The financial services industry has been slower than other sectors to adopt cloud computing. Many financial companies still rely on on-premises IT, legacy mainframes and monolithic applications.
Migrating and refactoring these resources can take considerable time and effort enough to keep IT leaders from making the switch. However, things are picking up steam, thanks to the many ways in which cloud technology has evolved.
Today's leading cloud service platforms, like Amazon Web Services, offer a multitude of tools that make it easier to leverage best-in-class technology with minimal IT management. This is great news for financial services organizations that need to create value, innovate, and cut costs. The world is changing faster than ever, and one of the best ways to keep up is to embrace the cloud.
What's on the horizon in financial services?
It's increasingly clear that the cloud offers numerous benefits for financial services companies. Looking ahead, those who use the cloud effectively will separate themselves when it comes to:
Big data analytics
The cloud unlocks big data in multiple ways. On the cloud, financial services companies can ingest, store, process and analyze data at massive scales. This data can include banking statements, customer portal log data, marketing engagement metrics, real-time spending information and much more.
Financial institutions no longer have to be bound to the limits of their on-premises IT or in-house technical capabilities. Instead, they can now offload that infrastructure and work through the cloud, where computing and storage are available on-demand under pay-as-you-go pricing models.
What's more, all the financial data that companies keep is safer in the cloud. That's assuming data engineers configure their cloud environments appropriately. Cloud platforms like AWS provide solutions that automate security assessments and simplify access control. They also make it easier to maintain regulatory compliance at a time when governments worldwide are adopting stricter policies for data management.
In the future, big data analytics will be even more accessible to financial services organizations than it is today. The question that teams will be asking when it comes to big data is "what" to analyze, rather than "how."
Better fraud detection
On a related note, fraud detection powered by big data in the financial industry will grow increasingly important. Through the cloud, financial organizations can build, train and deploy advanced artificial intelligence and machine learning algorithms that have the ability to identify patterns that would otherwise be invisible to human analysts. These patterns may represent fraudulent activity, biases or human errors.
Going forward, fraud detection capabilities on the cloud will get smarter and faster. Companies will be able to catch bad actors or problems in their algorithms quickly. The key will be learning how to maintain and fine-tune ML models over time.
As we're learning, ML models do degrade, which means AI isn't a "set it and forget it" type of technology yet. Fortunately, cloud platforms like AWS recognize the power of AI and ML and continue to invest in solutions to make the technology easier to manage.
Personalized financial products
Another way the cloud will continue to shape the financial services space is by empowering companies to deliver more personalized offerings to customers. The abundance of data available today can be used to create products that cater more to individual needs, rather than broad demographic groups. Organizations will be able to create better customer experiences and focus their marketing efforts to maximize ROI.
Additionally, engineering teams will have more freedom to innovate. They will be able to automate crucial parts of their IT infrastructure and development processes, ultimately reducing time to market. And organizations that want to give users more control over their accounts will be able to build useful self-service portals.
The age of efficient personalization in the finance industry is here. Enterprises only need to figure out how to build agile and integrated cloud environments in which everything works together to improve the customer experience.
The financial services sector has been lagging behind in adopting cloud computing due to the effort involved in migrating and refactoring their legacy systems. However, advancements in cloud services are encouraging more organizations to transition to the cloud.
With the cloud, financial institutions can manage vast amounts of data more efficiently and securely, with automated security assessments and simplified access control, complying with increasingly stringent data management policies. Furthermore, cloud technology promotes innovation and streamlines the development process, enabling financial organizations to offer more personalized products and services, marking the advent of an era of efficient personalization in the finance industry.
