4 Reasons Finance Is Embracing The Cloud
July 27, 2017
The first major public cloud platform became available in 2006, heralding the first wave of cloud adoption. And according to a 2015 survey by Forrester, we are now in the midst of a second wave. This time, after being somewhat tentative in giving up legacy technologies, the finance industry is visibly making its move. Below, we've listed four reasons why finance is finally embracing the cloud.
1. The Cloud Consolidates Increased Data Generated by the IoMT:
The Internet of Moving Things is rapidly expanding. Currently the loMT includes automobiles, personal wearable devices, cell phones, tablets, smart clothes, and smartwatches. The IoMT is causing banks and other organizations in the finance industry to take note of the increased data generated by their individual customers, and the need to more effectively engage with customers through consolidating and responding to that data. For instance, Phil Goldstein's Biztec article describes how bank customers are increasingly using smartphones and tablets to make payments. The article concludes that the financial industry needs to harness its technological infrastructure in order to consolidate the disparate mobile channels that customers are using as they make their transactions.
2. Moving to the Cloud May Reduce Security and Compliance Issues.
Conor Kiernan's Core HR article suggests that financial organizations are now finding that specialized cloud service providers (CSPs) actually improve security over traditional methods. Regulators are making security guidelines and updates available and have increased compliance regulations. Essentially, Kiernan notes, regulators are applying the same standards to the cloud as they are to IT services. As a result, compliance may actually improve for companies that move to the cloud. For an industry in which security and protection of data is a top priority, this possibility provides an extra incentive for the finance industry as a whole to change to cloud services.
3. Moving to the Cloud Promotes Growth.
Nittler's Workday article emphasizes how the cloud can provide analytics that drive decisions on market expansion, as well as decisions for growth within their organizations. For instance, Nittler cites Chief Financial Officer Robynne Sisko of Workday, who claims that the company's cloud-based finance system saves time and simplifies operational processes when it comes to market expansion; "I can configure full procure-to-pay and order-to-cash functionality for a new operating entity in about 30 minutes, eliminating the need for offline accounting and processes," she states. In addition, Nittler includes a quote by David Rae, CEO of Bill Gosling Outsourcing. Rae explains that one benefit of having finance in the cloud is that the company uses its cloud-based analytics to determine how to proceed when it comes to forming marketing expansion plans and to map out opportunities for both employees and clients.
4. Cloud-Based Analytics Assist the Strategic Finance Team.
In addition, Nittler describes how cloud-based systems that come with built-in analytics are a huge benefit to the financial industry. They analyze both real-time and historical data, receiving information on what happened as well as what may happen in the future. In essence, cloud-based analytics allow strategic finance teams to make data-driven decisions which in turn help them meet their goals regarding business demand, market dynamics, and other vital areas of their businesses. With this second wave of cloud adoption in progress, banks and other organizations within the finance industry are taking advantage of the benefits the cloud has to offer, such as the ability to consolidate, analyze, and use customer data from loMT, increase security, and improve compliance. The cloud also provides real-time analytics that drive decisions for strategic financial planning, marketing expansion, and scalability. Access One specializes in providing the most up-to-date telecommunications, data, and IT systems for companies that are ready to make the move to the cloud.