ITECH1104 Cloud & Enterprise Computing: Mainframes & Cloud in Banking

This report examines the role of mainframe and cloud computing in the banking sector, emphasizing the importance of speed, security, and capacity for financial institutions. It discusses core business services offered by banks, their ICT workload needs, and the benefits of cloud technologies, including improved efficiency and secure transactions. The report also explores why major banks continue to rely on mainframes due to their compatibility, data handling capabilities, and security features. It highlights the use of mainframes for processing financial transactions and the application of cloud services for analytics, such as fraud detection. The document concludes that both mainframe and cloud technologies are crucial for modern banking operations, offering complementary solutions for different needs within the industry. Desklib provides access to this and other solved assignments for student learning.

Running head: ITECH1104 - CLOUD AND ENTERPRISE COMPUTING
Itech1104 - Cloud and Enterprise Computing
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1ITECH1104 - CLOUD AND ENTERPRISE COMPUTING
Table of Contents
Introduction......................................................................................................................................2
Core business services offered by a bank....................................................................................2
Bank’s needs for ICT workload types.........................................................................................3
Benefits of using cloud technologies in banking sector..............................................................4
Why major banks use mainframes...............................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

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Introduction
The following report is all about bank and financial institutes that depends on speeding,
capacity, security, success and intelligence, which is needed for overall success. The concept of
mainframe was introduced 50 years ago that aims to play a key role in banking industry (Ware,
2015). The main computer comes up with the capability of handling more than 2.5 billion
transactions on everyday basis. This particular can be considered to be as one of the major reason
for understanding the main component of banking data practices (Lundberg & Åkesson, 2015).
Apart from this, cloud computing also tends to play a key role in making changes in business and
operating model.
In the coming pages of the report, an idea has been provided concerning core business
services that are being offered by bank. After that, an idea has been provided concerning bank
need for ICT workload. A discussion has been provided concerning various kind of benefits of
cloud computing in banking domain.
Core business services offered by a bank
In most of the banks, the three main functions that is offered are taking deposits, making
loan and lastly providing services. In fully functioning bank, there are around 15 or more
different kind of process which is hosted in the organization (Agwu, 2018). Some of the
customers need to do business with only one of these while others need to business with others.
In banks, the customers can be easily divided into groups like corporate, small business and
individuals (Garg et al., 2017). The core business services that are being offered by the bank are
Payment services: This particular service can be considered to be backbone of the
complete flow of money (Lundberg & Åkesson, 2015). In the earlier days, payment services are
completely supported by Cheques and demand drafts.

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Financial Services: Financial services is mainly needed by various financial institutes
which are being launched by various institute (Hegadekatti & SG, 2016). The given services are
mainly inclusive banking, exchange bank, limit of credit services.
Ancillary Services: Other kinds of services that are being offered by bank are very much
common with the required banking services (Нетецька, 2018). It is merely inclusive of services
ancillary services that are being offered by bank.
The need for security and privacy concerning bank core business that has been described.
Cloud services can easily offer the bank with large number of benefits like improving the overall
productivity, reduction of cost (Ijaz et al., 2017). Apart from this, its mere focus on delivery of
data storage services and application of accounting. By the help of this technology, new kind of
opportunities can come into picture for the required business. Cloud can easily provide some
kind of security and privacy risk. Collection and storage of personal information of customer are
considered to be important for day to day operation for banks. Analyzing the overall damages
from privacy loss and policies and laws mainly tends to highlight the fact of how bank should
collect and share their consumer data (Jia et al., 2015). In most of the cases, customers are given
the right about informing the data which should be used for privacy policy communication.
Government need to provide all the required information for supporting for effort, which will
prevent money laundering and any kind of terrorism activity.
Bank’s needs for ICT workload types
ATM (Automated Teller Machines) is considered to be most suitable example of ICT in
banks. Banks make use of mainframe computer for maintaining the accounts of customer. It is
mainly needed for dealing with transaction that is generated as a result of withdrawals and
deposits (Nedelcu et al., 2015). SWITCH and DELTA are considered to be two main types of

