5 benefits of cloud computing in finance
06 July 2021
Usage of cloud computing in finance has skyrocketed throughout the pandemic and is showing no sign of slowing down anytime soon. The shift to remote working has resulted in more financial businesses utilising cloud-based technologies than ever before, with a staggering 89% of banks reporting that they are currently operating with or planning to operate with a hybrid cloud solution, according to the IDC's 2020 CloudPath survey.
For many firms, COVID-19 meant companies had to adapt to facilitate working from home, causing the vast majority of businesses to turn to cloud computing in order to keep internal operations running throughout the unprecedented times.
Acting as a springboard of digitalisation for the industry, a recent Accenture study found that investment of the cloud in financial services has increased substantially during the pandemic and predicts it will continue to grow at a rate of around 15% through 2022.
A particular area that is reaping the benefits of advancing cloud technology is financial disclosure. Accountants are saying goodbye to the annual headaches of financial disclosure statements by automating and streamlining the process with cloud-based technologies such as Pentana Disclose.
So, what exactly are the benefits of the cloud in the financial services sector?
When implemented correctly along with measures such as employee training and controlled access, the cloud can provide your business with essential advanced security standards. Zero-trust verification and encrypted data have increased cloud security whilst tracked records can provide robust audit trails throughout.
Complying with all applicable accounting standards and legislative constraints can be an extremely difficult and daunting task for any financial firm. Cloud-based technologies help to ensure compliance by keeping up to date with the latest requirements and standards.
Better data management
Data management is vital in the finance industry since accountants must process and store vast amounts of sensitive information daily. Therefore, it is crucial to have a cloud-based solution that allows for large quantities of data to be stored securely whilst being made accessible at any given time and location based on defined user access permissions.
The finance industry is growing bigger every day and its rapid development is going to need a robust infrastructure alongside it. Cloud technology provides the dexterity to scale relatively to meet the evolving demands of the sector. Data storage capacity, processing power and networking can all be easily upgraded to keep up with the needs of modern-day accounting.
Given the current push for companies to place stronger importance on ESG, it is crucial companies improve their office sustainability in order to do their bit for climate change. Cloud technologies are more environmentally friendly due to the paperless nature, resulting in less of a carbon footprint for your company.
To find out more about the cloud and discover the other benefits of cloud computing in finance, download our whitepaper now.