Cloud Computing in Banking: Benefits, Challenges & Implementation

This report explores the implementation of cloud computing within the banking sector, highlighting its potential benefits such as cost reduction, improved scalability, and enhanced flexibility. It discusses various cloud service models like BPaaS, SaaS, PaaS, and IaaS, along with deployment models including private, public, and hybrid clouds. The report also addresses the challenges associated with cloud adoption in banking, such as data security concerns and the need for skilled personnel. Furthermore, it examines different cloud operating models like staff augmentation, virtual captives, and outsourcing vendors, emphasizing the importance of selecting the right model to align with business needs. The analysis provides a comprehensive overview of how cloud computing can transform the banking industry, enabling agility and responsiveness to customer demands, while also acknowledging and addressing the potential risks and obstacles involved in its implementation. Desklib provides past papers and solved assignments for students.

Running head: EMERGING TECHNOLOGIES AND INNOVATIONS
Emerging technologies and innovations
[Name of the Student]
[Name of the University]
[Author note]

2EMERGING TECHNOLOGIES AND INNOVATIONS
Executive summary
This report is going to discuss about the benefits that will be gained with implementing the
cloud computing in banking sector. Cloud computing uses central remote servers and internet
for maintain the applications and data. Cloud computing helps in storing the data and allows
immediate access with the use of internet. This is the new version of internet and allows easy
sharing ad accessing data with the highest speed. The implementation of cloud computing
helps in reducing the cost as there will be no need of purchasing high cost system or
hardware’s. With the implementation of cloud computing in the banking sector, banks will
need not to invest on the hardware’s and software’s. This also improves the scalability and
flexibility so that the banking sector can respond to their customer needs. Several banks has
adopted the cloud computing in their business model so that banks can deliver innovative
way of banking. This report will discuss about the importance and the impact that will be
created on the banking sector. These helps the industry to create an agile environment so that
the need of the markets can be easily. This report will elaborate the ways in which the cloud
computing can be used in the banking industry. Various model associated with this are being
described in this paper. In addition to this the paper will also describe the challenges faced by
implementing cloud computing in the banking sector. This is a research paper that will
describe all the perspective related to implementing the cloud computing in banking.

3EMERGING TECHNOLOGIES AND INNOVATIONS
Introduction
Cloud computing has found a great importance in today’s world. Each and every
working sector and even individuals are getting associated with cloud computing, so that they
can easily access their documents and save them. Innovative ways are used to implement the
cloud application within the system. In order to cope up with the increasing demand, it
becomes necessary to develop strategies that will help the banking industry. Thus transferring
the system to the cloud computing would be associated with providing assistance to the
organization in managing the data along with helping the organization in managing the data
as well. Cloud computing helps in accessing and transferring data easily. Banking sector
deals with maintaining the cash of their customer. Thus this becomes very much necessary to
connect with the cloud server. The cloud computing will help in maintaining the database and
will also provide easy backing up the data. The customer and the bank employees can easily
access these data and also can share among them for their personal use. Wit transferring the
system to the cloud server will also help in time of disasters. As the data stored in this server
gets safe and will not have any effect from such activities. The data can be restored and can
be used whenever the user wishes to retrieve it. Thus cloud computing will be very much
beneficial for the banking sector.
Research question
 How the banking sector can implement cloud computing?
 Benefits of cloud computing in this sector?
 What is the disadvantage of implementing cloud system in the banking sector?

4EMERGING TECHNOLOGIES AND INNOVATIONS
Discussion
The report is having the aim of discussing about the need of the cloud computing in
the banking sector. Cloud computing is a technology that helps the user to access and store
their data in the cloud server easily with the help of the internet. These does not require any
addition hardware or device, thus will help to manage the cost. The banking sector will be
able to cut down the cost, as the need of other system and hardware’s will not be required
anymore. There are several models associated with the cloud computing. Implementation of
cloud computing helps in coping up with the market needs and also to change according to
the customer requirements (Singh et al., 2015). Cloud computing helps in storing the data
and allows immediate access with the use of internet. This is the new version of internet and
allows easy sharing ad accessing data with the highest speed. The implementation of cloud
computing helps in reducing the cost as there will be no need of purchasing high cost system
or hardware’s.
The possible disadvantages that are likely to face with the implementation of cloud
computing in banking sector are:
 The maintenance of these system will require extra money
 There are chances of getting data breached, as the information gets uploaded in the
cloud server.
 The banking sector will need highly technically skilled workers, so that the can
operate this technology
Literature review:
The usage of cloud computing is seen in different sectors as well as in the banking
sector also which has been made possible by making use of different models. The different
kind of cloud service models are associated with providing of different kind of offers to the

