Cloud computing has found a great importance in today’s world. Each and every working sector and even individuals are getting associated with cloud computing, so that they can easily access their documents and save them. Innovative ways are used to implement the cloud application within the system. In order to cope up with the increasing demand, it becomes necessary to develop strategies that will help the banking industry. Thus transferring the system to the cloud computing would be associated with providing assistance to the organization in managing the data along with helping the organization in managing the data as well. Cloud computing helps in accessing and transferring data easily. Banking sector deals with maintaining the cash of their customer. Thus this becomes very much necessary to connect with the cloud server. The cloud computing will help in maintaining the database and will also provide easy backing up the data. The customer and the bank employees can easily access these data and also can share among them for their personal use. Wit transferring the system to the cloud server will also help in time of disasters. As the data stored in this server gets safe and will not have any effect from such activities. The data can be restored and can be used whenever the user wishes to retrieve it. Thus cloud computing will be very much beneficial for the banking sector.
The report is having the aim of discussing about the need of the cloud computing in the banking sector. Cloud computing is a technology that helps the user to access and store their data in the cloud server easily with the help of the internet. These does not require any addition hardware or device, thus will help to manage the cost. The banking sector will be able to cut down the cost, as the need of other system and hardware’s will not be required anymore. There are several models associated with the cloud computing. Implementation of cloud computing helps in coping up with the market needs and also to change according to the customer requirements (Singh et al., 2015). Cloud computing helps in storing the data and allows immediate access with the use of internet. This is the new version of internet and allows easy sharing ad accessing data with the highest speed. The implementation of cloud computing helps in reducing the cost as there will be no need of purchasing high cost system or hardware’s.
The possible disadvantages that are likely to face with the implementation of cloud computing in banking sector are:
The usage of cloud computing is seen in different sectors as well as in the banking sector also which has been made possible by making use of different models. The different kind of cloud service models are associated with providing of different kind of offers to the different kind of banks (Bofondi & Gobbi, 2017). One of the key factors responsible for achieving success is the choosing of the right cloud computing service mode, which would be helping in meeting the demands of the business. Some of the major cloud computing models that are used have been described below along with their functions and deployment process:
Business Process-as-a-Service: Business Process-as-a-Service or the BPaaS is the cloud model, which is generally used in order to have the business processes, and this processes mainly includes the billing, payrole or the human resources. Besides this model is also having the capability of combining the different kind of services models in accordance to their expertise (Vives, 2017). .
Software as-a-Service or the SaaS: This is the second cloud computing model which is generally provided by the service provider in order to have a good management of the different business software. This is also used for managing the data related to the business along with the access of the users to specific service or data and this is generally done by making use of the browser. The various kinds of devices that are generally provided mainly includes the CRM, ERP, Invoicing, Human resources, management of contents, accounting and management of the service desk.
Platform-as-a-Service or the PaaS: This is generally provided by the service providers of cloud and is considered to be a complete platform which is provided for the development of the application, interface, development of the database, along with the storage and the testing as well (Callender et al. 2015). . This in turn s associated with allowing the businesses to streamline the development along ith the maintenance and the proving the customers with support. This in turn is responsible for lowering the costs related to IT along with the minimization of the need of hardware, software and the environment for hosting.
Infrastructure-as-a-Service or the IaaS: Another service model which is associated with allowing the businesses to purchase certain resources which would be acting as a fully outsourced service and this is to be done so as to replace the purchasing of the extra servers, software, data center space or network equipment (Yu et al., 2015).
Besides the Cloud Deployment Model, there are 3 different way which has been adopted by the service providers for the purpose of deploying the cloud and this mainly includes the following:
Private cloud: IN this type of process the operations of the cloud infrastructure is very unique for certain industries. This type of clouds might be governed by the organization or by one of the third party. Besides this, the private cloud might be prevailing inside or outside the premises. In addition to this, the private cloud computing is generally considered to be the most impregnable amongst all the other cloud choice (Sharma & Al-Muharrami, 2018).
Public Cloud: This type of cloud is generally attainable by a common public or a large industry group besides this it is generally governed by an organization that is associated with the trading of the cloud services.
Hybrid cloud: This is the cloud infrastructure that is consisting of two or more clouds, which are associated with remaining as a solo entity, and besides this they are also associated with the administration of the services (Owusu-Tucker & Stacey, 2018).
Determination of the appropriate operating model is generally considered to be the third aspect related to the selection of the proper cloud services delivery model and this generally to be done for the mixture of the required resources and the assets. Below are the three major operating models for the cloud services has been listed below:
Staff augmentation: The banking industries are capable of gaining a cloud expertise, which is generally to be done by the hiring of the peoples who are having the right skills from the service vendors (Alhaj& Aljawarneh, 2017). This is the operating model, which is associated with allowing lot of flexibility along with letting the firm to select the best resource with respect to each of the specified requirements.
Virtual captives.: Virtual captives is generally considered to be cloud operating model which is having a pool of resources that is entirely dedicate or the centers that would be helping in conducting the various operations of the cloud along with meeting the demands as well. This is also considered to be a good alternative and besides this it would also be helping in completing the approach related to outsourcing (Thakur, Kumar, & Yadav, 2014).
Outsourcing vendors: in this type of approach which is associated with the usage of the different offshore centres along with the facilities (Haimes et al,. 2015). In addition to this peoples from the third party vendors are also used so as to handle the various operations of the cloud. In this, model combining of the resources as well as the investments so as to provide cloud services to the different kind of banks.