Read the original:
How the cloud impacts the financial services industry - Accounting Today
- 5 Questions Schools Should Ask Before Selecting a Cloud Security Platform - EdTech Magazine: Focus on K-12 - December 8th, 2023 [December 8th, 2023]
- Marvell Extends Connectivity Leadership for Accelerated Computing With Two Cloud-Optimized PAM4 Optical DSPs - PR Newswire - December 8th, 2023 [December 8th, 2023]
- Commission green lights state-aid partnership for cloud computing - Research Professional News - December 8th, 2023 [December 8th, 2023]
- EU approves 1.2 billion to boost local cloud - Computing - December 8th, 2023 [December 8th, 2023]
- How organizations can learn from cloud security breaches - TechTarget - December 8th, 2023 [December 8th, 2023]
- EU provides 1.2 billion euros for European cloud computing project - Notebookcheck.net - December 8th, 2023 [December 8th, 2023]
- Highlights from Gartner IT IOCS Conference 2023, Las Vegas - Gartner - December 8th, 2023 [December 8th, 2023]
- The EU just launched a 1.2 billion cloud project to crack US dominance - ITPro - December 8th, 2023 [December 8th, 2023]
- CoreWeave backed by Fidelity and Jane Street at $7 billion valuation as cloud provider bolsters status as one of AIs hottest startups - Fortune - December 8th, 2023 [December 8th, 2023]
- Insurtechs using AI, ML and cloud computing. - Digital Insurance - December 8th, 2023 [December 8th, 2023]
- Broadcom to divest VMware's end-user computing and Carbon Black units - The Register - December 8th, 2023 [December 8th, 2023]
- Australia building 'top secret' cloud to catch up and link with US, UK intel orgs - The Register - December 8th, 2023 [December 8th, 2023]
- CORRECTION-Nvidia in talks with Malaysia's YTL on data center deal- sources - Yahoo Eurosport UK - December 8th, 2023 [December 8th, 2023]
- NCS announces strategic partnership with Google Cloud to accelerate digital transformation in Asia Pacific, ETCIO SEA - ETCIO South East Asia - December 8th, 2023 [December 8th, 2023]
- McDonald's and Google Cloud Announce Strategic Partnership to Connect Latest Cloud Technology and Apply ... - PR Newswire - December 8th, 2023 [December 8th, 2023]
- Computing Power Market Revenue to Total USD 81.3 Billion by 2032 | Growing Investments In Data Centers - GlobeNewswire - December 8th, 2023 [December 8th, 2023]
- Aqua Security on how to navigate the Cloud's complexities - IT Brief Australia - December 8th, 2023 [December 8th, 2023]
- NCS partners with Google Cloud in Australia and Singapore - Channel Asia Singapore - December 8th, 2023 [December 8th, 2023]
- GigaIOs SuperNODE to Power TensorWave Deployment with AMD MI300X - High-Performance Computing News ... - insideHPC - December 8th, 2023 [December 8th, 2023]
- This $500 device lets you easily build your own Cloud Server instead of paying Google, Microsoft, or Amazon - Yanko Design - December 8th, 2023 [December 8th, 2023]
- What's Going On With Alibaba Cloud? - The Motley Fool - November 26th, 2023 [November 26th, 2023]
- China's Alibaba shakes up cloud unit management after scrapping the division's IPO - CNBC - November 26th, 2023 [November 26th, 2023]
- Five things to look for at AWS re:Invent 2023 - SiliconANGLE News - November 26th, 2023 [November 26th, 2023]
- Broadcom completes its $61 billion acquisition of VMware - Times of India - November 26th, 2023 [November 26th, 2023]
- On the Rise: The Top 3 Cloud Computing Stocks to Watch - Nasdaq - November 26th, 2023 [November 26th, 2023]
- What You Need to Know About Hybrid Cloud Computing - What You ... - InformationWeek - November 26th, 2023 [November 26th, 2023]
- Microsoft to invest $500 million to expand hyperscale cloud computing and AI in Quebec - MarketWatch - November 26th, 2023 [November 26th, 2023]
- Service Included, FinOps Foundation Counts Cost Of Cloud - Forbes - November 26th, 2023 [November 26th, 2023]
- Microsoft Unveils Azure Custom Chips: Revolutionizing Cloud Computing and AI Capabilities - MarkTechPost - November 26th, 2023 [November 26th, 2023]
- Why 2023 Became the Year of Next-Level Technology Value - Medium - November 26th, 2023 [November 26th, 2023]
- Edge vs Cloud or Edge plus Cloud: What is the way forward? - Express Computer - November 26th, 2023 [November 26th, 2023]
- eSurfing Cloud Launches the WisHub One-Stop Intelligent ... - PR Newswire - November 26th, 2023 [November 26th, 2023]
- Predictive Maintenance (PdM) Market to grow by USD 16.57 billion growth between 2022 - 2027 | Growth Driven by Increased adoption of advanced... - November 26th, 2023 [November 26th, 2023]
- Udemy Partners with Google Cloud as Inaugural Member of its New ... - AiThority - November 26th, 2023 [November 26th, 2023]
- AWS and DXC Technology Strengthen Alliance for Cutting-Edge ... - Read IT Quik - November 26th, 2023 [November 26th, 2023]
- Windows-as-an-app is coming - Computerworld - November 26th, 2023 [November 26th, 2023]
- 2 Soaring Stocks I'd Buy Now With No Hesitation - The Motley Fool - November 26th, 2023 [November 26th, 2023]
- ZTE holds Core Network User Congress in Thailand, driving digital ... - ZTE - November 26th, 2023 [November 26th, 2023]
- Mercedes F1 accelerates AI adoption in off-track IT transformation ... - ITPro - November 26th, 2023 [November 26th, 2023]
- Amazon wants to train millions of people in basic AI skills - TechRadar - November 26th, 2023 [November 26th, 2023]
