As technology continues to soar, the financial sector is slowly building its trust in off-premise storage to power up a data backup and incorporate unstructured data from the Internet.
Traditionally, banks and financial institutions combine on-premise storage, along with cloud storage. The latter became a huge thing, with more cloud vendors introducing productive tools including artificial technology (AI), analytics, and data management.
Scaling the storage helps to arrive at a properly structured data record format. Additionally, banks can also speed up data backup, manage files effectively, and basically recover systems if a failure occurs.
For the past decades, these financial companies have been off hands when it comes to allowing data to go off-premise. The decision is practical, yet the need to move out of this zone is recommended to utilize data management tools available these days.
“Every organization that has data at scale can benefit from the economies of scale in the cloud. The cloud has been a natural home for huge swathes of data that financial institutions use every day,” said WANdisco VP for product management Paul Scott Murphy.
According to Murphy, a lot of banks are trying to test the waters for hosting data in the cloud. This is for all customer-related data, and not the bank. Most are still hesitant to shift to cloud storage in fear of cyberattacks.
Datasets from the bank are used along with the CRM, ad tech, and service desk applications, considered as a cloud-native. Now, the advantage of pushing for cloud storage and systems is to govern data in a more secure way, as information is backed up.
“After that, they expand to much broader types of big data, such as transactional information for real-time risk analysis, data aggregation, and analytics, to support loan origination decisioning, and customer and market intelligence,” added Murphy.
Part of the decision to test the cloud capabilities is to transform the financial institutions and optimize costs related to on-premise storage. As companies can move data more rapidly in the cloud, than in their own data centers, they can trim the operational expenses altogether.
Speaking of backup, cloud storage presents a number of strategies to prevent the complete wipeout of data. By Live Data strategy, data is replicated immediately as they occur. These sets of data remain consistent across multiple environments.
The machine learning and artificial intelligence features also help banks to manage data properly, limiting the need for a workforce.