# The benefits of adopting cloud technology in the finance industry
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-04
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: How Cloud Technology is Transforming the Finance Industry
Meta Description: Discover how the cloud is helping the finance industry enhance security, boost revenue, and increase productivity. Learn more from Drew Firment at Pluralsight.
URL: https://financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industryhtml

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Drew Firment

_By **Drew Firment,** Vice President of Enterprise Strategies at Pluralsight_

The finance industry is on its way through a digital transformation journey, with high-street banks looking to modernise in order to compete with digital challengers. The cloud has an important [role to play](https://www.financedigest.com/why-the-bank-branch-still-has-a-role-to-play-for-consumers.html "Why the bank branch still has a role to play for consumers") in achieving this. It supports greater scalability as developers can build bigger systems faster and more easily than before, and with technology like zero-trust verification, it can also enhance security and protect banks against [cyber threats](https://www.financedigest.com/cyber-threats-for-finance-organisations-to-watch-in-2023.html "Cyber threats for finance organisations to watch in 2023").

The [cloud can offer](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds") increased compliance with legislation and more effective data management too, which is particularly vital for an industry that processes and stores vast amounts of sensitive information every day.

As a result, the cloud has become an important tool to help the [banking and finance industry](https://www.financedigest.com/the-survival-of-the-banking-industry.html "THE SURVIVAL OF THE BANKING INDUSTRY") boost revenue, enhance productivity and stay competitive. In fact, [100% of financial services companies](https://moduscreate.com/blog/financial-firms-and-the-cloud/) that have migrated to the cloud saw the benefits after only 6 months.

**[Increasing productivity and scaling](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") with the cloud**

[Software is defined as anything that makes a piece of hardware perform](https://www.financedigest.com/how-to-use-momentum-analytics-software-to-improve-portfolio-performance.html "How to use momentum analytics software to improve portfolio performance") a function. It can be very programmatic – which means it requires specialised and complicated programming languages. In fact, developers need between [4 and 9 months](https://soltech.net/how-long-does-it-take-to-build-custom-software/) to create a piece of software.

But as the [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") is looking to digitally transform at pace, and bring new services to market for customers, developers need to create efficient programs quickly, and cut down this timeline where possible.

The cloud has a role to play here, as it gives access to a range of [powerful tools that help build](https://www.financedigest.com/public-power-corp-rwe-to-build-five-solar-farms-in-greece.html "Public Power Corp, RWE to build five solar farms in Greece") bigger systems faster and more easily than before. With cloud, developers in the finance industry have the opportunity to create the infrastructure needed for a [growing industry quickly](https://www.financedigest.com/4-strategies-for-quickly-growing-your-startup.html "4 Strategies for Quickly Growing Your Startup"), without having to build everything from scratch.

A good example is functions. The first thing most developers think of when they hear “serverless” is functions. But the functions running code are just a tiny piece of the puzzle. Serverless [technology allows development teams to hand off as much work as they can to cloud](https://www.financedigest.com/7-ways-cloud-technology-can-transform-business-finances.html "7 ways cloud technology can transform business finances") platforms like Azure, Amazon Web Services (AWS), and Google Cloud Platform (GCP).

Developers no longer have to write their own code as the [building blocks already exist in their cloud](https://www.financedigest.com/reckon-one-builds-momentum-with-strong-backing-from-accountants-joining-the-cloud-advisor-programme.html "Reckon One builds momentum with strong backing from accountants joining the Cloud Advisor Programme") platform. Take, for example, Azure’s Durable Functions feature. This feature manages workflows so [teams don’t need](https://www.financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-data.html "Why finance teams need to go beyond numbers to an active relationship with data ") to explicitly create, store, and retrieve the progress through the data’s workflow in some other place. This [process is so common to the systems that teams build](https://www.financedigest.com/li-cycle-to-build-french-battery-processing-facility.html "Li-Cycle to build French battery processing facility") that the cloud providers made it available without needing developers to write lines of code.

**Securing the business, and better** [managing data](https://www.financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experience.html "Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience")

Using cloud technology also allows for better [data management and  security](https://www.financedigest.com/assurance-v-security-reassessing-responsibility-for-data-assurance.html "Assurance v Security: Reassessing Responsibility for Data Assurance") standards. With a cloud-based system, finance organisations can ensure that sensitive data is encrypted, and is [protected in a more robust and powerful way than on-premises data](https://www.financedigest.com/4-steps-you-should-be-taking-to-protect-data.html "4 Steps You Should Be Taking To Protect Data") storage. For example, with consistent security updates, AI tools like algorithms and built-in firewalls ensure the vast amount of data held by [finance organisations and accessed](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017") daily is as secure as possible from cyber criminals.

**Cloud [technology helps financial](https://www.financedigest.com/financial-firms-can-use-technology-combat-todays-cybercriminals.html "How financial firms can use technology to combat today’s cybercriminals") services companies be more competitive**

As cloud computing makes it easier for developers to create software quickly, it also frees up [time to focus](https://www.financedigest.com/why-manufacturers-mustnt-lose-their-green-focus-in-troubled-times.html "WHY MANUFACTURERS MUSTN’T LOSE THEIR GREEN FOCUS IN TROUBLED TIMES") on the quality of the product rather than just the delivery. Developers no longer need to think about when they will deliver the product; instead they can simply dedicate time to determining how to make the end product as [effective as possible](https://www.financedigest.com/the-brexit-effect-hits-uk-salaries-but-possibly-boosts-tourism.html "The Brexit Effect Hits UK Salaries, but Possibly Boosts Tourism"), and adapt to customers’ evolving needs.

Having more time to work on improving quality gives [businesses an important](https://www.financedigest.com/the-importance-of-property-care-looking-after-your-business.html "The Importance of Property Care: Looking After Your Business") competitive advantage. At the same time, it doesn’t incur additional costs because cloud [technology enables developers to simply better allocate their time](https://www.financedigest.com/why-its-time-to-centralise-public-sector-technology.html "Why it’s time to centralise public sector technology") between technical tasks and strategic tasks.

For example, after migrating to the cloud, [Deutsche Bank](https://www.pluralsight.com/customer-stories/business/deutsche-bank-innovating-the-future-of-banking-through-upskilling-data) was able to save time on software development, and focus more on developing a strategy to improve the design and quality of their financial services offering as a result.

The use of advanced AI and data analytics tools helped the [bank better manage and understand data in order to adapt to trends](https://www.financedigest.com/6-technology-trends-banking-2019.html "6 Technology Trends for Banking in 2019"), and be more flexible and better respond to client needs. As a result, adopting cloud [technology allowed Deutsche Bank to improve](https://www.financedigest.com/how-technology-is-improving-car-safety.html "How technology is improving car safety") resilience, deliver better financial services to customers quickly, save costs, and eventually become more competitive.

With cloud computing and the robust infrastructure it creates, [financial services](https://www.financedigest.com/73-of-employees-in-the-banking-and-financial-services-industries-are-looking-for-better-physical-and-mental-wellbeing-support-in-the-workplace.html "73% of employees in the banking and financial services industries are looking for better physical and mental wellbeing support in the workplace") companies can scale more rapidly and continue to deliver quality services and experiences for customers. In particular, businesses are more productive and competitive because of the ability to scale more easily and [deliver products faster](https://www.financedigest.com/you-cant-get-faster-than-that-spring-statement-update-delivered-digitally-as-it-happens-with-app-driven-technology.html "‘You Can’t Get Faster Than That’ – Spring Statement Update Delivered Digitally As It Happens with App-driven technology"), while also maintaining better security and data management capabilities.


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