The age of digitization of services as well globalization have significantly shifted the method of data collection, access and use to a self-driven computer software’s for the digitization of banking/financial services. The availability of computer system resources like data storage space and computing power without any manual management of the employees of the bank is referred to as cloud banking. The hour demands the need for a safe and secure regulatory environment so that both the banks and supervisors can do their jobs effectively.
Since the cloud-based infrastructures are self driven on artificial intelligence, therefore the data analytics for banks is made easier, faster and precise.
Banking cloud services generally provide dynamic apps and storage space to the banks.
Although the contractual agreement and negotiations between banks and cloud service providers(CSPs) are facing significant collisions.
Let us understand the different models of cloud computing in banking environment:
1. Infrastructure As A Service(IAAS):
Infrastructure As A Service(IAAS) is a type of cloud computing service which supplies the customer with IT infrastructure managed over the internet on subscriptions. Rather than purchasing data centres, software’s, servers and networks, the businesses can purchase these resources as completely outsourced services.
2. Business As A Service(BAAS):
BAAS is used for extensive processes such as billing, payroll, human resources, etc. It is an end-to-end process which ensures the comprehensive execution of financial service providers over the internet. Digital banging is an excellent example of banking as a service which is available on demand and can be carried out within the time bounds.
3. Software As A Service(SAAS):
SAAS allows the customers to connect and use the paid cloud based applications over the internet and the entire stack is managed by the service provider. Users can access all the software’s, data stores, network equipment from their own browser. This model can be used to deliver enterprise resource planning(ERP), customer relation management(CRM), invoicing, human resource management and content management.
4. Platform As A Service(PAAS):
In the Platform As A Service(PAAS) model, the cloud service provider provides an accomplished platform to businesses to run, manage and flourish their applications without being a part of infrastructural complexities like application launch and development. It provides the customer with an on-demand environment for development, testing, managing and deploying software applications over the web.
Cloud banking offers several advantages to the financial institutions which includes:
1. Cost-effective: Cloud banking software’s allows financial institutes to cut the unnecessary expenditures as well as large infrastructural costs so that they can focus on all the crucial projects and businesses.
2. Improved Management: cloud banking helps large financial firms or banks to make rapid adjustments to their resources for unexpected and fluctuating business requests and upload the heavy applications online within no time because of the vastly improved management of the cloud computing that requires least maintenance.
3. Business Continuity: As the service provider manages the technology, banking institutes now possess a higher degree of fault tolerance and mishap recovery. The confidential information from the ancient data storage’s may have been lost but cloud computing offers a higher level of backup and top-notch security.
4. Accessibility: As the data present on the cloud can be accessed by anybody using any browser from anywhere and the limitations of client server environments are not applied.
Therefore, cloud computing helps the banks to develop more agile and flexible business handouts in the competitive industry and improve their customer service.
