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In the future, the Cloud will be crucial in three aspects of financial services:
Digital banking
Today, banks are developing digitally focused business models. They realized the significance of digital banking and utilized it to satisfy customer needs. Traditionally, customers would have to go to local branches to manage their accounts, but with the rise of digital-only banks, customers can manage their accounts at home. It indicates that technology and data platforms allow customers and banks to save time and money.
Buying and selling of trades
High technological expenditures have been restraining financial services companies for a long time. The real-time increase/decrease trades in peak time can be interpreted into essential data. These companies can ensure that they can have a sustainable and comprehensive ability to handle problems by analyzing the data.
Claim management
Traditionally, insurance companies reach out to their customers through phone calls and complete paper-based contracts through posts/emails. As a result, claim services in the Property and Casualty industry have the lowest positive feedback across all insurance businesses (Claims Journal). However, providing good claim services is crucial for a company to satisfy customers. Now customers are using multiple channels to communicate. Sophisticated machine learning-based detection can analyze data in the Cloud to manage claims and compensation.
In the future, cloud-native financial institutions will gain banking and financial success. The advent of cutting-edge cloud computing technologies, such as IoT, AI, and conversational bots, will help them be more responsive, effective, and competitive in price and product offerings. Innovative and virtual banking, digital wallets, mobile payments, and P2P lending will take digital transformation to the next level. Now you may ask how companies can shift their financial services to embrace the Cloud in the future. Here are three aspects you may consider in your cloud migration process.
From experiment to case application
The most critical stage for a financial institution to capture the Cloud's value is to implement Cloud. According to McKinsey Digital, the biggest obstacle in cloud migration is the organization's low trust in new technology. Therefore, establishing awareness of the practical benefits of the Cloud in your organization is of great significance. For example, you can work with Communication Service Providers (CSPs) rather than vendors to make your team see the scalable potential of the Cloud with strategic deals. For financial services companies like banks, embracing the Cloud means better resiliency, lower maintenance and operation costs, and an elastic infrastructure to meet customer demand. In addition, the actual case of the development of bank apps can help your organization to understand and support your goals.
Use Cloud in business-backed projects.
Realizing cloud migration will require you first to change your operating model. For example, successful financial services companies must combine technology and business work. Cloud migration will generate high business value when you work with cross-functional teams. Secondly, you should no longer see the Cloud as a part of your IT development. Instead of starting immigration with applications, you should migrate one entire business domain and make it repeatable in migrating other domains, so your team can monitor the level of business modernization with the Cloud. Eventually, you can initiate cloud-based business projects, such as AI-enabled process automation, to innovate your customer experience.
Automate your business as much as possible
Automating everything in your business is essential in building your adequate cloud foundation. Successful cloud innovators need to automate infrastructure processes as code and implement end-to-end application models that can be consumed as code through self-serve experience. Besides, you will need to test the code as your policy and ensure that it meets security, resiliency, and compliance needs. Automation will facilitate your business to meet regulatory requirements and achieve goals safely.
To conclude, the Cloud will be a dominant technology in the future of financial services. Now many companies are in the early stages of modernizing transformation. They still have a long way to go. Failure in digital shifting may lead to a loss of competitiveness in the market. Thus, it is time to show your team to implement practical business projects based on the Cloud.
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