How the Financial Industry Can Accelerate Its Digital Transition using Cloud technology

When every concept is being more updated with direct or indirect use of technology, the central pillar of a country, the financial industry, cannot ignore the digital transformation. Delaying in adopting the modern facilities will not only make the financial sector works slowly but also it will affect the country’s progress.

While the financial and banking industry tries to work in a formal way to make the customer satisfied by maintaining all the rules and regulations strictly, still, it faces the most dreaded threat of data theft.

To maintain the pace of work and to provide strong competition to other financial sectors, and obviously, to secure the data, it will be most appropriate to accept the changes and move forward being digital.

This article is about how the digital transformation can make the whole work process goes smooth for banking and financial service industry, and as well as will discuss the benefits of integrating a cloud-based system in the work-place.

The first step of digital transformation is controlling all the documents with the concept of the document management system (DMS) so that all the documents are going to be in digital format, and modifying and tracing them would be more comfortable. You need to know how it works and I think this video contains useful ideas for you.

Two types of document management software are available; those are:

  1. On-site/On-premise/Self-hosted DMS: All the records get saved in the server of the organization. The security and maintenance depend on the organization. No one outside the office can retrieve the data.
  2. Cloud-based DMS: Whole process of storing, modifying, and retrieving is done online. The user can get infinite virtual storage to save the documents, and no physical server is required. As the entire process is completed online, so the files can be retrieved by using any device which has an active internet connection.

Previously, the financial companies used to rely on the self-hosted DMS, as it is considered safer because the data cannot be accessed outside the office. However, nowadays, the situation has changed as the software providers are investing a lot of money to improve the security system in the cloud to make it impossible to penetrate by the hackers. Other than that, the cloud-based DMS can integrate itself with the system in such way so while doing any work in the cloud all the other security features like encryption, firewall, anti-virus, authorization, and authentication can be used.

Futurists are also betting their money on the cloud as they are claiming that cloud computing is going to be more updated in the near future to work with much ease. Let’s get into more details about the advantages of the cloud-based environment in financial industries.

 

Cost Effective

When no physical server is required, there’s no point of going over the budget to purchase such infrastructure or hire an entire IT team for maintaining it. Cloud computing requires a computer and an uninterrupted internet connection. Yes, these are the only expenses necessary for a financial company for digital transformation.

 

Work Efficiency

If the data can be accessible even outside the office, it becomes more convenient to collaborate with other team members from anywhere. An employee can be working from home or can visit a client’s place to attend some meeting. As the cloud allows file transferring using e-mails or FTP, so information can be both shared and received without any delay so that the workflow won’t get hampered in any way.

According to a study, by 2019, the banking sectors expected to invest in cloud computing technology with a lump sum amount of around $16.7 billion. The banking sectors believe in cloud computing because using this technology; it is quite easy to make a customer-centric model which can be a big step to make the customer satisfied in every way.

 

Speed

Literally, No one has the time to wait for a website to load completely. A survey held in April 2019 stated that almost half of the world’s population (around 3.2 billion people) uses the internet daily. So in this tech era, whenever we are thinking of purchasing anything that is just a few clicks away. It has been confirmed that around 69% of the clients prefer to buy wealth products like mutual funds, insurance online. People using online banking facilities are common today. So the websites of banking sectors are taking more than 4seconds to load, then 70% of people would leave those websites and move on looking for something new.

Cloud computing enables good speed to boost services. I found valuable guides in this article for you.

 

Reliability

Business transactions are the main purpose of the financial sector; if the transactions are not reliable, then it would hamper the goodwill of the industry. The cloud-based computing provides secure transactions like a digital wallet, online money transfer, e-wallets, etc.

 

There are many banks like Bank of America, Deutsche Bank has already migrated to cloud-computing for more service integrity and agility. Another survey stated that 85% of Fintech companies had implemented a cloud-based environment in their system already for faster work process. The above-mentioned benefits are primary benefits which are almost available in any cloud-based DMS, however, if you are dealing with reputed software providers, there are plenty more features you can get introduced, like as PDF format of document is globally accepted, some DMS already comes with such tools, using that, even paper documents can be directly converted to PDF.

It is indeed advisable to the finance company that without opposing go for the benefits that technology is offering to maintain the pace of work while competing with the other rival companies. Ignore the process, and your industry can become obsolete. Integrating a cloud-based environment will do miracles in the financial sector, everybody can predict that easily. As the competition is increasing every day do not avoid

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