Some of the major advantages of cloud computing usage by the banking industry has been listed below:
Cost Saving: the amount of incurred cost helps in the determination of the sharpness of the business. In today’s world there exists only a few number of cost effective public cloud computing solution, which are perceptual and are self-service-biased. The public cloud vendors are associated with providing of low cost price advertisements which are generally associated with inspiring the IT departments so as to have an insight regarding upon the allocation of resources, cost and the different kind of cloud models and this mainly includes the public, private as well as the hybrid clouds (Haimes et al,. 2015). In a bank billing is generally considered to be a non-core process for the banks. However, this is also associated with the outsourcing of this to the less expensive mediators, which would be allowing the clouds to route the capitals towards the core technology based functions.
Scalability: Whenever a cloud is designed in a proper way, then it would be associated with empowering the bank in meeting the demands of customer in an easy way. Besides this a well-designed cloud is also associated with quick scaling of the customer demands. In addition to this provisioning of the different resources related to computing can be provisioned in a dynamic way. The implementation of a well-defined clod would be saving the users of the business as the IT professionals from the work load during the peak times (Chatterjee, 2017). Tackling of the different kind of challenges related to the security and privacy of the data by the Banks can be done by making use of the hybrid clouds. This are the type of clouds in which the data precise in nature can reside in the private cloud, whereas the different computing powers are seen to be available in the public clouds.
Time to market: BY making use of the cloud computing, this is generally considered to be the market which can be curtailed from months to weeks or days, and this generally dependent upon the banks size. Help is provided by the self-service based, on-demand and real-time monitoring in different ways which mainly includes the following
Data Virtualization: Data virtualization is generally considered to be the assimilation of data from numerous as well as from the different kind of sources present all across the enterprise or external sources (Tebaa, Zkik & El Hajji, 2015). This is to be done for the consumptions according to the demands related to consumption by carious kind of applications that are present in virtualized way. The various kinds of mandates related to the banks regulations and performance, which generally requires a data virtualization strategy (Malkawi, Obeidat, & Halasa, 2017). Besides this, the strategy can also be provided by one of the single source related to the single source of reference data, and this might be including the security master data. Besides this the calculation of the risk and analytics is generally dependent upon the various kind of data from vriosu sources and this might be including the relational as well as the semi-structured XML. By Combining, this kind of discordant data received from the public and private domains is generally considered to be a test. In a similar way, accessing this kind of data from one of the single virtual source is also associated with driving the scores of consolidated data from the banks.
Mobility: In most of the corporate sectors of the world, it is seen that the workers are techno savvy and besides this, they are also associated with the accessing of the risk and providing of the analytics reports while they are in a moving condition (Srivastava, U., & Gopalkrishnan, S. (2015). . In order to record the benefits related to the assessing of the internet by making use of the smart phones and Ipad‘s in an instantaneous way even for the locations which are remote. Besides this in a similar way, they also require similar interfaces so as to have banking services-specific applications. Along with this as the cloud are associated with facilitating the users in order to access the different systems as well as the infrastructure which makes use of the web browser or customized clients is done without taking into account of the location as well as the time. In today’s world, it is seen that the advancement of this kind of interfaces has been initiated so as to take a certain shape (Zineldin, M., & Vasicheva, V. (2015). .
As time passes by it is necessary for the banking sector, to typically leverage the Hybrid Cloud architecture and this is to be done so as to realize the different kind of benefits which mainly includes the cost, speed, and efficiency. Besides this it would also be associated with the balancing of the requirements which mainly includes the security, compliance, quality of service present across the different business functions (Islam, Islam, & Beg, 2015) (Islam, Islam, & Beg, 2015). Along with this is also recommended that the usage of the hybrid cloud model would be associated with enables banks to gain a larger number of benefits from the cloud computing. This would be done along with proper maintenance of the security as well as the confidentiality of their data. So it is essential for the Banks to adopt certain practical approach needed for the security and privacy of the data stored in the cloud. It is generally observed that most of the data are segmented in accordance to the various levels. In a similar way it is seen that the banking sector is also associated with the implementation of the cloud. In a similar way, there is also a need of implementing the clouds in the banks to a proper and appropriate security. Banking organizations have been associated with initiating the process of adopting the new cloud-computing technologies in a number of ways, and this involves the usage of the different mobile applications along with the testing in an innovative way as well as micro- banking (Oliveira, Thomas, & Espadanal, 2014).
Mobile banking: In case related to the online banking it is seen that the customer present around the online banking are associated with delivering the partners in order to check the balance or for ordering stop payment orders.
New service R&D: Banking services Organizations is also responsible for having an increase in the number of advance computing power that is generally provided to the cloud services so as to conduct the research and delivering of the computing power related to the specific testing of the services before getting involved with the production (Asadi et al., 2017)
Conclusion
From the above report, it can be concluded that with the growing demand in the market, this becomes very much necessary to adopt new technologies. Cloud computing is the best way to share information and provided best storage of the data with the use of internet. Cloud computing has found a great importance in today’s market. Thus implementing cloud computing in the banking sector will help the banking department in maintain the records efficiently and will also improve their service. As this is based on technology, so les human power is required but with better knowledge. This report has discussed the importance of cloud computing in the banking sector. The later part of the report has critically analyzed the research questions. Also the future of these technology in the banking sector is being discussed. Thus from the above report it can be concluded that cloud computing will help in improving the service provided by the banking sector.
References:
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