An Introduction To Cloud-Based Banking Infrastructure

Cloud is slowly becoming a part of banking infrastructure. Professionals who enter the banking and finance sector are now expected to be familiar with Cloud technology. Thus, many universities that offer banking and finance courses, have now added Cloud-based banking infrastructure to their course syllabus. Banking certificate courses, like BBA and MBA in Banking and Finance, have also integrated Cloud-based banking infrastructure, in their curriculum.

Features of Cloud-Based Banking Infrastructure

Cloud-based banking provides the following unique features:

• Collaboration – Cloud allows data sharing between fellow employees of a team, or a large network, making the process of problem-solving faster and more accurate. This leads to a better customer experience. Modern banks look for employees who are comfortable working on Cloud-based technology and that is why contemporary professional banking courses now include Cloud-based banking infrastructure as a part of their syllabus.
• Data Security – Cloud has better data security as compared to physical security in a location-based data storage infrastructure scenario. Cloud uses encryption mechanisms to secure its data. Data stored on location can be stolen, infected or destroyed if the hardware is damaged. But, Cloud uses off-location data centres that ensure your data is safe without any need for physical security.

• Cost-savings – Using a Cloud-based banking infrastructure helps make huge savings on the IT infrastructure budget. A part of the capital has to be dedicated to setting up IT infrastructures like computer systems, on-location servers, local area networks and IT staff. Cloud has inbuilt software to organise and compile data and perform various specialised tasks on an on-demand basis.
• Data Recovery – In cases of natural disasters or data tampering, Cloud computing equips banks to respond immediately, creating resilience. It can replicate data and send it across various geographical regions in a short period. This helps maintain trust, credibility and reputation of the bank. Data recovery acts as an added security feature to prevent the loss of valuable data.

Use of Cloud-Based Infrastructure in various banking functions

Many Banking Institutes have gained a competitive edge by incorporating Cloud technology in their daily operations. Some banks use Cloud computing for all core banking functions, while some use it in non-core functions, like customer service. The various functions where Cloud is used are:

• Data Storage
• Data Management
• Customer support
• Risk Management
• Research and Development
• E-Banking
• Governance
• Monitoring and Surveillance

To operate entirely on Cloud, banks are now in need of skilled individuals who are qualified with banking certificate courses. Cloud-based banking has emerged as an important technology in the banking sector.

Conclusion

Cloud technology has revolutionised the outdated banking model. It has created scope for innovative solutions and a better customer experience. In this digital era, Cloud-based banking infrastructure is helping banks meet the growing demands of the new-age customer. It is consolidating the banking system by interconnecting banking units across the globe.