Using Cloud Technology in the Financial Industry
What is Cloud technology and what does it mean for the financial industry? The Financial Service Industry Association (FSIA) coined the term Cloud computing. This cloud technology platform is an easy way to access information and to process transactions. This is great for financial service institutions that need to process a large amount of data, and want it accessible from any internet connected computer. When using this type of computing services, the Financial Service Industry Association defines Cloud computing as:
Cloud computing is becoming more important for financial institutions because of how rapidly the financial industry is growing. In fact, by the end of 2021 the financial service industry will be the largest employer within the United States. It will continue to grow and expand with new job opportunities for people with a variety of different backgrounds. As the industry continues to grow and expands, the need for trained professionals will also be increasing. As well, many of the financial institutions currently outsources certain aspects of their computing needs to third parties.
In order to meet the needs of financial institutions, many different types of software programs are being created. Some of these programs are being created internally by financial institutions, while others are being developed by third party software programs. If you are in a position where you are trying to find a way to streamline your business processes or make things more efficient, then cloud technology could very well be the right solution. Here are some common uses for cloud computing in the financial sector.
Software Development. Because technology in the financial industry continues to grow, so does the need for software developers. When companies create proprietary applications for financial institutions, then they need a programmer or a team of programmers who can create these applications. Because there are so many different areas that a developer can focus on within a company, they can be very difficult to replace if a company is struggling.
Billing and Accounts Payable Services. Many companies provide their customers with bill and payable services. These services include credit card processing, employee payroll services and other employee benefits services. Without these services, the company would be unable to process the credit cards and debit cards of their customers. However, if these services were provided through a third party company, then the financial institution would not need to hire as many employees.
Customer Service and Website Management. Financial companies need to be sure that they provide the best customer service possible. Without an effective website, the company’s customers may have difficulty finding information about the company or acquiring any of the services that the company offers. By using cloud technology, a company can greatly improve its customer service system by outsourcing to a third party company who provides website management and other internet based services. By outsourcing to a cloud service provider, a financial company can reduce its cost structure, as well as its operational costs, which can lead to significant profit improvements.
Invoice Filing and Accounting. Every financial transaction in a company is interrelated and requires the use of accounting software. A traditional business may not have the resources to maintain its own accounting software, which can significantly slow down the process of completing financial transactions. An example of this would be the bank’s inability to process electronic checks. By using cloud technology, a financial firm can greatly improve its ability to process electronic checks by outsourcing to a cloud service provider who maintains a comprehensive inventory of all accounting software applications and can meet the demands of any particular business by providing only the specific accounting software that the company requires.
There are many more uses for cloud technology in the financial sector. A company only has to invest in cloud technology and its infrastructure to start seeing the benefits immediately. This is advantageous for the company because it enables the company to take advantage of the latest advancements in technology while minimizing its investments, which can ultimately lead to increased profitability and financial growth.