European Journal of Molecular & Clinical Medicine Cloud Computing Technology -A Digital Transformative Solution For Banking Industry- An Overview

Abstract

The banking industry hosts a large amount of customer data and is always anxious with providing the best services to its customers. In such a scenario, cloud computing technology is the contemporary transformative digital solution that offers unprecedented security, quickness and scalability to banking industry, while improving the ability to manage customer data. Several benefits are offered by Cloud technology such as cost effectiveness, enhanced data processing capacity and high-end financial services, digital accountability, transparency and timeless. Additively the application of cloud computing in banking industry provides the relative solution for the security issues. Large banks, building their own customized financial cloud as a precise tool, in contrary small banks relying on public financial cloud for a cloud service provider, can help their business to grow quickly and effectively by reducing information gap with limited man power. This paper is intended to provide an overview to this advanced technology and advantages of the cloud computing of banking industry above the traditional banking processes.

Full text

European Journal of Molecular & Clinical Medicine
ISSN 2515-8260 Volume 07, Issue 02, 2020
5305
Cloud Computing Technology – A Digital
Transformative Solution For Banking Industry-
An Overview
*Dr. Sukhavasi Santha kumari
M.Com.,MBA.,M.Phil.,AP-SET.,Ph.D.
Asst.Professor, Dept. of Commerce, Koneru Lakshmaiah Education Foundation
Vaddeswaram., Guntur-522502. A.P.
Santa8023@gmail.com
sukhavasisantha@kluniversity.in
**Dr. N. Aruna
M.Com., M.Phil., NET., Ph.D
Principal, Vignan Jyothi Institute of Arts & Sciences, West Marredpally
Secundarabad-Telangana
narunagoud@gmail.com
ABSTRACTThe banking industry hosts a large amount of customer data and is always
anxious with providing the best services to its customers. In such a scenario, cloud computing
technology is the contemporary transformative digital solution that offers unprecedented
security, quickness and scalability to banking industry, while improving the ability to manage
customer data. Several benefits are offered by Cloud technology such as cost effectiveness,
enhanced data processing capacity and high-end financial services, digital accountability,
transparency and timeless. Additively the application of cloud computing in banking industry
provides the relative solution for the security issues. Large banks, building their own
customized financial cloud as a precise tool, in contrary small banks relying on public
financial cloud for a cloud service provider, can help their business to grow quickly and
effectively by reducing information gap with limited man power. This paper is intended to
provide an overview to this advanced technology and advantages of the cloud computing of
banking industry above the traditional banking processes.
Key words: Banking industry, Cloud computing, Digital solution, Financial Services,
Security.
1. INTRODUCTION
The consumer centric approach and the advanced competing climate is urging banks for
introducing its digitalization programme as essential. All the changes made industry to think
again the position of banker more as an “enabler” than a contributor of products and services
levering to a wide scope for cloud technology an off the rack solution. This transformation
involves 3 successive stages, one being the development of required clouds, second one featured
the transformation of technology infrastructure, finally, involving far-reaching changes in the
organization, in digital environment it will achieve strategic positioning, Whereas banking
industry is at neo- adaptation stage our current concern is to envisage the scope for fast paced

