When something as unprecedented and unnerving as the COVID-19 pandemic hits the global economy, the repercussions are most likely to alter the style of operating and living in every way. At the onset of COVID-19, most businesses were struggling to survive as the new normal made their technologies and functioning methods obsolete in many ways. Fintech companies were rushed to penetrate speedy contactless payments while banks and other financial institutions reluctantly made heavy investments to deliver digital banking services.
Cloud Computing - A Catalyst for Digital Banking Transformation
The snowballing waves of the pandemic created a pressing need for remote self-service technology. To support such metamorphosis in the banking and fintech industry cloud support became crucial. A survey states that 87% of global IT decision-makers agree the COVID-19 pandemic will lead to organizations accelerating their migration to the cloud and an inevitable decline in on-premises workloads by 2025. Although in the pre-COVID-19 era, various banks and fintech firms were unwilling to switch to the cloud due to concerns like increasing costs, challenges in managing complex business data and workloads, re-training existing IT staff, and more; the pandemic has completely altered the approach towards the technology.
Why Should Banks Choose a Cloud-Enabled Solution to Facilitate Digital Banking?
With small businesses taking steps towards digitization and automation of their enterprise, sectors like banking and fintech now find it imperative to innovate and adopt the latest capabilities to lower costs, improve speed, and expand their market footprint. Cloud computing has simplified digital banking transformation by offering advantages that impact both office and back-office operational models in the banking and fintech industry. With the following benefits of employing a cloud-based digital banking solution, banks can be more future-ready while enhancing revenues as well as value for users.
Enhanced Security with Cloud Computing
Customers are becoming increasingly mindful of how their personal data is safeguarded in the era of elevated data breaches and cyber security threats. The financial services sector has a commitment to uphold its customers' data, and the cloud is helping them do so more effectively. Many of the vulnerabilities that traditional on-premises IT infrastructures provide are being reduced by cloud computing in financial services through data encryption and zero trust verification and access control.
Get Better Insights of User Behavior
In the contemporary scenario, advanced analytics is the key to unlock the insights confined in user data. Real-time data analysis is useful while laying the groundwork for a superior level of personalization and active engagement across all channels and this is only possible with cloud technology. With real-time analysis, banks and financial institutions of today can gain a better understanding of individual client behavior and take prompt and necessary actions to boost conversion, engagement, as well as loyalty.
Making Real-time Payments More Accessible
In times when real-time payments and remote payments are the norm, banks and fintech companies require a strong and advanced infrastructure to facilitate them. Cloud exceptionally improves the speed, consistency and frictionless transactions. A cloud-enabled digital financial solution can allow banks to address their major pain points of traditional payments especially spikes in demand.
Better Scalability, Agility and 24/7 Uptime
With cloud, it is easier for banks to respond to changing market conditions by utilizing data and applied analytics. Cloud opens doors to numerous possibilities that include adapting to changing market or competitive dynamics as well as the scalability of technology usage. Cloud-enabled digital financial solutions also allow banks to function during bank closures and provide banking services to as many users as possible. Further on, expanding banking services to meet increasing user demand is easier with 24/7 uptime.
Handling Risks and Compliance
Compliance operations require efficiency, automation, and cloud-based delivery. In the digital age optimizing risk modeling demands next-generation technologies and digital methodologies. Cloud can solve many difficulties in operational risk and financial crime compliance tasks because it is quick, flexible, and low-cost.
Cloud is the Key to Be Digitally Savvy in Banking Industry
While there have been concerns about cloud security and regulations, cloud computing solutions are becoming more common in the market for both traditional and non-traditional financial institutions. Rapid digitization is only possible with cloud computing.
Cloud computing provides banks and fintech enterprises with a huge potential to promote innovation and improve their competitive position. Cloud computing, whether private, hybrid, or public, allows banks and fintech companies to be significantly more adaptable while lowering IT and operational costs. Panamax’s MobiFin Elite is a digital financial suite that is deployable on-premises, on cloud or in a hybrid fashion. It has a cloud-enabled multitenant system along with customized configuration to guarantee reduced OpEx for customers. Its flexibility allows you to deploy a range of Digital Financial Solutions including Wallet Suite, Banking Suite, Microcredit Solution, eKYC with Smart Biometrics, and Hardware PoS Solution.