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3 Ways COVID-19 Created Cloud Efficiency for Financial Companies

cloud computing 

By Shannon Flynn

Significant changes to everyday business practices continue to impact the industries that serve our world as a result of the ongoing COVID-19 pandemic. One sector that is dealing with the aftermath of the initial lockdowns is the financial sector.

Compared to other industries, banks and financial institutions could not function properly without incorporating the latest technology, especially regarding digital infrastructure. The pandemic shed light on this and led more establishments to adopt new technologies to improve their processes.

One of the main concerns banks have when digitizing their practices is security and data protection. Financial institutions have to reassure their customers that their assets are protected, and they can continue making transactions without worrying about identity theft, fraud or any other risks.

Cloud computing technology is constantly advancing, and it's no surprise that it would make its way into the financial services industry. The COVID-19 pandemic has accelerated the incorporation of cloud technologies into banking - it was a change borne out of necessity, as local branches and corporate headquarters experienced closure across the country.

Here are some ways the pandemic has forced the financial sector to make pivotal changes in cloud efficiency.

1. Facilitated a Work-From-Home Business Model

Many industries had to adopt a work-from-home business model to continue their day-to-day operations, and financial companies were no exception. If a branch had to close down its lobby to eliminate customer interactions, there had to be some way for them to continue their transactions and take care of their customers.

Migrating to the cloud was a necessary step with the introduction of remote work. Cloud infrastructure enables employees to work from wherever they are, so financial companies didn't have to compromise on that end. This was a big help during the early days of the pandemic and helped reassure customers their investments remained safe.

2. Improved Security and Data Protection

Because of the sensitive nature of the financial services industry, it's no wonder security and customer information protection are top priorities for any company dealing with money.

Thankfully, cloud technology offers advanced security measures that protect banks and their customers, even in the most chaotic days in March and April of 2020. Although on-premise data protection is still highly regarded, the benefits of cloud computing tech outweigh the risks.

Financial institutions must consider more security measures to prevent fraud and identity theft from wreaking havoc, and that's something to keep an eye on in the coming years. An ideal setup for banks and other financial service providers is to protect the customer while also improving their internal processes and streamlining their capabilities.

3. Reduced Costs and Increased Efficiency

Leveraging cloud technology to reduce costs and maximize efficiency became possible because of the COVID-19 pandemic. Cloud technology is known to save startups money, mainly because of its limited resources. New companies lack the necessary data storage and infrastructure to operate, so cloud technology is considered a viable solution.

One example of cloud-based tech is new enterprise performance management (EPM) software. This enabled employers to operate in a more agile and flexible manner. More industries will likely adopt EPM software in the coming years, and it will be interesting to see how it impacts cost and efficiency.

A Cloud-Based Financial Future

All industries benefit from adopting new technologies to enhance their processes further, and banking is no exception. Following the COVID-19 pandemic, it's crucial to examine how cloud-based technology breaks into the financial sector and continues to make an impact. It will keep banks current and help them remain flexible in a world that's constantly changing.

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About the Author

Shannon Flynn 

Shannon Flynn is a tech writer who covers topics like cloud computing, business technology, and data. You can find her work on Hackernoon, Cybint Solutions, Irish Tech News, and ReHack.com. Visit ReHack for other trending tech topics covered by Shannon. 
Published Wednesday, July 21, 2021 7:32 AM by David Marshall
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