Many financial firms have invested heavily in their own infrastructures and internal software development. While many industries have embraced cloud computing, banks and other financial institutions are slow to adopt SaaS (Software-as-a-Service) into their operations, perhaps for fear of exposing data. But this is outdated thinking. Considering the advances in cloud computing, now is a good time to explore the rewards that SaaS can provide.
Reducing expenses and improving profitability is crucial to any business. Using applications accessed over the internet means that financial companies don’t need to invest in hardware and software purchases. There’s no need to hire additional IT staff to perform installations, upgrades, or resolve issues. SaaS typically involves a pay-on-demand service model so companies can easily budget for their needs.
Scalable, Flexible, Reliable
Cloud providers allow banks and other financial services to add or subtract software tools to satisfy current technology requirements. Financial companies can also upgrade or downgrade the scope of their services easily as the company grows and changes. The ability to meet changing needs quickly and affordably is a strong competitive advantage. As a separate business entity, the SaaS provider is committed to satisfying their own clients with a range of quality services.
An SaaS provider has superior technical teams and hardware already in place. Busy financial institutions will be able to achieve greater efficiency ratings through smoother operations. The standard protocols involved in operating over the cloud provide a broader platform for integrating new technologies and applications. Because common technologies and business operations are aligned, SaaS provides an opportunity to reduce complexity and improve communications.
Faster Client Service
Software development is normally a slow, iterative process. SaaS makes it easier to develop and introduce new or bundled products, both as a stand-alone service or in partnership with associates. There are no delays in purchasing and configuring hardware or software. Banks can increase computing power to meet a sudden rise in demand and offer the latest financial solutions without worrying about whether technology is updated and in compliance. Remote workers can access the same systems anytime and from anywhere.
Better Client Relationships
A combination of big data and greater computing power allows banks to put together analytic systems according to their own need. That gives financial institutions the opportunity to discover more insights into market trends and client behavior and expectations. Management can then make better decisions and predictions to serve their clients. Services become more personalized for a better client experience.
Customized central services can bring banking clients closer to their own clients. More efficient and responsive transaction processing eases payments suppliers and purchasers. Even up to the present time, the infrastructure needed to process payments can be inefficient because both sides are using very different technologies. But these disparate system can work together smoothly over the cloud. Clients can also more easily and safely access their own information from wherever they happen to be.
In many business operations such as mergers and acquisitions, complete confidentiality is required. What used to require a physically secured room, travel, meetings, and a ton of paperwork is now done online through a virtual data room (VDR). Involved parties are given temporary access to shared files and documents over a secured virtual private network. This makes these types of transactions much faster, cheaper, and more convenient. Most cloud providers to the financial industry include VDRs among their services, further lowering the expense and expediting the process.
SaaS is more effective from an IT and management standpoint because there are fewer technical issues to worry over. Financial executives don’t need to worry about procuring and installing the right hardware or software, maintaining systems through patches or testing, or providing security measures. The SaaS vendor includes all of this in the service they provide. Whether a bank is offering an online portal to make payments or hosting venture capital transactions in a virtual data room, a comprehensive and secure solution is already available.
SaaS vendors as an industry are constantly providing more and better services to stay competitive. By taking advantage of this, financial institutions can continue to evolve and scale-out their infrastructures with minimal costs and concerns.