Rory Brown, Managing Partner of Nicklaus Brown & Co., Outlines How Cloud-Based Tools Are Becoming Integral to Virtual Banking
Consumers’ expectations are on the rise as the business world progresses. When it comes to banking, customers expect the standard level of service at a faster speed. More banks are embracing cloud-native architectures for cybernetics to meet the demand for quick and secure service.
Here, Rory Brown reviews how virtual banking platforms can deliver online banking products and services through the use of could technology and data analytics.
It is time for banks to say goodbye to ‘bank-in-a-box’ solutions and hello to the new proactive digital age. Leaders in virtual banking have realized the necessity for cloud-based tools.
A cloud-based platform gives banks the capability to store all information in a single area accessible from any location. Innovators and providers of cloud platforms offer a range of services for virtual banks, which can increase revenue production, help monetize enterprise data assets, curb costs, bring forth consumer sought products quicker to the market, and escalate customer intuition.
As for customer experience, the cloud is pioneering new avenues for clients in developing countries. In the Philippines, where only three out of ten people own a bank account, cloud-based technology reaches the more rural areas of the country. Many individuals living outside of cities did not have access to or the option of maintaining a bank account. Now, a bank that entirely depends on a cloud-based “software as a service” (SaaS) system can guarantee lower costs for customers while providing more convenient and efficient services for those in more remote areas.
How exactly do these cloud-based systems work? First of all, cloud implementation does not require a virtual bank to start relying one hundred percent on the cloud. Providers offer a wide selection of services, and banks can choose options that best suit their needs. Banks on the market should be aware that with every cloud deployment model, data can be equally or more secure than physical alternatives.
Many banks are opting for multi-cloud solutions and customized hybrid platforms. For example, when viewed from a scale perspective, incremental transformation can be measured based on greater scalability and less system control to more system control with less scalability. When choosing greater scalability that gives the system less control, the cloud option leans more towards a public label that provides infrastructure shared by many customers. The next option towards more system-structure reliability would be a hybrid cloud choice that deploys in private with more system control, but scales on public towards greater scalability when needed. A private cloud service is an infrastructure dedicated to one customer with more system control and less scalability.
About Rory Brown
Mr. Rory Brown has focused on financial technology and investment management for 30+ years. Rory Brown Co-Founded one of the world’s first Internet Banks and writes extensively about the industry.