Financial institutions, big and small such as banks, SACCOs and MFIs are seeking cloud solutions due to the capabilities it has.Unlike the traditional manual or on premise systems, cloud solutions for financial institutions continue to prove more efficient over time.
Among the benefits of cloud based solutions are;
Cloud computing means that institutions do not have to invest heavily on hardware, software and/or manpower. The technology allows institutions to pay for services they use only hence reduce the cost of operations. In addition, the initial set up fee is also friendly
Products and services are easier to launch on cloud. This eliminates procurement delays for software and hardware. As a result, institutions move fast to release products and services according to the market demands.
Additionally, the ability to access all the relevant accounts and information make service to clients much faster than traditional systems. For instance, some solutions such as Jisort Cloud systems come with a mobile application that allows clients to access their accounts and get their statements or check balances.
Cloud can be accessed anywhere, anytime. This makes it easy for personnel to attend to clients/ issues anytime need arises.
The technology allows automation of processes such as application, disbursement and payment, credit assessment, data analytics and report generation. This works to the advantage of both the institution and their clients.
For large institutions, collaboration of activities is also easen through cloud technology. For instance, all branches are managed in one system and decision makers can easily access the reports for each branch.
Cloud technology has the ability to handle huge amounts of data compared to traditional (banking) systems.
However, concerns about data security have raised. Cloud based solution providers have over time improved on the security standards of their solutions/ software.
The cloud adoption rate is gradually increasing, globally. With time, the it’s benefits will be too conspicuous to ignore. Institutions that fail to adapt to the change and adoption of cloud solutions are at a risk of losing business over time.
In conclusion, cloud-based software for financial institutions has revolutionized the entire banking industry bringing immense relief to both the institutions and their clients. From reducing costs to flexibility, these are some of the sought after goals that financial institutions should not miss out on.