Alok Kumar Agarwal: Cloud computing is a great tool to streamline technological needs in the banking sector

We have all heard about the “cloud,” but what exactly is the cloud, and what is cloud computing?

Cloud computing refers to  delivering computing resources, such as servers, storage, database, software, and analytics, over the internet. Instead of owning and maintaining physical infrastructure, businesses and individuals can access and use these resources on demand, paying only for what they need and use. 

“Cloud services can exponentially bring down costs and improve various processes. Therefore, the Indian banking sector should embrace this technology as it will help  streamline and automate processes” Alok Kumar Agarwal Alankit.

According to the IDC report, almost 80% of the corporate banks in India are expected to trade finance and treasury workloads on the cloud by 2024. With numbers indicating a significant shift towards cloud computing, let’s take a look at how exactly it can help in the Banking sector

1. Cost saving and billing based on usage: instead of paying a hefty upfront fee for hardware and storage, banking institutions pay small operations costs without any problem with storage or hardware that needs upkeep. “the best thing about cloud computing is that it cuts down the cost exponentially and provides practical solutions however in a sector like banking, it is important to adopt measures to secure sensitive data.” Alok Kumar Agarwal
2. Operational efficiency and better data security: banks can enjoy services like quality control, migration support, the latest technological updates, compliance and certification, and many other services. With frequent updates in software and multiple layers of security, cloud storage offers better security against data breaches and attack  than most on-premises systems.
3. Data analytics: cloud-based analytics can be used to assess data on the needs and patterns of the customers. This real-time data analysis helps  personalised services and active engagement, which is not easily possible with traditional methods. These deeper insights based on data can help banks touch the  customer’s pain points and give a peak into customer behavior.
4. Provides an eco-friendly alternative: By transferring data to a virtual environment, energy consumption drastically reduces. Carbon footprint is also reduced by minimizing idle time and reducing the physical infrastructure.

“Even though it seems to be easy  just to move operations to the cloud; financial institutions should keep a few things in mind. First, the right services need to be selected to address security and compliance concerns. A  solid,robust risk management protocol needs to be in place in case of a data breach or other issues”, shares Alok Kumar Agarwal of Alankit. In a sector where people’s data and information are at stake, utmost caution needs to be taken.

In this age of neo-banks and Fintech companies in the race to provide instant services, the traditional banking sector needs to migrate to the cloud as fast as possible—India, with its 140 Cr. The population needs prompt, 24/7 services. The push Covid has given to the Fintech sector should continue, and traditional banks should adapt to this change to provide exceptional services to their customers.

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