5 Reasons why Cloud is the Silver lining for BFSI
Sr. Vice President & Business Head of BFSI Practice, HCL Infosystems Ltd.
Ask any CXO across any sector on the biggest disruptor they envisage in their sector- chances are that the unanimous response would be the onslaught of digital technologies transforming their industry landscape. At the forefront of these disruptive technologies is Cloud computing, which is expected to be one of the fastest-growing technologies in the coming years.
The Banking, Financial Services & Insurance (BFSI) sector, which was the pioneer in the adoption of computer & networking systems in order to curtail mammoth, space-intensive repositories and databases, is leading the race for adoption of Cloud technology as well.
The dynamic and competitive BFSI market is characterized by changing consumer demands, evolving macroeconomic landscape and bound by a regulatory framework. Technologies such as Cloud will empower the sector to navigate the challenges by lowering infrastructure costs, automating non-core business applications such as CRM and ERP, and bring innovative products to their customers.
Expansion into new Markets – Cloud computing helps banks to transform their business processes and enhance their ability to grow in new sectors or regions without the time and cost burdens involved with establishing a physical presence. It helps to create new markets and services to differentiate from competition and improve the ways customers’ access and use the bank’s products and services. Banks will have a much better ability to provide consistent service to customers across branches, geographies and also integrate a plethora of disjointed customer information and analytics.
Data-driven insights – With over a billion clients transacting day to day business through online banking services, -the volume and complexity of the data generated is immense and can hold the key to monitoring and predicting trends and opportunities for Banks and Financial Services Organizations. Adopting Cloud enables more sophisticated customer intelligence, enabling banks to migrate to “social enterprises” and reinvent their relationships with customers. The flexibility and efficiency offered by cloud services can help business keep track of market trends and adapt their strategies and functions dynamically.
Security and Risk Management–The present data storage architecture requires banks to be on-guard to growing threats of hacking and cybercriminals, the constant vigil and upgradation requires a dedicated workforce and employment of resources. Cloud Computing Service Providers takeover this hassle and ensure security and elimination of cyber threats faced by banks and financial institutions.
Speed to Market– In today’s world where customer loyalty is not a given, the fiercely competitive BFSI sector needs much more agility and rapid innovation to meet changing customer needs.Cloud Infrastructure enables better collaboration between internal teams, partners and customers, resulting in enhanced productivity, faster development cycles and increased speed to market. Also, by enabling businesses to rapidly adjust processes, products and services to meet the changing needs of the market, cloud computing can facilitate rapid prototyping and innovation, which empowers banks to provide new services and benefits to its clients more quickly and efficiently.
Enhanced Customer Satisfaction and Relationship – Another major advantage of digital channels is the ability to provide real-time solutions to customers. Banks have been able to considerably simplify their internal processes with the help of cloud systems, mobile apps and digital back-end set-ups. Cloud-based offerings leverage social media to significantly enhance the banking experience for customers. Providing seamless online customer experience has become an important factor for gaining customer trust, saving on operational cost in physical branches and providing more personalized services.
The Cloud revolution is happening here and now. However to ensure a smooth transition to Cloud and maximizing its benefits, it is critical to develop detailed and well thought-through strategies to deploy and manage cloud environments. Comprehensive Cloud advisory services on the Cloud journey will go a long way in leveraging the Cloud experience in the best possible manner.