In recent years cloud computing has become an important part of the financial industry. It has completely changed the way these financial organizations operate. Financial institutes are adopting cloud computing on a very large scale. According to a recent report, around 80% of global financial institutions have adopted hybrid cloud infrastructure.

Hybrid cloud technology in banking is being adopted worldwide because it helps organizations control scalability, flexibility, security, and cost. By adopting cloud infrastructure in finance, organizations benefit from both on-premise and cloud infrastructure.

In this article, we will cover the benefits of hybrid cloud infrastructure for the financial services sector. Read the full article for complete insights on the topic.

Hybrid Infrastructure for Financial Services 

Hybrid cloud infrastructure has become very popular among financial organizations. It has gained so much popularity among financial organizations because hybrid cloud computing in finance provides features of both public and private clouds. 

The public cloud provides on-demand services like storage, tools, and processing for a large number of users. While private clouds provided resources to a single organization. The hybrid infrastructure allows organizations to achieve flexibility, scalability, and cost-effectiveness while also retaining reliability and security.

Advantages of Hybrid Infrastructure 

Here are the advantages of hybrid infrastructure for financial services that we have mentioned earlier.

Flexibility 

One of the major advantages of hybrid cloud computing in finance industry is its flexibility. It allows banks and financial services to quickly respond to changing customer needs and market trends. Financial institutes can scale up automatically when their service demand is at its peak and can quickly scale down after that period. 

Hybrid infrastructure also allows organizations to release new services quickly. For example, banks can quickly roll out new applications by testing and deploying them on the cloud. This saves them time and money.

Scalability 

Another important benefit of hybrid cloud computing in finance is improved scalability. Hybrid Infrastructure allows financial services and banks to scale up and down anytime. Organizations can scale up their operations quickly when the workload is at its peak without having to install on-premise infrastructure. 

In hybrid infrastructure, organizations only pay for what they use. They can avoid spending money on the maintenance of large on-premise IT infrastructure.

Cost Effective 

Another benefit of hybrid cloud computing in finance is cost-effectiveness. It allows organizations to automate repeated tasks like data entry, storage cleanup, and updates. This allows organizations to concentrate on important projects. It also provides insight into all the ongoing projects of different departments. This helps financial institutes suspend low-performing projects and save their resources.

A hybrid cloud provides financial institutions with the tools to predict market trends based on old data. This helps financial institutes maximize their profits and avoid risky investments.

Security 

Security is a major concern for every financial institute. Hybrid Cloud technology in banking allows organizations to store sensitive users’ data on-premises. While the cloud can be utilized for less sensitive data. Furthermore, hybrid infrastructure also allows organizations to comply with regulatory requirements. As many regulatory bodies require users’ data to be in certain regions.

This cloud infrastructure also provides security against cyber threats using firewalls, access controls, encryption, and authentication. 

Benefits of Hybrid Infrastructure for Financial Services 

Here are some benefits of Hybrid infrastructure for financial services:

Enhances Security 

One of the important benefits of hybrid cloud technology in banking is enhanced security. It allows organizations to utilize the benefits of both public and private clouds. Financial organizations can keep sensitive user data on the premises. All the other data can be kept online. 

A hybrid cloud provides high levels of security through encryptions, firewalls, access control, and authentication. Moreover, it allows banks and financial institutions to comply with the regulations of government bodies by keeping data on-premises.

Improved Customer Experience 

Another benefit of hybrid cloud technology in banking is enhanced customer experience. Financial organizations process a large number of transactions every day. Hybrid cloud computing allows these organizations to process transactions efficiently in real time. 

Hybrid cloud infrastructure services in finance also allow these organizations to diversify their data across different cloud platforms. This helps organizations to continue their operations in case of any downtime. It is also very secure and reliable.

Increased Agility 

Hybrid cloud technology in banking provides more agility. It means financial institutions can respond to changing market trends and customers’ needs quickly. It allows them to scale up and down quickly without having to upgrade their on-premise infrastructure. 

The hybrid infrastructure allows organizations to release new services quickly. With cloud infrastructure organizations can develop, test, and deploy services more efficiently. This helps organizations cope with changing technology and customer needs.

Better Data Management 

The banking and financial services industry is a data-driven industry. A hybrid infrastructure allows financial organizations to manage their data effectively. It provides organizations with total control over their data. Organizations can manage their data by using both cloud and on-premise infrastructure. In this way, sensitive data can be kept on the premises while less sensitive on the cloud.

Cloud infrastructure services provide organizations with data analytics tools. These tools can be used to get actionable insights into customer behavior and operational data.

Case Study: JP Morgan Chase

JP Morgan Chase is a global financial services organization that has adopted hybrid cloud infrastructure successfully. They have been able to improve their scalability, availability, cost-effectiveness, security, and reliability. They have also utilized cloud infrastructure services to improve operations and online banking services. 

With a combination of public and private cloud JP Morgan Chase has improved its efficiency and customer experience while maintaining security and regulatory compliance.

Challenges faced by JP Morgan Chase 

Before the adoption of Hybrid Cloud Infrastructure, the organization relied on physical IT infrastructure. Due to their reliance on on-prem infrastructure the company faced challenges of scalability and downtime. These problems affected the company’s operations and customer experience negatively.

Benefits Achieved 

After the adoption of hybrid cloud infrastructure JP Morgan Chase improved its performance significantly. They have improved their scalability and reliability. They have utilized the cloud to scale up during peak workload. Hybrid infrastructure also allowed JPMorgan Chase to improve their day-to-day operations and data management. 

Cloud infrastructure services allowed them to get useful insights about their customers. They have been able to roll out online banking services and products to improve their customer experience.

Conclusion 

Cloud infrastructure services have revolutionized the banking industry. Companies avoiding cloud adoption are leaving behind. Hybrid cloud infrastructure has become popular among financial institutions due to the combined benefits of public and private clouds. It allows organizations to improve scalability, flexibility, security, cost-effectiveness, and reliability. Companies like JPMorgan Chase adopted hybrid cloud infrastructure and improved their performance significantly.