Cloud Computing has changed many different aspects of the world, over the last decade or so in which it has been implemented. Across many sectors in the business world, the cloud has revolutionised various processes and practices.

With all of that said, however, there have always been people and organisations who are unsure of a new technology as it emerged, and would prefer to continue using their legacy technologies. There were many organisations in the financial services sector who felt like this about cloud technology – but in 2022, a shift toward cloud-based business is happening in the sector.

On this subject, we spoke to an IT support company London based finance companies have used and trusted for many years now. The company, TechQuarters, is a big believer in the cloud, and listed some of the top benefits that financial companies can get from it: 

Lower Costs

Whether its running a bank, providing accounting services, brokerage services, insurance, or any other type of financial service, the technology costs have always been high.

The amount of data being handled by these organisations demands large datacentres which, without the used of the cloud, would have to be built and paid for by the institution using them. Furthermore, staff must be hired and trained to operate these datacentres. Then there are the server demands of running a modern financial institution.

The trouble with on-premise, or private datacentres and servers is that the institution running them must replace them every few years; which is a very costly overhead.

With cloud computing, however, the cost of hosting data, apps, and networks is drastically lower, because institutions no longer need to pay for and build the hardware infrastructure themselves – instead, they pay the cloud provider for access to their resources. In the long run, this is much cheaper.

Scalability & Scalability

Cloud computing provides businesses with highly flexible and scalable resources which can be scaled to meet demand. As we mentioned in the previous point, running financial services requires a mix of dedicated hardware and software, and the more people one’s services are being used by, the more of these resources need to be in play. 

Before the days of the cloud, this means purchasing and setting up additional servers, installing software on them, and connecting them to your network. This cost money, but it also took time – thus, scaling up one’s service took time.

With cloud computing, the cloud provider already has a larger infrastructure build than what all of their customers put together could ever need to use. In other words, when a customer needs to scale up their services, the resources they need to do this are already there, provided by the cloud platform they are using. This means that financial institutions can scale their services up (or down, if need be) in a matter of days, or even hours.

Efficiency

When we spoke to TechQuarters, who have provided IT support services London financial institutions have been using for more than a decade, they told us that one of the biggest benefits is the efficiency one can achieve whilst leveraging the Cloud.

Running financial services encompasses many different processes occurring at once, and the more that a business can streamline these processes, the more efficiently they will be able to deliver and run their services for customers.

A great example of this is the ability to collect and analyse market data. This is something that can be streamlined using the cloud, because an institution can set it up so that all data collected is fed into the cloud, where it can be analysed quickly and efficiently.

Security

Security always has, and always will be, a very important conversation within the financial services sector. TechQuarters told us that the IT support financial services look for from them has always prioritised security.

Financial institutions handle a lot of very sensitive information, and so have always been a major target for cyberattacks. As a result, the market for security – particularly data security – has always been significant.

As a result of this, leading Cloud providers have invested a lot of time, money, and effort into ensuring that their datacentres and infrastructure has the most cutting edge security built into it. In fact, Cloud providers are one of the biggest investors of cybersecurity research in the world, because it ensures they get access to the latest security technology as soon as it is proved to work.

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