The Value of the Cloud in Financial Services

Cloud-based services are known to be driving operational efficiency and significantly decrease costs of running any business. With financial services, however, the journey to the cloud has been more complicated than for other industries due to a variety of reasons, risk management and security concerns being some of them. Nonetheless, the evolution of IT infrastructure is underway and financial services companies are aggressively exploring opportunities.

Large financial institutions around the world have turned to cloud services for a variety of purposes and found the move to be highly advantageous. One of the largest banks in Spain, Bankinter, for example, is using AWS to run credit risk simulations in 20 minutes, down from 23 hours before. For the Commonwealth Bank of Australia, the cloud has reduced the time and cost of standing up a new server from eight weeks and several thousand dollars to eight minutes and 25 cents, making the bank much more responsive to changing customer demands.

A range of examples that we will be exploring further demonstrate the value of cloud services for the financial services industry. The division of purposes is not always possible because of the complex benefits achieved by migrating the infrastructure to the cloud, such as flexible and efficient utilization of infrastructure investments, faster deployment of physical and virtual resources, higher application service levels, less administrative overhead, lower infrastructure, energy, and facility costs and increased security.

Don Duet, Global Head of the Technology Division at Goldman Sachs, has recently discussed the evolution of the firm’s digital strategy and its use of cloud infrastructure and technologies, saying, As macro forces like open-source software and cloud architectures have created more opportunity to innovate at a higher pace and lower cost, we’ve seen a general movement in the industry toward digital frameworks and digital business models.

The cloud has been part of Goldman Sachs infrastructure for years now and Duet explains the beginning of the journey with the goal to be more responsive to meeting business demands and drive do ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 7 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.