5EMERGING TECHNOLOGIES AND INNOVATIONS
different kind of banks (Bofondi & Gobbi, 2017). One of the key factors responsible for
achieving success is the choosing of the right cloud computing service mode, which would be
helping in meeting the demands of the business. Some of the major cloud computing models
that are used have been described below along with their functions and deployment process:
Business Process-as-a-Service: Business Process-as-a-Service or the BPaaS is the cloud
model, which is generally used in order to have the business processes, and this processes
mainly includes the billing, payrole or the human resources. Besides this model is also having
the capability of combining the different kind of services models in accordance to their
expertise (Vives, 2017). .
Software as-a-Service or the SaaS: This is the second cloud computing model which is
generally provided by the service provider in order to have a good management of the
different business software. This is also used for managing the data related to the business
along with the access of the users to specific service or data and this is generally done by
making use of the browser. The various kinds of devices that are generally provided mainly
includes the CRM, ERP, Invoicing, Human resources, management of contents, accounting
and management of the service desk.
Platform-as-a-Service or the PaaS: This is generally provided by the service providers of
cloud and is considered to be a complete platform which is provided for the development of
the application, interface, development of the database, along with the storage and the testing
as well (Callender et al. 2015). . This in turn s associated with allowing the businesses to
streamline the development along ith the maintenance and the proving the customers with
support. This in turn is responsible for lowering the costs related to IT along with the
minimization of the need of hardware, software and the environment for hosting.

6EMERGING TECHNOLOGIES AND INNOVATIONS
Infrastructure-as-a-Service or the IaaS: Another service model which is associated with
allowing the businesses to purchase certain resources which would be acting as a fully
outsourced service and this is to be done so as to replace the purchasing of the extra servers,
software, data center space or network equipment (Yu et al., 2015).
Besides the Cloud Deployment Model, there are 3 different way which has been
adopted by the service providers for the purpose of deploying the cloud and this mainly
includes the following:
Private cloud: IN this type of process the operations of the cloud infrastructure is very
unique for certain industries. This type of clouds might be governed by the organization or by
one of the third party. Besides this, the private cloud might be prevailing inside or outside the
premises. In addition to this, the private cloud computing is generally considered to be the
most impregnable amongst all the other cloud choice (Sharma & Al-Muharrami, 2018).
Public Cloud: This type of cloud is generally attainable by a common public or a large
industry group besides this it is generally governed by an organization that is associated with
the trading of the cloud services.
Hybrid cloud: This is the cloud infrastructure that is consisting of two or more clouds, which
are associated with remaining as a solo entity, and besides this they are also associated with
the administration of the services (Owusu-Tucker & Stacey, 2018).
Different Cloud Operating Models:
Determination of the appropriate operating model is generally considered to be the
third aspect related to the selection of the proper cloud services delivery model and this
generally to be done for the mixture of the required resources and the assets. Below are the
three major operating models for the cloud services has been listed below:

7EMERGING TECHNOLOGIES AND INNOVATIONS
Staff augmentation: The banking industries are capable of gaining a cloud expertise, which
is generally to be done by the hiring of the peoples who are having the right skills from the
service vendors (Alhaj& Aljawarneh, 2017). This is the operating model, which is associated
with allowing lot of flexibility along with letting the firm to select the best resource with
respect to each of the specified requirements.
Virtual captives.: Virtual captives is generally considered to be cloud operating model
which is having a pool of resources that is entirely dedicate or the centers that would be
helping in conducting the various operations of the cloud along with meeting the demands as
well. This is also considered to be a good alternative and besides this it would also be helping
in completing the approach related to outsourcing (Thakur, Kumar, & Yadav, 2014).
Outsourcing vendors: in this type of approach which is associated with the usage of the
different offshore centres along with the facilities (Haimes et al,. 2015). In addition to this
peoples from the third party vendors are also used so as to handle the various operations of
the cloud. In this, model combining of the resources as well as the investments so as to
provide cloud services to the different kind of banks.
Advantages:
Some of the major advantages of cloud computing usage by the banking industry has been
listed below:
Cost Saving: the amount of incurred cost helps in the determination of the sharpness of the
business. In today’s world there exists only a few number of cost effective public cloud
computing solution, which are perceptual and are self-service-biased. The public cloud
vendors are associated with providing of low cost price advertisements which are generally
associated with inspiring the IT departments so as to have an insight regarding upon the
allocation of resources, cost and the different kind of cloud models and this mainly includes

8EMERGING TECHNOLOGIES AND INNOVATIONS
the public, private as well as the hybrid clouds (Haimes et al,. 2015). In a bank billing is
generally considered to be a non-core process for the banks. However, this is also associated
with the outsourcing of this to the less expensive mediators, which would be allowing the
clouds to route the capitals towards the core technology based functions.
Scalability: Whenever a cloud is designed in a proper way, then it would be associated with
empowering the bank in meeting the demands of customer in an easy way. Besides this a
well-designed cloud is also associated with quick scaling of the customer demands. In
addition to this provisioning of the different resources related to computing can be
provisioned in a dynamic way. The implementation of a well-defined clod would be saving
the users of the business as the IT professionals from the work load during the peak times
(Chatterjee, 2017). Tackling of the different kind of challenges related to the security and
privacy of the data by the Banks can be done by making use of the hybrid clouds. This are the
type of clouds in which the data precise in nature can reside in the private cloud, whereas the
different computing powers are seen to be available in the public clouds.
Time to market: BY making use of the cloud computing, this is generally considered to be
the market which can be curtailed from months to weeks or days, and this generally
dependent upon the banks size. Help is provided by the self-service based, on-demand and
real-time monitoring in different ways which mainly includes the following
• Phasing out of the different kind of procurement delays related to the computing hardware
and software (Oredr et al., 2017, May)
• Acceleration of the various computing power related to the conditions when there is a need
of dealing with the various peak loads by the current applications

