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According to a recent report, the pandemic has accelerated the cloud migration strategy for many financial institutions. It is expected by 2025, almost 95 percent of the workloads will be migrated to the cloud.
FREMONTCA: The cloud had already been transforming the fintech sector even before the COVID-19 pandemic. However, as the COVID-crisis validated the cloud's value proposition, even the earlier reluctant players in the domain have been hastily adopting the technology.
There are many attributes for cloud technology that have been luring the interest of these financial institutions. First and foremost, when compared to traditional storage methods, the cloud does have the upper hand in agility, scalability, and better data handling. Flexibility and reduced costs are additional advantages. While traditional methods are time-consuming and lack scalability, the cloud offers on-demand web apps that are flexible and agile.
Secondly, cloud technology can help with providing real-time information with reduced latency. In the financial industry, the ability to deliver instantaneous data and inputs does have a great significance. For instance, it is pretty standard for this sector to rely on trading apps for updates and data searches to analyse the market movements, and a delay in that process can cause heavy damages to investors. But, this risk can be eliminated with the help of cloud technology.
Since the emergence of AI, ML, and data analytics, the need for better data storage space has been increasing exponentially. As the traditional storage methods come with less scalability and require upgraded infrastructure to safeguard the data, institutions are shifting to the cloud, where a massive amount of data can be stored and secured without additional costs.
Furthermore, the financial industry does have to deal with regulations since security is the topmost priority in this sector. These regulations vary from location to location, and it can be a complicated process to access and store data using traditional storage methods. By switching to cloud banking, financial institutions can perform their operations effortlessly while utilising the security features of the cloud to detect potential threats.
Interestingly, during the pandemic period, the finance industry benefited from cloud technology as it helped with the remote working scenario. The operations were performed efficiently as the employees were able to access and share data remotely. Consequently, the financial sector is now on its way to explore more of this technology and discover its endless applications, which can significantly impact the industry's progress.