Banks in different parts of the globe are now using new digital technologies to satisfy higher customer demands and to respond rapidly to the new business environment. One of the best innovations is the shift to cloud-based storage and processing platforms, like SAP Banking, for financial applications.
According to the famous industry analyst, Gartner, over 50% of banks will process most of their transactions in the cloud from the early part of 2017. This means that account updates, deposits and withdrawals, as well as credit and loan processing, will be done in the cloud. So the other financial institutions, including microlenders who help customers that need assistance on how to get a business loan should do their best to adopt cloud-based technologies if they don’t want to be left behind.
Cloud Solutions Reduce Cost and Boost Innovation
Over 90 percent of financial service chief executives, who responded to a SAP benchmark survey, believe that cloud solutions will turn around their institutions. When financial institutions move their core banking systems to the cloud, they can focus their resources on getting a deeper understanding and serving customers instead of maintaining integrations to their legacy systems.
Cloud-Based Systems Offer a Real Time 360-degree View
Working with a single cloud-based system enables financial institutions to create a window into their operational and customer data. This offers them an instant view of customer activity and removes all the bottlenecks involved in giving customers access to their account information. Cloud solutions like SAP for Banking allow a consolidation of data so clients do not have to wait for 48 hours to receive their account number, ATM card and other important account information after opening an account.
Cloud Solutions Reduce System Maintenance Costs
A major benefit of transferring all core banking systems to the cloud is the drastic reduction in maintenance costs. So banks can focus their spending on innovations that increase customer satisfaction and business expansion. For instance, a prominent bank in New York improved their capacity to innovate and reduce their data center energy consumption while eliminating manual patching, after adopting cloud-based technology.
Connect CRM and ERP in Real Time
Moving from legacy systems to the cloud allows banks to break away from the limitations of obsolete technology and open up to a new data-driven world. This data can be aggregated and analyzed to provide the type of information that will make it possible to anticipate and provide a faster response to customer demands. For instance, customers of banks and other financial institutions that use these cloud-based systems can see the full results of their transactions instantly. This helps to maintain transaction security and accuracy.
Those are some of the key benefits that financial institutions can gain from moving their major operations to the cloud. Cloud-based banking operations will offer better customer satisfaction and reduce the burden created by maintaining very old legacy systems.