Cloud computing is transforming the way the financial world is operating. With an easier way to handle data, financial institutions are taking advantage of the many benefits that come from this technological advancement.
At the core of being an effective wealth manager is providing strategic and efficient investment management solutions that are in line with the current trends. Migrating to the cloud can help deliver flexible and agile solutions to wealth management systems that can contribute to a strategic competitive advantage while preparing for long-term success. Part of this competitive advantage is to ensure that the business/IT linkage is strengthened with viable security systems and manageable filing solutions.
The future of IT lies in data technology and access to an unlimited raft of data The reason for this is that wealth managers are now using data to feed AI and machine learning initiatives in order to deliver better operational efficiency. With an increase in demand for instant information and services, cloud computing has become more of a necessity rather than an added competitive advantage.
What is Cloud Computing Technology?
Although wealth management can arguably be noted as a more traditional financial service, it’s undeniable that these industries have been transformed by the digital age. From personal banking to online transactions, user experience has been at the fore of customer service. It’s for this reason that many wealth managers are taking their big data to the cloud.
Cloud-based computing is a form of internet-based programming that allows one to make use of a remotely-located, shared computer resource to store and process their data. For larger corporations or extensive portfolios, the data associated with these client files may be too intensive for a stand-alone machine or device. To avoid any data losses or inoperable malfunctions, the cloud offers an on-demand solution.
The evolution of such data storage programming has enabled several industries, most notably the fin-tech market, to create platforms that are customer-centric without jeopardising security or efficiency. It can be used to record financial transactions, carry out basic performance evaluations and reporting while supporting financial management tasks like bank and cash management. In other words, cloud computing technology has evolved into a one-stop solution for all matters related to data storage.
The Benefits of Cloud Computing
As more wealth managers are taking to the cloud, it’s important to understand the benefits that can come from such technology.
Reducing Total Cost of Ownership
Cloud technologies are equipped with a myriad of various subscription models to suit the needs of their customers. Based on your data storage needs, wealth managers can find an appropriate SaaS – Software as a Service, that is equipped in handling their financial offering.
Furthermore, when opting for cloud usage, this eliminates the requirement for expensive storage hardware that’s used to manage and process data. Unlike this type of hardware, the cloud won’t require resources to maintain and secure its usability. Investing in internet-based platforms for data storage means that maintenance and security deployments are part of the pre-paid service. This makes any changes in the IT infrastructure more manageable and less costly.
Improving Data Security
There are notable reasons that some wealth management firms and individuals have been hesitant about taking their data to the cloud. One of the most significant reasons among them is data security. Issues with data security can have severe consequences that can cost millions of dollars to resolve. With breaches in data security being on the rise, it’s imperative that wealth managers safeguard all of their platforms.
Luckily, cloud technology has paved the way for a successful and minimally stressful alternative to safeguarding data. By using state of the art equipment and constantly updating software, the cloud is consistently protected against any breaches. In fact, using a trusted cloud service provider can be argued to be the safest place for data storage.
Increasing Efficiency and Scalability
When hosting data on cloud software, the efficiency of a financial institution can increase. Benefits like quality control, loss prevention, and sustainability are just some of the factors that exist in such an environment. The efficiency of your data storage doesn’t have to be hindered by any challenges and delayed solutions as most issues can be resolved quickly. This means that organisations can focus more on what they do best - delivering exemplary wealth management services.
An important aspect of wealth management and data security is compliance. Cloud accounting software can be used to track all auditing processes and measure an organisation’s compliance. Vital information can be accessed and shared instantly with real-time metrics that tracks financial data needed for review.
Cloud computing can also be useful in tracking important documentation and processes when it comes to auditing. By combining technology with sophisticated compliance solutions, wealth managers can transform their compliance into a competitive advantage. With transactions, metrics, and data being accessible at any time, it’s easier to stay abreast of trends and reporting while focusing on your client needs.
Preparing for Future Needs
We are seeing more institutions and individuals take to the cloud for both personal and professional needs. These platforms can be a wealth manager’s greatest asset in terms of performance, data monitoring, and analytics. Even the nature of the data can create a foundation for future insights and strategic wealth planning.
Should business growth be on the cards, cloud management software can help scale wealth management firms without requiring additional personnel. The continuous, real-time reporting makes for greater business visibility, therefore contributing to faster business decisions that can be made more accurately. Furthermore, this type of software scales as the assets under management of the firm increase.
The Bottom Line
Migrating your systems to the cloud can bring your institution many benefits. With the rise in the importance of customer service and streamlined processes, banks and wealth managers are quickly turning to the cloud. The reason for this is that moving to a cloud-based can transform your operating and capital expenses. It can also elevate how an organisation functions with smoother processes for both clients and managers. Without upgrading software and processes to the system, financial institutions run the risk of decreasing their business-value while limiting their customer service.