In technology driven era, internet has become indispensible source of doing business and financial transaction. Cloud computing is transforming the way customers interact with data. This exchange of information between companies and customers has influenced financial services industry in many ways. The segments of financial services using cloud computing are Banking (core banking, lending, leasing, revenue management, billing etc.), Insurance (policy administration in life and annuity, health insurance, underwriting etc.), analytics (financial crime management, risk management, performance management etc.), Venture Capital funding etc.
Cloud computing has made startups to build companies faster and cheaper than ever before. For instance, Amazon Web Services has facilitated startups to cheaply rent server space and development tools in the cloud. This would help startups to save on capital/investment requirement at the time when they need it the most. There are companies that are committed towards providing cloud solutions to their clients. For example, IBM offers cloud services with multiple benefits to enhance financial services solutions to its customers. Similarly, in 2011 Capgemini and Microsoft announced a joint plan to offer accelerated cloud services in 22 countries based on Microsoft’s cloud solution, Windows Azure. They together agreed to do research in critical issues in cloud like data quality, security, and sovereignty.
In a recent survey, main three reasons for not using cloud were reported as security concerns, regulatory restrictions and concerns over public breach notification. Thus, security issue is the top concern of users and the unanimous barrier holding back cloud adoption. The financial industry is still in the nascent stage of cloud adoption. To further increase the penetration of cloud computing in this industry, data security features should be given top priority.
Mr. N P Singh
JIMS, Sec-5, Rohini