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