The financial industry is rapidly modernizing, with the highest percentage of companies planning to spend more than $1 million on digital initiatives. This growing digital appetite is accelerating cloud adoption for two primary reasons: cost reduction and maximizing technology benefits.
Based on recent trends, BFSI organizations will continue to use cloud services in 2023 to access new and innovative technologies while making their own operations and processes more efficient. Here are some of the key trends to watch out for:
Increasing investment in cloud security and resilience –
Cloud computing can offer businesses and organizations efficiency, convenience, and capabilities, but it can also put them at risk from cybersecurity threats. Furthermore, increasing laws concerning the storage and use of personal information also pose the threat of fines and a loss of customer trust.
To achieve a win-win situation that allows businesses to transform through the cloud while protecting their data, they will find innovative and cost-effective ways to secure their networks, particularly given the economic downturn, which will increase the likelihood of security breaches. Cloud services like Microsoft Azure offer encryption and security protocols to help companies comply with privacy and security regulations.
Multi-Cloud Strategy –
The year 2022 was the year of the hybrid cloud, but 2023 could be the year that enterprises begin to understand the benefits of sourcing services from multiple cloud providers. The multi-cloud approach offers a number of benefits, including increased security and flexibility. Moreover, it prevents organizations from becoming too entangled in any one ecosystem, which can lead to problems when cloud service providers stop supporting certain applications. It also mitigates the risk of business operations being interrupted by system failures or downtime.
Aligning applications and processes exclusively with a single cloud platform can hurt businesses. Cloud providers like Microsoft Azure offer a holistic, seamless and more secure approach to innovate across your on-premises, multi-cloud and edge environments. According to reports, 84% of medium and large enterprises will have adopted a multi-cloud strategy by 2023.
The cloud that keeps on giving
To ensure efficient and profitable cloud adoption, organizations must first understand how much data is in their file store. Once this is determined, the unstructured data must be structured, classified, tagged and indexed as hot or cold data. Hot data can then be moved to file storage, while cold data can be moved to object storage and archived in low cost tiers such as Microsoft’s Azure Blob storage or AWS’ S3 storage. If the data is analyzed before migration, the total cost of using the cloud can often be less than the cost of using on-premise storage.
Microsoft Azure for Finance
Microsoft Azure is assisting the financial services industry in overcoming critical challenges, gaining a competitive advantage, and transforming their business model. Here’s are some ways in which it is enabling intelligent banking, modernizing commerce, and personalizing insurance systems:
- Providing differentiated experiences: As Microsoft Azure and its partners like Data Dynamics integrate disparate data sources, they can obtain a 360-degree view of the customer and manage customer experience across all channels. A deeper understanding of data provides granular level insights into each client interaction, allowing them to be engaged on their preferred channel and managing service expectations using sentimental analysis to reduce churn and time to resolution. It recognizes key patterns and recommends actions at the right time and via the appropriate channel based on those patterns in real time.
- Risk management across the enterprise: Azure Cloud enables businesses to adapt to rapidly changing requirements. It provides analytics and collaboration capabilities to identify trends and a seamless framework for risk management processes. Azure provides data sourcing, visualization insights, modeling, and regulatory reporting to improve risk management through scalable data processing . This gives risk management teams a complete picture of risk.
- Streamline data management and optimize costs: Utilizing Azure’s technologies and strategies, data ingestion, processing, archiving, and deletion can be optimized. With Azure, data is ingested easily and stored in various data stores depending on its type, structure, and other factors. Third-party databases are available in addition to SQL Server and SQL Azure.
- Modernize the core system and payments: Azure helps modernize payments and core systems to reduce costs and develop new products more rapidly to meet customer needs.
- Streamline security and compliance: Azure offers the broadest compliance coverage of any cloud provider, along with the latest security innovations. The approach to regulatory compliance is simplified with a dedicated program for financial services compliance. Azure supports the right to audit, transparency in operations, automated audits, and self-reporting.
Microsoft’s Azure File Migration Program has made data migration easier by sponsoring the usage of Data Dynamics’ StorageX, which has made cloud adoption much easier and cost-effective. The Azure File Migration Program allows companies to migrate applications and workloads with large numbers of files, unstructured data, and object storage data into Azure for FREE.