9EMERGING TECHNOLOGIES AND INNOVATIONS
•Eradication of the capital as well as the invested time needed for the purpose of procuring
the hardware so as to provide proofs related to the concept work.
Data Virtualization: Data virtualization is generally considered to be the assimilation of data
from numerous as well as from the different kind of sources present all across the enterprise
or external sources (Tebaa, Zkik & El Hajji, 2015). This is to be done for the consumptions
according to the demands related to consumption by carious kind of applications that are
present in virtualized way. The various kinds of mandates related to the banks regulations and
performance, which generally requires a data virtualization strategy (Malkawi, Obeidat, &
Halasa, 2017). Besides this, the strategy can also be provided by one of the single source
related to the single source of reference data, and this might be including the security master
data. Besides this the calculation of the risk and analytics is generally dependent upon the
various kind of data from vriosu sources and this might be including the relational as well as
the semi-structured XML. By Combining, this kind of discordant data received from the
public and private domains is generally considered to be a test. In a similar way, accessing
this kind of data from one of the single virtual source is also associated with driving the
scores of consolidated data from the banks.
Mobility: In most of the corporate sectors of the world, it is seen that the workers are techno
savvy and besides this, they are also associated with the accessing of the risk and providing
of the analytics reports while they are in a moving condition (Srivastava, U., &
Gopalkrishnan, S. (2015). . In order to record the benefits related to the assessing of the
internet by making use of the smart phones and Ipad‘s in an instantaneous way even for the
locations which are remote. Besides this in a similar way, they also require similar interfaces
so as to have banking services-specific applications. Along with this as the cloud are
associated with facilitating the users in order to access the different systems as well as the
infrastructure which makes use of the web browser or customized clients is done without

10EMERGING TECHNOLOGIES AND INNOVATIONS
taking into account of the location as well as the time. In today’s world, it is seen that the
advancement of this kind of interfaces has been initiated so as to take a certain shape
(Zineldin, M., & Vasicheva, V. (2015). .
Future advancements:
As time passes by it is necessary for the banking sector, to typically leverage the
Hybrid Cloud architecture and this is to be done so as to realize the different kind of benefits
which mainly includes the cost, speed, and efficiency. Besides this it would also be
associated with the balancing of the requirements which mainly includes the security,
compliance, quality of service present across the different business functions (Islam, Islam, &
Beg, 2015) (Islam, Islam, & Beg, 2015). Along with this is also recommended that the usage
of the hybrid cloud model would be associated with enables banks to gain a larger number of
benefits from the cloud computing. This would be done along with proper maintenance of the
security as well as the confidentiality of their data. So it is essential for the Banks to adopt
certain practical approach needed for the security and privacy of the data stored in the cloud.
It is generally observed that most of the data are segmented in accordance to the various
levels. In a similar way it is seen that the banking sector is also associated with the
implementation of the cloud. In a similar way, there is also a need of implementing the clouds
in the banks to a proper and appropriate security. Banking organizations have been associated
with initiating the process of adopting the new cloud-computing technologies in a number of
ways, and this involves the usage of the different mobile applications along with the testing in
an innovative way as well as micro- banking (Oliveira, Thomas, & Espadanal, 2014).
Mobile banking: In case related to the online banking it is seen that the customer present
around the online banking are associated with delivering the partners in order to check the
balance or for ordering stop payment orders.

11EMERGING TECHNOLOGIES AND INNOVATIONS
New service R&D: Banking services Organizations is also responsible for having an increase
in the number of advance computing power that is generally provided to the cloud services so
as to conduct the research and delivering of the computing power related to the specific
testing of the services before getting involved with the production (Asadi et al., 2017)
Conclusion
From the above report, it can be concluded that with the growing demand in the
market, this becomes very much necessary to adopt new technologies. Cloud computing is
the best way to share information and provided best storage of the data with the use of
internet. Cloud computing has found a great importance in today’s market. Thus
implementing cloud computing in the banking sector will help the banking department in
maintain the records efficiently and will also improve their service. As this is based on
technology, so les human power is required but with better knowledge. This report has
discussed the importance of cloud computing in the banking sector. The later part of the
report has critically analyzed the research questions. Also the future of these technology in
the banking sector is being discussed. Thus from the above report it can be concluded that
cloud computing will help in improving the service provided by the banking sector.

12EMERGING TECHNOLOGIES AND INNOVATIONS
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