- US grid rules preclude reliability, security benefits of cloud ... - Utility Dive - November 17th, 2023 [November 17th, 2023]
- Udemy Partners with Google Cloud as Inaugural Member of its New Cloud Endorsed Content Program - Yahoo Finance - November 17th, 2023 [November 17th, 2023]
- Google Cloud certifications nab highest-paying IT jobs - InfoWorld - November 17th, 2023 [November 17th, 2023]
- Nearly a quarter of businesses are losing more than 100,000 a ... - CloudTech News - November 17th, 2023 [November 17th, 2023]
- Cloud Security Alliance announces new zero-trust security credential - CSO Online - November 17th, 2023 [November 17th, 2023]
- Cloud Computing Market size to reach USD 2,495.2 billion by 2032 according to a new research report - WhaTech Technology and Markets News - November 17th, 2023 [November 17th, 2023]
- Vultr and Rescale Advance High-Performance Computing to Accelerate Engineering Innovation Worldwide - Yahoo Finance - November 17th, 2023 [November 17th, 2023]
- Cloudsky Showcases Breakthroughs in Cloud Computing at 2023 ... - PR Newswire - November 17th, 2023 [November 17th, 2023]
- Edenor reduces outages using cloud computing technology - Utility Week - November 17th, 2023 [November 17th, 2023]
- Software Growth Stocks: Consumption-Based Pricing Back In The ... - Investor's Business Daily - November 17th, 2023 [November 17th, 2023]
- High Availability Server Market to Cross USD 27.30 Billion in 2030 Driven by Rising Dependence on Digital Infrastructure and Surge in Cloud Computing... - November 17th, 2023 [November 17th, 2023]
- Micro Data Centers Market to Reach US$ 33.4 Billion by 2030, Driven by Growing Demand for Edge Computing and Cloud-Based Applications | According to... - November 17th, 2023 [November 17th, 2023]
- The 10 Coolest AI Tools And GenAI Products Of 2023 - CRN - November 17th, 2023 [November 17th, 2023]
- Civo CEO on free credits, egress fees, and hauling it all back on-prem - The Register - November 17th, 2023 [November 17th, 2023]
- Tech Headlines of the Week: Data Breaches, Microsoft's AI ... - Techopedia - November 17th, 2023 [November 17th, 2023]
- Vultr Announces Addition of NVIDIA GH200 Grace Hopper ... - Business Wire - November 17th, 2023 [November 17th, 2023]
- Proposed Rules Overhaul Cybersecurity Requirements for ... - JD Supra - November 17th, 2023 [November 17th, 2023]
- The #CloudExit Movement And What It Means For Amazon Stock ... - Seeking Alpha - November 17th, 2023 [November 17th, 2023]
- Nasdaq Completes Migration of Third US Market to AWS - Markets Media - November 17th, 2023 [November 17th, 2023]
- CSIT and Google Cloud partner to pilot sovereign cloud solution in ... - ETCIO South East Asia - November 17th, 2023 [November 17th, 2023]
- Qualcomm Cloud AI 100 Now Available in the Cirrascale AI ... - HPCwire - November 15th, 2023 [November 15th, 2023]
- ZTE and Computer Union join forces on cutting-edge IT solutions in ... - ZTE - November 15th, 2023 [November 15th, 2023]
- VAI Resort Taps Oracle Cloud to Deliver Rock-Star Guest Experiences - Oracle - November 15th, 2023 [November 15th, 2023]
- Oracle Helps Healthcare Organizations Improve Inventory ... - Oracle - November 15th, 2023 [November 15th, 2023]
- Paraverse Technology Releases Groundbreaking White Paper on Decentralized Operations and Trading Platforms for 3D Digital Assets - Yahoo Finance - November 15th, 2023 [November 15th, 2023]
- How to Leverage New Age Cloud Technologies for Business - Analytics Insight - November 15th, 2023 [November 15th, 2023]
- Cloud to help realise smarter AI-powered digital twins - FutureIoT - November 15th, 2023 [November 15th, 2023]
- NTT Beats New Drum To Bring Photonics-Powered AI To Industry - Forbes - November 15th, 2023 [November 15th, 2023]
- Gartner: Modernising legacy applications for cloud-native success - ComputerWeekly.com - November 15th, 2023 [November 15th, 2023]
- Alibaba Cloud and United Women Singapore launch digital female ... - ETCIO South East Asia - November 15th, 2023 [November 15th, 2023]
- KBZ Bank Digitizes for Innovation and Scale with Oracle - Oracle - November 15th, 2023 [November 15th, 2023]
- Southeast Asia's digital battle: Chinese and U.S. Big Tech face off ... - Nikkei Asia - November 15th, 2023 [November 15th, 2023]
- Vietnam Cloud Based Infrastructure as a Service Markets, Competition, Forecast & Opportunities, 2028F: Government Initiatives and Increasing... - November 15th, 2023 [November 15th, 2023]
- Cloud to drive surge in European IT spending next year - ITPro - November 15th, 2023 [November 15th, 2023]
- Oak View Group Partners with Oracle to Supercharge Fan ... - Oracle - November 15th, 2023 [November 15th, 2023]
- Momentus Inc. Announces Third Quarter 2023 Financial Results - Daily Host News - November 15th, 2023 [November 15th, 2023]
- Community and Critical Access Hospitals Select Oracle Health ... - Oracle - November 15th, 2023 [November 15th, 2023]
- AiAdvertising Reports Third Quarter 2023 Financial Results - Daily Host News - November 15th, 2023 [November 15th, 2023]
- GIC chief says investors should prefer Big Tech to start-ups on AI - Financial Times - November 15th, 2023 [November 15th, 2023]
- Daniel Seybold, Author at The New Stack - The New Stack - November 15th, 2023 [November 15th, 2023]