Credit Unions and Independent Banks need the competitive advantages of a cloud solution. Cloud solutions have replaced manual banking tasks and so much more. The cloud isn’t just a storage solution; it’s a multifunctional virtual data center and an efficient and unique platform for generating data and implementing innovative technology solutions to leverage that data. Data is one of the most significant assets for any industry, especially banks and credit unions. Here are 5 reasons to consider for credit unions and independent banks.
What is a Cloud Solution?
Cloud solutions have proven to be a game-changer for many early adopters in the business sector. The usage of cloud-based software has allowed users to process large amounts of data, run new advanced analytics methods, and benefit from more flexible technology setups. The growing statistics are an indicator of this significant change.
By 2028, the global cloud computing market size is expected to reach USD 1,251.09 billion. The growth can be attributed to many factors, including increased internet penetration, digital transformation, and enormous data consumption in various industries and verticals. (Business Wire 2021)
Despite the potential, the banking sector has been more hesitant than other sectors to adopt the cloud. Most banks are finding it difficult to let go of their traditional on-premises applications. Only a few early adopters like Capital One started a migration to the Amazon Web Services (AWS) cloud in 2012 and shut the last of its eight on-premises data centers in 2020. (Baquero et al. 2021)
However, times have changed for the banking industry too. The need for digital innovation kicked in faster than expected. Banks, credit unions, and other financial companies changed how they operated their daily operations amid the pandemic.
The end-users and early adopters of cloud computing technology cite advantages like elasticity, easy availability, scalability, and other benefits. Financial institutions such as credit unions and independent banks have a newfound potential to deploy more robust processes or data-intensive applications. At the consumer end, it means having a quicker transaction processing times and customized service options. The opportunities are in multiple folds.
Optimization depends on the application of these cloud services. It’s one thing to recognize the potential and benefits of the services; however, it’s a different ballgame to adopt them in day-to-day business operations.
Solutions That Benefit You Now
1. It’s Scalable
Cloud computing solutions provide scalable resources – solutions that can be customized and configured to meet changing needs. Advanced technologies like AI (artificial intelligence), blockchain, and machine learning can be upgraded at regular intervals. Cloud computing companies are investing continuously to upgrade these technologies.
Independent banks and credit unions can expand their service offerings to enhance customer experience and boost new business. The best part is that shifts to the cloud can be done in steps and don’t require entire operations to move to the cloud at once. Start with a strategic approach and move to the cloud with critical data and services.
2. Fast and Secure Data Transmission
Financial institutions, especially banks and credit unions, run most of their services 24X7. This means that system outages affect not only business transactions, but customer expectations. Cloud solutions provide backup redundancies insuring maximized up-time resulting in reliability that insures consumer confidence.
3. Waiting Won’t Save Money
Amid the pandemic, credit unions and independent banks fear investing large sums in new systems or technologies second-guessing when the investment will have ROI. Not investing can impede opportunities for growth and eventually, create competitive disadvantage.
Cloud platform leaders offer broad interoperability and no data lock-in, so credit unions and independent banks can choose a good mix of cloud services to suit their specific needs, targeting opportunity, and without creating wasteful spending.
4. It’s Agile
Advanced agility is proof in optimizing customer-facing solutions at credit unions and independent banks. Cloud computing technology allows easy incorporation of new services, modifying existing services. And contrast to a long wait time to set up an extensive physical infrastructure, cloud-based infrastructure can launch services within a couple of hours or days making customer transitions seamless.
5. Quick Employee Access Improves Productivity
Cloud computing services are readily accessible. It benefits credit unions and independent banks who also manage a remote workforce. With organized controls, the dispersed connectivity options can also become an extension of the credit union’s private network. When customers and employees have “always on” opportunities of a cloud network, productivity increases.
Moving Forward with Technology
In a strongly connected digital world, credit unions and independent banks as we see it are keen to meet their new and existing customers anywhere—be it behind the computer screens on a desktop, mobile ready laptops or smartphones, to one destination in the cloud.
Haltner Design + Build is a trusted design-build firm. We utilize cloud solutions, AR and virtual reality in our very own facility designs for you. Envision your future with a 3D model and a virtual flyover of a planned new facility or the reworking of an existing facility.
For more information, connect with us at 713-523-6100 or visit haltner.com for a demo of how we can use our advanced technology to benefit your bottom line.
Business Wire, Press Release. “Global Cloud Computing Market (2021 to 2028) – Size, Share & Trends Analysis Report – ResearchAndMarkets.com.” Business Wire, 10 Aug. 2021, www.businesswire.com/news/home/20210810005902/en/Global-Cloud-Computing-Market-2021-to-2028—Size-Share-Trends-Analysis-Report—ResearchAndMarkets.com.
Baquero, Juan Aristi, et al. “Fast Forward: How Cloud Computing Could Transform Risk Management.” McKinsey & Company, McKinsey & Company, 17 Sept. 2021, www.mckinsey.com/industries/financial-services/our-insights/fast-forward-how-cloud-computing-could-transform-risk-management.