European Journal of Molecular & Clinical Medicine
ISSN 2515-8260 Volume 07, Issue 02, 2020
5306
adoption of cloud technology. Though the cloud services provide a wide range of storage of
data, flexibility in storage, distribution and enabling the data remotely with ease, poses various
challenges to the providers like protection and confidentiality for the data stored in the cloud.
2. AN OVERVIEW OF CLOUD TECHNOLOGY IN BANKING SECTOR
The arrival of cloud technology has transformed banks to increasingly adopt cloud technologies
to fulfill their varied purposes which could react as early as possible for the needs of new
entrants to respond for new business requirements. This can accumulate and organize the data on
virtualized servers so that, the applications, individuals and organizations as on whole world can
enable the records and this computing resources from anywhere and at anytime which increases
the reliability since the information and applications stored and backed up on several computers
which the possibility of loss of data and application. The financial institutions pay for operating
costs as well as salaries for their utilized services. It supports in reducing expenses with no
efforts and can check the results of new applications from cloud and existing conservative
infrastructure. In cloud computing, organizations begin for saving their information in the cloud
where need of security arises. Due to, all firms have begun migrating their data to cloud,
chances for hacking, unauthorized usage of services and etc. are possible. So, it is important to
protect the data saved in cloud is to be ensured with the support of providers of cloud services.
Now-a-days business organizations started using big data which is cloud based, to analyze and
improve its sales performance to endure in the marketplace to win the competitive market.
Reason to use the cloud system is its cost advantage and security provision. Within a short period
of time, using the improved technologies for analytics cloud helps to improve the performance of
a business. Cost reduction is possible with Cloud computing for the provision of resources and
creation of environment.
3. REVIEW OF LITERATURE
Lucian Alexandru Fratila and Procedia (2013) analyzed that the providers of cloud service is
safe than any other choice to promote and able to offer enhanced expanding, readiness towards
market, reduced expenses and safety. Banks can execute a public or a hybrid cloud result can
take a regulated style like employing a authority or firm which constructing with the cloud.
Rieger, P., Gewald, H., & Schumacher, B. (2013) identified that for taking the decision of
application of cloud computing in offering services by banks the cost also plays a major role
being a financial factor. This cost effective decision creates pressure to provide the products of
competitive nature and which leads the banks to focus on standardization of these products
which is possible with this cloud computing. A particular bank‟s competitive advantage depends
upon the cost structure of their business products and services offered to their customers.
Because of this cloud computing there will be a reduction in costs.
K. Sudhakar (2014) opined that Banks have to choose a realistic method for data privacy along
with security in cloud. Several financial institutions segregated the records of data among various
stages based on sensitivity from bottom level which published broadly without any limitations to
particularly secure which can be accessible by only top-level decision makers. Banking services
organizations are starting to opt this technology for so many fields.
A. Mahalle, J. Yong, X. Tao and J. Shen, (2018) mentioned in their paper that banks and
financial services those with internal information technology security team which establishes a

European Journal of Molecular & Clinical Medicine
ISSN 2515-8260 Volume 07, Issue 02, 2020
5307
security framework a stable assessment of this construction and maintaining as per changing
state of affairs is important. With the existing problems in the system, there is a chance of attack
from outsiders is there and hence it should be the priority that is cloud security for banking.
4. RATIONALE OF THE STUDY
To limit the demand and supply gaps of services in banking industry, the industry has to opt a
progressive technology as an essential solution. This study gives a brief understanding on one
such technology that gives promising alternative for the bottle necks in service delivery.
5. OBJECTIVES OF THE STUDY
1.To address the high-end consumer centric services.
2.To envisage Scope of big data storage in banking sector.
3.To consider relative advantage over conservative banking procedure of cloud computing.
6. APPLICATION OF CLOUD TECHNOLOGY FOR BANKING SERVICES
Now this technology is quickly changing its role as very essential in computing framework. This
computing can modify wholly the picture of financial services. Unlike the traditional system of
data storage, cloud storage provides various benefits to the users like easy transfer of files like
pull and go down in between local storage to cloud storage, web source to send and receive the
files, easy accessibility to the stored data with low cost and in addition to this, safety to the data
stored and easy repossession at emergency are also the added advantages of present technology.
Anybody at any time will have the access based on pay-per-use with cloud from the institutional
level of the system of banking. The majority of the informational technology experts agreed that
with the application of this cloud technology, there will be reduction in capital and functioning
costs and minimum power consumption is possible and it saves time and increases its operating
efficiency.
Cloud computing is a web service that could be used by a diverse set of consumers like MSMEs,
educational institutions, hospitals, IT based companies and etc., depends on their requirements
like OS, processors strength, tools and applications, this service is used to store and retrieve the
used data from time to time.
This technology is treated as a business model. Now this technology is not a device which is
used in IT, but it changed the entire business world as a new business model. This enables the
companies to get the services based on IT through internet. This cloud based business model
offers the business organizations minimum investment, moderate working expenses, and price
based on use. This cloud computing services in banks can be operated at various levels such as
infrastructure, software, platform and commercial procedure. In cloud each variation has its
specification in banking services.
The main variations in cloud technology are-
Public clouds: Public clouds through a network channel are enables the IT services of third
party providers by extending the competencies of a data centre. The cloud providers can be
shared the data and processing on certain framework to other customers or tenants from
anywhere of the world.
Private clouds: Private clouds are assembled in the inherent data centers of banks through the
execution of virtualization. In case of private clouds, these are creates highly protected habitat
which cannot be disclosed outside tenants.

