BFSI VISION Cloud Computing

   
 


Nilesh Marathe

Director Solutions, India &
Middle East Aspect Software.

Adopting cloud services

Cloud as a platform provides benefits like agility and cost effectiveness to an organization. But it depends on the industry one operates in that decides which all applications can be migrated to cloud. If we observe closely, banks have not always been early adopters of new technologies. The key reason for this is the fact that Banks are working on and with the public's money. There has to be complete assurance on security of people's money as well as their information. In India, banks are needed to get approvals from regulatory bodies like RBI, SEBI, etc. before deploying any new technologies or systems that impacts bank's functioning or customers.

But Banks too need to reap in the benefits of emerging technologies which even after stringent regulatory tests, once approved can help them save costs and enhance productivity. Cloud is one such adoption we are witnessing today. With the adoption of cloud, there is a reduction in costs for banks to invest heavily in new hardware and software. The nature of cloud is such that it allows the banks to pick and choose services with benefit of pay-as-you-go basis thus helping them expand and extend newer services to their customers. Cloud provides agility, elasticity, flexibility to the institutions to scale up or scale down IT infrastructure based on the business demand.

One of the main concerns with adoption of cloud in the BFSI space is the security of data. To thwart this risk banks can opt for a well-managed combination of both public and private clouds. Banks can store and access low level or low risk data on a public cloud, whereas, highly sensitive data can be stored on a private cloud set up on internal servers.

The latest trends in the evolution of cloud computing in the BFSI space are mobile applications, innovation testing and micro-banking. Mobile applications are well suited to be run on cloud as it is not feasible to connect them directly to internal servers. Micro banking the other major trend seen in developing countries is where micro banks are running their entire business on cloud computing.