Cloud Computing Drives Efficiency
Technology is changing at a faster rate today than ever before. New systems, applications and software are continually being implemented, more bankers are working remotely and the amount of stored data is rapidly increasing. These changes make it challenging for banks to keep their information technology systems current, secure, reliable and regulatory compliant.
Cloud computing lets banks keep their technology infrastructure current and have the flexibility to add employees, applications and new locations without large fixed-asset expenditures. Banks have better security, enhanced reliability and improved regulatory compliance with the specific processes and procedures built into top-tier, banking specific cloud providers. Banks could not obtain the same efficient processes and procedures on their own or from a generic cloud-based provider that serves multiple industries.
Banks utilizing banking industry specific cloud computing services also experience improved efficiency. This is due to several factors:
1. Processes and procedures - An example of this is documentation of technical issues and their resolution. The cost of a ticket management system to track and document every IT issue at a bank with two or three locations and a staff of 60 employees would most likely not be worth the investment for a bank. However, a banking industry specific cloud provider is going to have such a system because it drives efficiency. By being able to quickly recognize issues at a single bank, or issues occurring across multiple banks using the same applications, (such as the same teller system) the cloud service firm can identify and resolve the issue faster with these tools.
2. Greater technical knowledge - A cloud provider strictly focused on the banking industry will have more knowledge about banking systems than bank staff or a generic cloud vendor. Industry specific cloud providers are exposed to more issues in a single day than a single bank or generic vendor experiences in a year. Individual banks benefit from the experiences that all of the cloud provider’s client banks have because all of these experiences are documented and used to benefit everyone in the group.
3. Enhanced Reliability and Disaster Recovery - Many community banks simply do not have the resources to build secure data centers for their information technology systems and then duplicate them to have as a disaster recovery site. Banking cloud providers do this because the risk of being down or offline is simply too great, and because the additional costs can be spread across a large number of users. This allows the bank to have a better product at the same or less cost than what they currently have.
4. Increased Regulatory Support - Regulators are focusing on cybersecurity issues, and each community bank has to address regulatory releases such as the FFIEC Inherent Risk Assessment. A banking specific cloud provider not only has technical staff but has staff that is able to address new regulatory issues. They can help the bank by either performing the process for them or providing guidance on the best way to meet the regulatory guidelines. Banks spends less time and money by using a banking cloud provider for this solution than they do by developing a solution on their own.
Standards and Processes in Bankers Private Cloud® Create Efficiency
BankOnIT’s Bankers Private Cloud® is a top-tier cloud solution that specializes in the banking industry. BankOnIT’s Bankers Private Cloud® provides all of the resources bankers need now and in the future. Bankers Private Cloud® is a proven service with standards and policies built in to meet the security, reliability and regulatory requirements banks have. All of the features (servers, installation, backups, updates, monitoring & management, polices, regulatory support, etc…) are built in and provided at a fixed rate, allowing bankers to reduce unexpected expenses and budget more accurately. That’s why banks utilizing the Bankers Private Cloud® experienced a 33 percent higher ROE in 2014 than community banks as a whole.
IT results are delivered faster, with better security, more reliability and improved regulatory compliance because BankOnIT’s standards and processes have been in place and used thousands of times. This allows employees to work more efficiently, while reducing the amount of time spent on IT and increasing banks’ information security.
Knowing the right questions to ask to keep up-to-date on technical and regulatory changes is essential. To learn more about how standardizing your bank’s information technology systems can lead to better performance, or for more information, please contact us at 800-498-8877 or firstname.lastname@example.org.