The literature review has highlighted the impact of cloud technology on the banking industry. The adoption of cloud computing has changed the financial services sector, providing many benefits and opportunities for banks. Cloud technology offers user-friendly interfaces and a wide range of applications such as hosting servers, payment gateways, enterprise resource planning, and customer relationship management. This has helped banks to grow their working efficiency and improve customer service.
One of the key advantages of cloud technology is its ability to reduce the cost of infrastructure by removing the need for on-premises hardware and maintenance. Financial institutions can scale their resources based on demand, resulting in cost savings and increased efficiency. Cloud-based solutions also offers higher scalability, allowing banks to easily expand their services and handle large workloads without the need for significant upfront investments.
Furthermore, the advanced data management tools and analytics platforms provided by cloud technology have helped the financial industry to make data-driven decisions and improve further customer experiences. Cloud computing enables efficient processing, analysis, and extraction of insights from massive datasets, which is essential in today's data-driven landscape. Additionally, cloud technology helps in fraud detection and enhances the security of sensitive customer data.
However, when adopting cloud technology, banks must consider privacy concerns and ensure the safety and security of customer data. Therefore, careful selection of cloud providers and establishing clear data handling agreements are crucial steps to protect customer privacy.
In conclusion, the adoption of cloud technology has brought huge changes in the banking industry, enhancing efficiency, scalability, data-driven decision-making, and customer experiences. By addressing privacy concern and ensuring data security, banks can use the full potential of cloud computing to drive innovation and stay competitive in the evolving financial services landscape. Banks that adopt cloud computing are found to have lower cost efficiency but higher profit efficiency. The application of cloud computing, on average, increases bank operational risk. However, this effect varies significantly with bank ownership: state-owned banks reduce operational risk, while all other banks experience increased operational risk. We find evidence suggesting that cloud computing interacts with other newly emerging technologies and jointly affects bank efficiency and operational risk. We can find that controlling operational risk gives synergy gains. The findings are of timely policy importance and practical relevance for regulators, policy-makers, and bank managers. Cloud computing in banking is still at the early transitional stage, and its effects remain to be seen. Future research should follow up on the impact of cloud computing and other emerging technologies in the banking sector.
Refrences :
David, C., Javier, E., & David, R. (2010). The e-HUB evolution: From a Custom Software Architecture to a Softwareas-a-Service implementation. Computers in Industry, 61(2), 145–151.
"a foundation for business transformation"
Cheng, M., Qu, Y., Jiang, C., & Zhao, C. (2022). Is cloud computing the digital solution to the future of banking? Journal of Financial Stability, 63(101073), 101073. https://www.sciencedirect.com/science/article/pii/S1572308922000948?via%3Dihub#sec0105
CONTRIBUTION:
The contribution I provided was by giving conclusion to the Introduction and Evaluation part which were done by my fellow mates. For my part, I used the same references as my friends which provided further insight to their works. The sources included academic journals, industry reports, and reputable publications.
One of the key references used by my friend was the article by Cheng, Qu, Jiang, and Zhao (2022) titled "Is cloud computing the digital solution to the future of banking?" published in the Journal of Financial Stability. This same article provided me insights into the efficiency and scalability benefits of cloud technology in banking, as well as its impact on operational risk. As my friend had discussed the efficiency but the risk of cloud computing, this article helped me conclude and support his relevant discussion on this topic.
Another important reference was the paper by David, Javier, and David (2010) titled "The e-HUB evolution: From a Custom Software Architecture to a Software-as-a-Service implementation" published in Computers in Industry. This article helped me explore the evolution of cloud computing and its applications in the banking industry, providing valuable information on the different cloud-based services that banks can utilize, such as hosting servers, payment gateways, and enterprise resource planning.
Additionally, I had noticed one of discussion my friend did was cloud computing impact on busniness . So, I had to use another reference i.e. “a foundation for business transformation (2019)” to provide further insights into the overall impact of cloud technology on the banking and business industry.
These given selected references were used to support the key points discussed by my friends, ensuring that the information presented was based from credible and relevant sources.