Benefits of Cloud Computing in Banking and Finance:

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• Cost-effective:

Cloud computing allows the bankers to save capital expenditure involved in establishing IT infrastructure for varying IT needs. A huge load of capital expenditure is converted into comparatively nominal operating expenses. This allows banks and financial institutions to focus on core banking functions and leave IT complications to experts.

• Reliability:

The cloud infrastructure is highly reliable. By opting for private or hybrid cloud model it is possible for banks to secure their data while enjoying the speed and flexibility of the cloud. Even in the case of public clouds, the data can be encrypted and additional layers of security like permission-based access can be added to boost the level of security. No to forget that the data remains safe from many internal security threats.

• Flexibility:

The major reason accounting for the popularity of cloud is its pay-as-you-use billing model. This means that you will only need to pay for the resource you use. Banks and other financial service providers can manage the spikes in demand without investing in expensive in-house computing power, much of which would go unutilized under normal conditions. In case of cloud, it is also easier to pivot from one application to another making it a flexible choice.