The banking industry will be very different in 2030 than it is today. Fintech creates numerous opportunities for institutions to personalize, expand, and improve their service offerings in local, regional, and national approaches.
Cloud computing is going to be part of that conversation. According to Deltec Bank, Bahamas-“The focus of the banking industry might be on blockchain development and tokenization right now, but new business frontiers are still possible when using the cloud because it is more than a technology. It is also a destination.”
Banks and credit unions can access a wide range of innovative and fully implementable PaaS (products-as-a-service) options to improve revenue generation, increase data insights, and limit costs.
The cloud makes it easier for financial institutions to deliver products relevant to their marketplace with greater efficiency while monetizing their data assets.
What Are the Future Benefits of Using the Cloud?
The most visible benefit of using the cloud is a reduction in infrastructure costs. Financial institutions can avoid the requirement to improve or increase their IT resources because their tech needs are instantly scalable. It allows banks and credit unions to avoid trying to buy and install equipment, hire new staff, and experience time delays trying to make it all work.
Many of the future benefits of using the cloud in 2030 will be the same as they are today – just at a higher level.
1. It improves performance and reliability.
Streamlining technology opportunities makes it easier to be compliant with banking regulations. Hosting data on the cloud gives an institution a faster and easily accessible way to have real-time information updates that can meet these future challenges. Our world is already moving fast, which means customer expectations are going to much higher in the future. This tech allows financial institutions to operate at the speed of their industry.
2. Data security improvements occur.
The consequences of a data breach today are already severe. Imagine what they will be in 2030? It could be a problem that would cost potentially billions of dollars in fines and lost revenues. Cloud computing creates a reasonable solution because most information leaks occur within an on-premise system. Service providers are more likely to provide state-of-the-art equipment for institutions to use so that reasonable safeguards are in place. Then consumers can have confidence in their data management, knowing that accessing it is a challenge for someone with nefarious intentions.
3. It removes the repetitive tasks.
Banks must focus on value-adding tasks to remain competitive in 2030. The institutions that experience the most growth will be the ones that look at growth opportunities instead of resolving backlogged IT tasks. The maintenance requirements of on-premise systems can consume up to 50% of an IT team’s time, even for a small business. Moving to the cloud can free up numerous resources that can be put to better use.
Banks might not see cloud-based technologies as a top priority today with tokenization and blockchain dominating the conversation, but this approach is becoming more important with each passing day. Those who do not pay attention to its benefits may find themselves out-of-business by the time 2030 comes around.
Disclaimer: The author of this text, Robin Trehan, has an undergraduate degree in Economics, Masters in international business and finance and an MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.