Why is it that banks are now finally cashing in on the public cloud? Because till now banks and financial institutions feared that their confidential data and information would get stolen if they used the services offered by public cloud service providers. 

Banks and financial institutions are huge sectors of the economy that play a very important role in socio-economic development in the US. This explains why they were not ready to compromise with the confidential data and other applications of their customers. 

Data security was one of the main concerns for banks 

Public cloud service providers understand the concerns of the banks and financial institutions and accordingly they undertook security measures to assure their banking clients that the confidential data and information of their customers would be absolutely safe.

Public Cloud: reduce expenditure, increase flexibility and efficiency

Cost, time, accessibility and flexibility are some of the factors that explain why banks are finally cashing in on the public cloud. Now senior executives in banks and financial institutions realize the benefits of public cloud as it is quite an agile and cost saving model. There is no need to incur any expenditure on hardware and software as the software keep on updating after every 6 months or even less. They just need to update their hardware for the compatibility of new versions of software. 

Public cloud vendors provide flexible and efficient solutions as per the requirement of their clients. They only need to pay for what and how much they use. The processing speed can be increased during peak hours and can be slowed down at other times. 

Capital One is among the first banks to adopt Public Cloud 

For quite some time banks and financial institutions hesitated to talk about public cloud openly as they feared about data security but the turning point came last October when the Chief Executive Officer of Capital One, Rob Alexander stated that his company uses AWS (Amazon Web services) for its technological strategies. 

Capital One is one of the largest bank holding companies in the US, offering credit cards, home loan, auto loans and other financial services to its users and businesses, They are building, testing and running their most critical mobile and banking applications on the AWS platform. 

At the same time Alexander says that security is one of the biggest issues that prevented banks and financial institutions to adopt public cloud. Therefore, they are now working with AWS to build a security model for data and information and thereby make public cloud more secure than their own data centers. 

Public cloud is highly accessible, easy-to-handle and cost saving model for everyone. In order to reduce the workload on their data center, Rob Alexander said his company transferred most of the applications onto the AWS platform. As they had eight data centers of their own, they intended to reduce the number to three by 2018 and host most of their data and information on the public cloud provided by AWS.

World Bank reveals that Public Cloud is highly safe  

World Bank is one of the largest global financial institutions and the goal of this bank is to reduce poverty by providing loans to developing countries for their socio-economic development programs. In 2012 when Stephanie von Friedeburg became the CEO (Chief Executive Officer) of World Bank and set out to introduce the bank to cloud services.

She found it very difficult to make her colleagues understand the efficiency of public cloud and why it is more secure and easily accessible. She found them to be paranoid and harbor notions like ‘public cloud means all of the bank’s vital data is accessible freely and without any restrictions.’ They believed the data is not secure and confidential information could easily get compromised if they use public cloud.

However, Stephanie vod Friedeburg worked hard and made people realize the importance of public cloud. After lot of negotiation Stephanie vod Friedeburg succeeded in her efforts at outweighing the disadvantage of using Public Cloud. The World Bank now started migrating its many applications and software to the AWS public cloud platform and stated that soon they will reduce the number of their data centers to two from five.

As the goal of the World Bank is to reduce poverty by providing financial assistance to developing countries or Government, it needs to bring about flexibility in its functioning and reduce the overall cost of maintaining mail servers in each of the 186 countries where it is present. They migrate approximately 30,000 notes licenses to one Microsoft exchange server. Now the employees of World Bank use Amazon Web Services and Microsoft Azure public cloud platform to build and run their applications.

For exchanging their data and files, documents related to loan etc., employees of World Bank start using Box, Dropbox and OneDrive to save data so they can access them anywhere, anytime from their mobile devices.