Cloud banking has changed the way financial institutions do business in emerging economies. Cloud-based services enable visionary financial institutions to control their portfolios, work more efficiently, scale their business, and futureproof their organisation.
The key is choosing the right hosting and cloud-service providers (CSP) and selecting the type of cloud that best meets your financial institution’s needs: a private or community cloud.
A community cloud is shared by several businesses but operated by a single cloud service provider. It is common in the financial services sector, as it maintains privacy, performance, and compliance standards among different organisations.
A private cloud is managed by your own institution. It is totally private and secure, but development, integration, security and regulatory concerns are your responsibility, increasing cost and workload for your staff.
Key differences between the two types of cloud that make the community cloud a superior choice for financial organisations:
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Community |
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Infrastructure
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Private cloud infrastructure is totally isolated
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Cloud infrastructure is shared by a community of businesses, designed to meet the technological and regulatory needs of their industry – each business has their own private and secure area on the cloud. |
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Maintenance
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Your institution assumes full responsibility for deployment, development, maintenance, integration, and security
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The CSP assumes full responsibility for deployment, development, maintenance, integration, and security, saving you valuable time and money
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Staff costs
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You must employ specialist IT staff
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You only require staff knowledgeable enough to operate cloud-based technology, freeing your budget for other priorities
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Updates
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An isolated infrastructure must be updated by your institution
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The community cloud receives updates automatically to respond to new security threats and technological developments, guaranteeing you the most up-to-date service
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Scalability
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Your scalability is limited by your ability to invest in additional hardware
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Grows or shrinks with the size of your workload, meeting your business demands without impacting performance
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Security
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Secure and isolated from threats
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Secure on your business’ private cloud area, but community updates ensure other companies using the cloud have the same security standards
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Regulatory compliance
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You are totally responsible for your own compliance
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Community clouds are designed to meet the regulatory needs of your business community, lowering the risk of non-compliance
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Data storage
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Your data is at risk if your private servers are damaged or tampered with
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Data is hosted at several data centres, ensuring secure storage, high uptime, and business continuity in the event of disaster
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We hope this explains the benefits of hosting your banking data on a community cloud-based architecture. If you would like to know more about how Oradian hosts our customers’ data across the world, get in touch with one of our experts using the form at the bottom of this page or email the team.
