The last decade has changed the face of almost every industry, thanks to technological advancement and the introduction of new tools and resources businesses can use. The same goes for capital markets. Companies in this domain have been and still are going through a digital transformation due to their need for improvement, adaptation, and market advancement. Cloud migration emerged as one of the main steps in that process of digital transformation.
Why are cloud technologies so important for capital markets? Why is cloud migration worth the time and effort you need to invest in it? We’ll answer those questions below in our list of the main benefits of cloud migration for capital markets.
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Scalability of the Business
As we've already mentioned, capital markets are growing rapidly. That means that most successful businesses have growing amounts of work, traffic, and data that need to be stored, processed, and preserved.
Scalability, in this sense, is a must, or businesses are under the threat of collapsing or not being able to handle all that necessary growth.
Cloud technologies enable financial institutions to be scalable in every sense while adapting to the changes. By migrating to the cloud, businesses can simply grow without changing their infrastructure. As their business goes up or down, they can make changes within the existing infrastructure:
- add additional storage
- increase processing power
- introduced artificial intelligence assistance
Scalability is a major question for growing businesses and a major benefit of cloud migration.
Performance Stability
When a huger amount of data come flowing into your system, it can be a challenge to keep things stable. These large volumes of transactional data and information can overload your systems and slow down or completely stop them from functioning.
But cloud migration allows you to distribute those activities across several different servers and data centers. This ensures:
- stable performance
- continuity of data flow
- business endurance and flexibility
This helps financial institutions remain stable even during prime time and peaks that would otherwise cause distress.
Third-Party Integration
As a financial institution, you want to offer all kinds of services that your clients may be looking for all in one place. But, it would take you a lot of time and money to build, manage, and maintain all those systems by yourself.
Luckily, using cloud technologies enables you to integrate easily with third-party services that offer such services. Those include:
- payment getaways
- data analysis
- security services
This means you can add services to your primary offer, remain within your budget, and increase your revenue.
Improved Security
Security measures for financial institutions are of utmost importance. With the rise of new technologies, even frauds and malpractices have become more sophisticated and need greater attention from the security department.
But, cloud technologies help minimize the risk of all kinds of security threats using different security measures:
- encryption
- fraud detection
- threat detection
- recovery from malpractice
With improved security measures, financial institutions are more protected and can guarantee the safety of their clients. This could set them apart from their competitors and win over new clients who primarily appreciate security.
Saving Money
All of the above benefits lead to one last but certainly not the least important one, which is saving money. With higher efficiency, fewer investments, and more available space and services, financial institutions will be saving money using cloud migration.
Here are just some of the main ways you’ll be saving your money:
- no need for an internal IT infrastructure
- no unnecessary cost or upfront investments
- automation of redundant tasks
- less workforce
- fewer losses through fraud and malpractice
Financial institutions save their money through all these factors and can invest more in other domains of their business operations.
Final Thoughts
For capital markets and all institutions and businesses in this domain, cloud migration can be golden. The benefits we've listed are just some of the most prominent ones. There are other, minor ones that are worth noticing as well and that help make the business more stable and successful than before.
So, if you’re in the capital market and are considering cloud migration, there’s no reason to wait any longer. Embrace it and enjoy the benefits.