Core Banking Services and Cloud Technology Integration: A Report

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Core Service by Bank
The Banking Sector provide different services which maintain day to day transaction.
The baking sector work on the cloud-based network and mainframe system which helps
them to increase the performance and provide dynamic support (Asadi et al, 2017). The
Core services provided by the bank are as follows:
Saving Money – the Bank provides the digital account which helps to store cash in a
digital form and can be used whenever needed. This provides security for the fund of
different users. The account can only be accessed by the actual owner of that account.
Digital Money – The Digital money is technology in which the hard cash is converted
into digital money which can be used anywhere and anytime. The users can also
convert this digital money into hard cash whenever want.
Loans – The Bank provides many users financial support in form of Loan. The user has
to pay the loan amount to bank in small amount which can be monthly or Annual based.
The Bank charge some percent of total amount which is needed to be paid by user.
Security Need
The banking sector needs to maintain a large system that contains sensitive data and
information related to users. These data contain account information such as account
number, card number, pin, etc. These data can be used for transferring the money to
their account without any authorization. The Fraud people can also misuse the data of
bank or blackmail other. The Bank has to provide proper security to its system so there
is no misuse of the data. There should be security for transactional process. this is
possible to hack the transitional process when the user transfers the money where the
whole money can be transfer to fraud account. There are many techniques must be
used by the bank so that the money and other data of users should be protected. Data
corruption and data leakage must be controlled.
ICT batch workload in banking Sector
The Information and Communication Technology batch workload is used by the bank for
performing the transaction. The transaction is performed between different users which

need to be completed otherwise there will be loss of that money. The Information and
Communication technology is used for two types of transaction one is Online Banking
and another is ATMs. In online banking, the digital money is transfer from one account
to another and all these processes are performed u. sing internet. The ATMs use the
card and pin number for login into customer’s account. The digital money converted into
hard cash which is taken from ATMs. Both types of the transaction need to survive form
multiple transactions and the system used for performing these transactions need to be
powerful enough (Hurwitz, Kaufman, Halper & Kirsch, 2017).
As the ICT batch workload is used for ATMs and Online Banking process, the process
needs to be accurately completed. The user request for the transaction which is sent to
the system which contains all the details related to the account. The data is fetched
from the database and main system checks it. Then the mainframe system sent the
acknowledgment to the users for the confirmation. After the confirmation by user, the
main system allows the ATM to process the request and database is updated. This
process also flows in Online banking. The request is received from the user which is
process by the main system. Then the request for confirmation is sent to user such as
OTP, after the confirmation, the money is transfer to the receiver side.
ICT analytics workload is used by the bank for accessing all the details related to the
user. The Details like account number, account type, User mobile number, email
address, etc. The authentication is provided on the basis of these details. The analysis
for the user is done which helps to improve customer support. the new offers and
services are provided to the sue on the basis of analysis. Business matrices are formed
for improving sales performance in banking. The ICT analytics workload type used to
increase profit for both bank and user level.
Benefits of using cloud technology in bank
Cloud computing provides various advantages in different sectors. Banks are also
benefited by the features of cloud services. Due to the variation of computing
requirements, workloads also vary. Some of the clear benefits of using cloud computing
in the banking sector are given below:

Reduced costs: Cloud computing facility allows the banks to do not invest a big
amount in physical resources and related manpower. Cloud-based resources are easy
to update and maintain.
Improved scalability and flexibility: Using cloud computing services allow the banks
to quickly respond to the changing and evolving market demands. This also enables the
bank to meet the technological needs. It allows the banks to easily scale up and scale
down the resources according to the requirement. Banks are required to use the
analytics services to be aware of different data in the complex bank environment. The
cloud services provide a high level of computing ability to analyze this data and helps in
the management of analytic workloads.
Better efficiency: Cloud computing services provide improved efficiency to the banks
as cloud services make it simple to integrate with the latest applications and
technologies in the future. This can also reduce the complexity of the IT infrastructure of
bank. The cloud computing services are able to manage batch workloads. Cloud
computing is able to process a large amount of data that includes telephone bills,
monthly online transactions. Batch workloads require a large amount of storage and
computing resources and cloud services provide it in an efficient manner on a pay-as-
you-go basis. This efficiency of eth cloud environment also enables faster transactional
workloads because every service and resource of the bank is accessible through cloud
interface which also improves customer satisfaction (Roy, 2018).
Faster services: Using cloud computing services enables the banks to easily develop
and maintain the services. This is helpful to reduce downtime and assure high
availability. With the help of the cloud, clients can easily access the services of the bank
from anywhere and anytime. Transactional workloads include the automation of the
process like processing of order and billing. Private cloud services are helpful in the
automation of the process and help to manage the transactional workloads.
Why banks use mainframes
In the era of the evolution of the latest technologies, most of eth major banks are still
using mainframe technology and services (Olders, 2017). There are some reasons
given below behind the use of mainframes in major banks:

Reliability: Mainframe systems are capable to perform extraordinary with the help of its
software and hardware specifications. These systems perform without errors. Banks
have to manage the analytic workloads with 100 percent accuracy. Mainframes systems
are able to maintain a million of records and help the analysis of data. This is the main
reason behind the popularity of mainframes in the banks. Mainframes systems are able
to manage batch workloads as it is able to process a large amount of data.
Availability: It is not affordable by the banks to have a downtime. The customer may
become unable to use bank services. Even cloud computing services are not able to
replicate and meet the availability architecture of the mainframe. These are able to
execute high workloads without encountering any issues. These are able to perform
batch workloads on a monthly basis in which statements are created from stored data.
Security: Banks has the most sensitive and confidential information of the customers. It
is clear that security is non-negotiable. Mainframes systems have in-built security. The
mainframes have secured OS, cryptographic acceleration that is able to fulfill the main
requirements and protect the user’s data. These are also securing the cloud computing
environment.
Analytical speed: Banks perform various operations such as ATM operations,
investments, transactions, and these activities need an instant and quick response. The
mainframe has the highest clock speed that is able to fulfill the critical requirement of
banks. Also, these systems are compatible with various languages and offer high
processing power. Mainframe systems act as a backbone for the complete bank
system. These are faster than external services of cloud. This is able to manage the
transactional workloads (Wilkes, 2018).

References
Asadi, S., Nilashi, M., Husin, A. R. C., & Yadegaridehkordi, E. (2017). Customers
perspectives on adoption of cloud computing in banking sector. Information Technology
and Management, 18(4), 305-330.
Hurwitz, J., Kaufman, M., Halper, F., & Kirsch, D. (2017). Types of Workloads in a
Hybrid Cloud Environment - dummies. Retrieved 20 September 2019, from
https://www.dummies.com/programming/cloud-computing/hybrid-cloud/types-of-
workloads-in-a-hybrid-cloud-environment/
Olders, B. (2017). Mainframes are used increasingly by major banks and financial
institutions - Planet Mainframe. Retrieved 20 September 2019, from
https://www.planetmainframe.com/2017/03/mainframes-used-increasingly-major-banks-
financial-institutions/
Roy, T. (2018). Scopes and Impact of Cloud Computing on Banking & FinTech.
Retrieved 20 September 2019, from https://www.stoodnt.com/blog/cloud-computing-
banking-fintech/
Wilkes, A. (2018). The mainframe evolution: Banking still needs workhorse tech.
Retrieved 20 September 2019, from https://www.finextra.com/blogposting/16067/the-
mainframe-evolution-banking-still-needs-workhorse-tech