Cloud technology makes it possible for financial institutions to scale processing capacity quickly up or down so that they may react to the changes in customer demand.
Cloud computing has the ability to make the processing and storing of user data a lot easier. Also, it has the potential to enhance data security and compliance with regulations applicable to the financial sector. With the introduction of new regulatory standards such as the GDPR in the European Union, it's become increasingly difficult for financial institutions to meet the strictest norms. The cloud approach helps get the infrastructure compliant and secure. In data analysis, the cloud can be used to combine data science and AI to detect fraud or give credit scores.
But the cloud can also help banks reduce costs. This is done by removing unnecessary upfront investment, while still matching the growing demand of ever-expanding business in the sector. Also, using cloud allows companies to try out the best, cutting-edge technologies such as AI and data analysis without having to spend a fortune on dedicated AI clusters. As the market pressure slowly pushes all the companies towards these new technologies, using cloud can help them save their bottom line.
Yet, the most intriguing potential benefit of the cloud is scalability. Simply put, cloud technology enables dynamic allocation of resources such as storage space, processing power or network bandwidth to meet customer demand. For example, picture a bank rolling out a massive ad campaign, and the users immediately start putting real pressure on the existing infrastructure. The cloud can drastically increase app capacity to answer peak demand preventing potential outage and saving user experience. The cloud can be programmed to learn about peak times and scale the available bandwidth predictively according to the demand it estimates. Then, when less clients are using the apps, the cloud can scale down resource usage to reduce costs. This approach helps companies achieve top user experience while keeping the cost in check.