Cloud-based services have become increasingly popular among small and large businesses alike.

This change in technology and regulation means that financial institutions are under pressure to source solutions that are flexible in meeting security risks. Banks need to meet consumer demands by offering secure access through a number of channels and devices. Global leader in customer engagement solutions, Aspect Software explains that the biggest challenge for banks when servicing clients through cloud-based technology is the threat to security.

Whilst offering a connected customer experience is a major advantage of cloud technology and has revolutionised customer banking experiences, it is imperative that financial institutions utilise software from a provider that meets stringent safety measures to maintain the security of data. “A breach in security would have major consequences for banks and therefore highlights the need to partner with a cloud service provider that offers the right service, deployment and operating models to tackle compliance and security concerns,” explains regional sales director for Aspect Software South Africa, Henry McCracken.

Although there are security risks involved, banks are overcoming their concerns about security and are taking advantage of the tangible benefits that cloud computing offers. “These solutions enable customers to access banking systems from any location in real time, servicing clients faster as well as enhancing the customer satisfaction experience. Cloud solutions are playing a major role in providing alternative ways to access core banking technology,” McCracken adds.

In addition to this, there is a significant cost-saving aspect in cloud solutions as it reduces the operation of IT costs. “With cloud solutions, financial institutions no longer need to invest in new hardware and software. Eliminating the resources for installing and maintaining network components, bank organisations are able to use the infrastructure of their providers which also eradicates the responsibility of incurring the cost of updates,” states McCracken.

“Embracing a cloud model from a reputable vendor provides banks with a secure, flexible and scalable platform to integrate new technologies and future applications. Aligning business and technology operations offers banks the opportunity to deliver improved efficiency to their clients,” concludes McCracken.