The right cloud computing model for your financial institution: public versus community cloud
In today’s competitive, fast-paced financial services industry, cloud-based core banking technology is a catalyst for growth for financial institutions in emerging economies. Cloud-based core banking systems are more accessible for small financial institutions than traditional on-premise systems. Equally as important, cloud-based core banking systems enable financial institutions working in remote, hard-to-reach communities to offer digital financial services. Through the cloud, financial institutions can serve individuals in hard-to-reach and remote areas with world-class banking services. An increasing number of visionary financial institutions are moving to the cloud to benefit from this disruptive technology and get ahead of the rapidly changing digital financial environment.
Choosing the right cloud computing model and the right cloud-service provider (CSP) is key to reaping the full benefits of cloud technology. As is the case for every decision about technology, the cloud computing model you choose must meet your business needs and growth goals.
What is the right cloud type for your financial institution’s needs and goals: Public or community cloud?
There are several reasons and advantages for financial institutions to opt for a community cloud rather than a public cloud.
Public cloud model: According to Microsoft, a public cloud model has “an infrastructure that is owned and managed by the CSP and located off-premises from the customer. Although the data and services are protected from unauthorized access, the infrastructure is accessible by a variety of customers.
Community cloud model is a revolutionary cloud computing model which focuses on enhanced business value and optimal security standards. According to Techopedia, this model is “a hybrid form of private clouds built and operated specifically for a targeted group, such as financial institutions.” The targeted group has similar requirements for security, compliance, reliability and resilience. Their goal is to work together toward achieving their similar business objectives. The infrastructure may be owned and managed by members of the community or by a CSP.
Community cloud: the optimal choice for financial institutions
For all financial institutions, data security is vital. A core banking system hosted through a community cloud model provides your financial institution with the maximum level of security for your financial institution’s operating environment: secure data storage, a protected network, and privacy.
Privacy within the community cloud
Unlike public cloud, within the community cloud model, each customer’s data is stored in a separated database. For instance, only Oradian’s community of financial institutions has access to Oradian’s community cloud system. Each financial institution within the community cloud operates in its own private, isolated space.
Community cloud provides better control over the infrastructure than public cloud
Oradian’s community cloud for financial institutions can, for example, be tailored to comply with specific security and regulatory requirements of a given country.
“The biggest technical differences between community clouds and public clouds are the functionality characteristics that have been tailored for whatever industry the community cloud serves” Andi Mann, Vice President of Enterprise and Cloud Solutions for CA Technologies. www.pcworld.com
Maximum level of security that meets international security standards
Currently, all our institutions are hosted on a single instance of the code, within a group of data centres dispersed through the EU. These data centres are protected by a multi-layered security model that is compliant with key industry standards such as ISO/IEC 27001. This model includes perimeter security, video surveillance, security personnel, sophisticated access controls system and protection from external and environmental threats.
Community cloud: greater operational agility for your financial institution
Our core product has been specifically developed to integrate with third party solutions and to embrace the fintech revolution now happening in the world. Oradian built Instafin, its cloud-based core banking system, with an open Application Programming Interface (API). This makes Instafin a flexible system that allows for integration with other delivery channels.
Instafin interacts with external systems such as payment gateways/switches and external providers like SMS/messaging service providers. When those external systems send requests and submit data to Instafin, they act as clients of Instafin API. All communication with those systems is authorized, done through an encrypted channel, and carried through JSON messaging over HTTPS.
Flexible and scalable infrastructure: Easy relocation of data
With Oradian’s community cloud technology, you enhance your IT risk management while making it easier for your financial institution to comply with your local regulatory requirements. Community cloud-based system is fully portable if local regulations dictate that hosting must be in the country, while this smooth migration would not be possible with public providers
In compliance with the Bangko Sentral ng Pilipinas – BSP’s Circular 808
Cantilan Bank became the Philippines’ first financial institution regulated by the Bangko Sentral ng Pilipinas (BSP) to leverage Oradian’s cloud technology to deliver digital financial services. Oradian’s cloud technology meets the requirements of the BSP’s Circular 808 that is enhancing the competitiveness of rural banks and enabling them to provide affordable, high quality financial services.
The outcomes when working with Oradian: Secured, real-time data that is readily available at the click of a button.
Visionary financial institutions around the world are moving to community cloud to make their operations more secure, more efficient and more affordable. Ready to join them?