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debit card that is used in UK. It is mainly needed for paying for goods and services instead of
given mode that is cash or cheques. This particular kind of payment system is defined as EFT.
Two kind examples of how bank can make use of ICT transactional workload are
Clearing cheques: As soon as the cheque is written and paid to the bank that is in process
then it can be stated as clearing cheque. This particular step comes into picture for connecting the
amount that is transferred from one given account to another (Agwu, 2018). Cheques are
completely processed by making use of MICR.
Smart card: It is considered to be very much similar like credit or debit card that has
inbuilt microchip. It can be easily used for storing data in more secure and reliable way.
Two kind examples of how bank can make use of ICT analytics workload are
Risk management: Banking industry tends to completely rely on risk where loan and
investment need to be completely evaluated (Hegadekatti & SG, 2016). In banks, BI can be used
for providing insight into the present system.
Marketing and Sales Automation: By making use of volume of data, banks can easily
provide the unimaginable information for each of the given customers (Garg et al., 2017). It
merely will provide much better understanding concerning the need of the customer.
Benefits of using cloud technologies in banking sector
There is large number of benefits of using cloud technologies in bank. Cloud computing
can easily improve the overall efficiency in the whole banking sector. Cloud technology will
digitize the services that will allow bank and other financial institutes to have infrastructure for
providing best services to the customers (Lundberg & Åkesson, 2015). Cloud computing will
provide secure transaction and much smoother experience for customer in banks. Both
Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) software

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are considered to be well known technology of cloud computing. By the help of software, both
banks and financial institutes for securing their data along with providing much better support to
its customer (Hegadekatti & SG, 2016). With this software, user can have remote access to all
the required information.
Why major banks use mainframes
In the banking sector, mainframes are considered to be favourite with the whole banking
sector. Most of the banks and financial institutes need mainframe in the centre of technology.
Compatibility mainframes are considered to be compatible with various languages COBOL, Java
and many other languages (Нетецька, 2018). Banks tend to integrate the data of large number of
customer and transaction for overall working. Mainframes come up with huge amount of data
which can handle the dynamic scenario. Mainframes come up with capability of performing in
relation to the hardware and particular specification. It is mainly needed for performing without
any kind of errors (Ijaz et al., 2017). Bank cannot afford to have any kind of downtime where the
customer is able analyze the balance and withdraw require money from the bank. In general,
banks deal with lot of information that is sensitive and confidential. Mainframes come up with
the security to ground it up.
Conclusion
The above pages of the report help us concluding the fact that this report is all about bank
and other financial institutes that makes use of mainframe. Bank tends to rely on mainframe for
carrying out list of processes like capacity, security and intelligence. Mainframe mainly comes
up with capability of handling more than 2.5 billion financial transactions on day to day basis. It
can be stated as one of biggest reason which is needed for handling core component of the
banking practices. Technology like cloud computing can easily play a key role in making

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changes in the business and operating model. Bank can easily make use of cloud services for
range of process like analytics where the score is calculated based on real-time in each of
financial transaction. It is merely needed for understanding the overall likelihood of fraudulent
activity. In the above pages of the report, the main reason behind the use of mainframes has been
discussed in brief.

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References
Agwu, E. (2018). The role of e-banking on operational efficiency of banks in Nigeria. Available
at SSRN 3122498.
Garg, A., Grande, D., Miranda, G. M. L., Sporleder, C., & Windhagen, E. (2017). Analytics in
banking: Time to realize the value. Режим доступа: http://www. mckinsey.
com/industries/financial-services/our-insights/analytics-in-banking-time-to-realize-the-
value/(дата обращения: 18.03. 2018).
Нетецька, Т. М. (2018). ICT vocabulary and grammar in use: self-study practice book.
Hegadekatti, K., & SG, Y. (2016). Roadmap for a Controlled Block Chain
architecture. Available at SSRN 2822667.
Ijaz, U., Khalid, H., Abubaker Ijaz, A. H., & Butt, I. (2017). Development of Cloud Computing
Based Intranet Model for Banks and Financial Institutes to Use Resources Efficiently for
Achieving Flexibility in Activities and Work Portability. NFC IEFR Journal of
Engineering and Scientific Research, 5.
Jia, G., Han, G., Jiang, J., Sun, N., & Wang, K. (2015). Dynamic resource partitioning for
heterogeneous multi-core-based cloud computing in smart cities. Ieee Access, 4, 108-118.
Lundberg, E., & Åkesson, C. (2015). Cloud Computing-Factors that affect an adoption of cloud
computing in traditional Swedish banks.
Nedelcu, B., Stefanet, M. E., Tamasescu, I. F., Tintoiu, S. E., & Vezeanu, A. (2015). Cloud
Computing and its Challenges and Benefits in the Bank System. Database Systems
Journal, 5(1), 45-58.

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Ware, E. O. (2015). Computerised accounting system an effective means of keeping accounting
records in Ghanaian banks: A case study of the Ga Rural Bank. International Journal of
Research, 111.
Yan, G. (2017, July). Application of Cloud Computing in Banking: Advantages and Challenges.
In 2017 2nd International Conference on Politics, Economics and Law (ICPEL 2017).
Atlantis Press.
Include a link of video of PPT from YouTube <To be Done by Student>