For a long time, the finance industry's adoption of cloud service tools was essentially limited to startups. While young and up-and-coming finance companies were quick to embrace cloud tools as part of their business infrastructure, larger and more established financial institutions shied away from the cloud, preferring to stick with their traditional IT infrastructure.

Such is not the case any more. There has been a shift in the paradigm over the last few years where many larger and established financial companies with a traditional IT infrastructure have sensed the need to embrace the cloud services. 

The primary reasons for financial companies to adopt the cloud trend include benefits like lower cost, more efficiency, scalability, and access tools on an as-needed basis. In addition, the cloud can help financial firms easily integrate with solutions offered by large technology providers and smaller startups alike.

The following are the major game-changing factors that are contributing to broader adoption of cloud services:

Data Security and Privacy Capabilities

In the past few years, modern cloud services have established better security, privacy, and compliance controls for cloud applications. Cloud service providers may also help you employ automation to avoid any possible manual errors that can put the firm at risk. Financial companies can more easily meet the cybersecurity and compliance objectives in the cloud than traditional data centers. The Public Cloud has helped cloud vendors meet both U.S. and global jurisdiction regulations.

Availability of Cloud-Ready Talent

As cloud computing is booming in every industry, more IT professionals have gained experience in migrating applications from local data centers to the cloud and managing things remotely. These cloud experts have a high demand in the financial sector, especially cloud engineers, DevOps, and software developers that work with cloud-native platforms. Some financial companies are even training their employees to develop an in-house team of experts. 

Greater Emphasis on Financial and Operational Re-Engineering 

Moving applications to the cloud requires a certain amount of investment. However, many financial service companies have found different ways to measure the ROI of cloud migration

The true transformational benefit may be the ability of these companies to deliver technology products and services via new channels. For instance, financial institutions can offer smarter service to bank customers and credit union members with screen pops that show real-time information including recent interactions. 

UpCurve Cloud allows you to avoid costly internal infrastructures like servers and storage systems. Our resources are shared across offices for a level of redundancy that can be less expensive than traditional, premise-based systems.

Diminishing Concerns About Vendor Lock-In

At one point, vendor lock-in was a concern for the financial companies. However, FSI concerns about being tied long-term to a particular cloud vendor appear to be fading. Many financial services prefer to go through multiple vendor evaluations, ensuring that the data can be easily migrated to another environment if the company decides to hire a different vendor at any stage. 

It is important to hire a reliable and certified cloud partner who understands the unique needs of financial sectors so you can focus on your core domain expertise. The companies can often build apps and later move them to the cloud in a way that enables them to control their own intellectual property in the event of vendor contract termination. 

Wrapping Up

The cloud industry has evolved with benefits in a very short space of time. Cloud partners have built close relationships with banking software players, enabling them to come to market with a joint proposition. Cloud services have opened up opportunities to innovate and create a better customer experience for financial enterprises small and large.

As a Premiere Google Cloud partner, we help you to customize and automate your work processes using cloud services so you can easily collaborate and share your assets in real-time within your organization, with top-level security.

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