2. Literature review and hypothesis development
2.1. The impact of cloud technology in the banking industry
Cloud technology in the financial services sector has significantly developed and changed the industry, providing numerous benefits and user-friendly interfaces that help users to explore many other options and opportunities. Cloud technology computing opens a new frontier to banks with applications such as hosting servers, payment gateways, enterprise resource planning, and customer relationships (SandP Global, 2021). Cloud computing in the 1960s has emerged for the management of data resources virtually. However, in the early 21st century started from AWS (Amazon Web Services) launched and become popularized in 2006 followed by IBM in 2007, Google in 2008, Alibaba in 2009, and Microsoft in 2010. The whole global market value of cloud computing has grown by more than 20%. These developments changed the financial sector regulators worldwide and the banking industry has welcomed cloud computing since.
2.2. Efficiency
Cloud technology enables financial institutions to reduce infrastructure costs by eliminating the need for on-premises hardware and maintenance. With cloud services, the industry can scale their resources based on demand, paying only for what they use. This flexibility results in cost savings and increases operational efficiency such as hosting servers, payment gateways, enterprise resource planning, and customer relationships. Cloud tech elevates how banks function, for example, it gives the banks with a multi-connection and relationship with customers at many different levels to maintain and improve customer service. Scalability is cloud-based solutions that offer unparalleled scalability, allowing the bank to easily expand their services such as handling overloaded workloads. Cloud technology can scale up or down, providing optimal outcomes for customers and themselves without the need for large upfront investments. Financial services are dealing with massive amounts of data, requiring massive storage and processing capabilities. Cloud technology provides advanced data management tools and analytics platforms, enabling efficient processing, analysis, and extraction of insights from massive datasets. This enables and gives power such as authority to the financial industry to make data-driven decisions, customer experiences, detect fraud.
3. Considerations when adopting cloud technology in the banking industry
3.1. Privacy
The bank must ensure that sensitive customer data is safe and secure when using cloud services. Compliance with data privacy regulations, such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), requires careful selection of cloud providers and establishing clear data handling agreements.
References
A foundation for business transformation. (2019, July 1).
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://doi.org/10.1016/j.jfs.2022.101073
My personal contribution
Helped make the team based on the project work step by step. I encouraged team members to brainstorm and provided ideas to team members. I have spend some time working with team members on assignment and the task of the project, assist the team to reach the goal. In addition, I have demonstrated strong participation in the team effort throughout the project.
We have divided and assigned the part individually in the assignment to take responsibility and accomplish the task given to each member. The task of the each members paper for grammar, punctuation, and formatting errors have been posted to sites.google.com and reviewed with approval. In this assignment, each member was very respectful to other members, responsible and willing participants within the group.Â