The Importance of Cloud Computing in Profitability and Cost Reduction for Banks

1. The Importance of Cloud Computing in Profitability and Cost Reduction for Banks ©Copyright by Jmrinfotech.com

2. Delivering computer services – such as Flexcube storage, databases, and networking – via the Internet to enable speedier innovation, flexible resources, and economies of scale, cloud computing is known as "cloud computing." Firms of all sizes may benefit greatly from the cloud's agility and reduced reliance on local storage. ©Copyright by Jmrinfotech.com

3. Consequently, IT professionals, C-suite executives, and members of corporate boards are increasingly turning their attention to cloud computing. According to experts in the banking and capital markets industries, the cloud is more than technology; it is a place where financial institutions may store their data as well as access innovative software applications through the Internet. ©Copyright by Jmrinfotech.com

4. To this end, according to a recent survey, many top banks are aware that cloud computing with Oracle Flexcube offers numerous other advantages in addition to savings. The survey found that although 48 percent of banks anticipate cloud computing to result in cost savings in the next two years, the same number or more believe it will result in revenue growth. ©Copyright by Jmrinfotech.com

5. Around 66 percent of banks expect that cloud advantages will immediately involve increased revenue – and, as a result, 47 percent believe that cloud benefits will result in increased profitability. Meanwhile, the percentage of professionals (including capital markets and insurance executives) who believe that the cloud will increase revenues has increased to 62 percent throughout the financial services industry. ©Copyright by Jmrinfotech.com

6. In reality, companies that have already incorporated cloud computing have already seen significant benefits as a result of Oracle Flexcube universal banking. In the three years after installation, only a small number of financial institutions claimed that the cloud had no effect on their income. In the banking or capital markets, just 7 percent of executives claimed there had been no relevant change in revenue, whereas 15 percent anticipated that revenue would have climbed by between 6 and 10 percent. ©Copyright by Jmrinfotech.com

7. Even so, businesses may still be underestimating the value of the cloud. According to industry experts, financial services businesses often do not take into account the entire cost advantages when calculating the return on investment in cloud computing. ©Copyright by Jmrinfotech.com

8. Fewer than 40% of respondents indicated advantages related to lower non-IT expenditures. Even fewer mentioned benefits related to a smaller carbon footprint, a shorter time to market, or increased productivity. ©Copyright by Jmrinfotech.com

9. Conclusion • In the short term, cloud computing using Oracle Flexcube 14.x saves banks money. Still, recent research reveals that the long term benefit of cloud computing is increased profitability. More than half of those in charge of financial services say that using cloud technology would lead to higher revenues in the future. ©Copyright by Jmrinfotech.com