European Journal of Molecular & Clinical Medicine
ISSN 2515-8260 Volume 07, Issue 02, 2020
5308
Hybrid clouds: Hybrid clouds are a mixture of both private and public clouds and based on the
understanding of the data and application in all mechanism, and the level of seriousness and
discrimination of the business. Many banks are following the hybrid cloud strategy though they
have own cloud and situated inside of the bank and it is maintained by external persons.
Public “Sovereign” cloud: The public “Sovereign” cloud an emanate option and here the public
cloud providers perpetrates for keeping cloud data and transform under a particular jurisdiction.
It makes the convenience the acceptance with the data security rules and regulations threatening
the personal data from transfer away from the national borders.
Cloud computing is influenced by many third-party service providers. Though the data are saved
in cloud and the hard copy needs to be stored either in the document form or in any of the
electronic form. It is not even understood by many people that, In Cloud data is saved in „service
farm‟ which is like warehouse where any quantum of information stored and retrieved whenever
the need arises.
7. BENEFITS OF CLOUD COMPUTING
The Cloud computing is a data services prevailing in the market using internet based services.
The service provider offers efficient and effective services even in the utilization of cloud space.
The improvements are to be implemented by the service providers in its cost consumption and
technique of scheduling. On demand self service is also one of the main characteristics of cloud
computing which provides various services which requires no interaction of human by the
assistance of other service providers.
1. Centralization of data that pools the information giving easily enabling at a particular time and
place.
2 IT-based technology cost is declining consistently cloud computing is better to go to this
technology.
3. Banks can reach customer demands and scale very fastly, continuous provisioning of
resources of computing with well designed cloud computing technology
4. High speed service deployment gives a running edge in providing better quality and quantity
over conventional procedures.
5. Provides strategic edge in contemporary competitive private and public sectors.
6. It enables the employees to collaborate across distributed branches for trade access.
8. CHALLENGES OF CLOUD COMPUTING
Though the cloud computing technology is existing conception to banks, there was a delay in
undertaking this technology into operation in conjugation with lack of core banking application
solutions further delayed the process with following other challenges.
1. Lack of skilled personnel is the major catch.
2. Confidentiality of data might be at a risk.
3. Network connectivity dependency might tamper the quick services.

European Journal of Molecular & Clinical Medicine
ISSN 2515-8260 Volume 07, Issue 02, 2020
5309
4. Lack precise knowledge on regulations of data storage and security.
5. All customers in a neo-adaptive stage quality of services might be compromised because of
limited experience.
9. CONCLUSION
Cloud computing can prove as an essential which provides solutions for various new demands
for agility, clarity and competence. Reducing markets and worldwide competition is becoming
reason for several challenges. This technology gives several offers such as swiftness, elasticity
and original data need to meet the challenges on cost-reducing purpose. Continuous
advancement of this technology for banking sector and vendors is essential to overcome these
challenges. Though there are several benefits, cloud computing endures a limited acceptance rate
among the organizations which require this type of services. The banks must implement their
cloud to have related and suitable security. Financial and other service institutions are going to
take on cloud computing technologies for several areas such as mobile applications and checking
of modernization and micro banking also.
10. REFERENCES
1. A. Mahalle, J. Yong, X. Tao and J. Shen, (2018). Data Privacy and System Security for Banking
and Financial Services Industry based on Cloud Computing Infrastructure. IEEE 22nd
International Conference on Computer Supported Cooperative Work in Design ((CSCWD)),
Nanjing, 2018, pp. 407-413, doi: 10.1109/CSCWD.2018.8465318.
2. Asadi, S., Nilashi, M., & Yadegaridehkordi, E. (2017). Customers perspectives on adoption of
cloud computing in banking sector. Information Technology and Management, 18(4), 305-330.
3. Awadallah, N. (2016). Usage of cloud computing in banking system. International Journal of
Computer Science Issues (IJCSI), 13(1), 49.
4. Bhuvaneswari, N., Trinathbasu, M., Srisathvik, M. &TEnali, R.K. (2019), Identity based security
auditing for data sharing with sensitive information hiding using cloud storage, International
Journal of Innovative Technology and Exploring Engineering, vol.8, no.6, pp.1327-13333.
5. Bose, R., Luo, X. R., & Liu, Y. (2013). The roles of security and trust: Comparing cloud
computing and banking. Procedia-Social and Behavioral Sciences, 73, 30-34.
6. Chandrakala,N.&Thirumala Rao, B. (2018). Migration of Virtual Machine to improve the
Security in Cloud Computing. International Journal of Electrical and Computer Engineering,
vol.8, no.1, pp.210-219.
7. Cuesta, C., Ruesta, M., Tuesta, D., & Urbiola, P. (2015). The digital transformation of the
banking industry. BBVA Research (available at https://www. bbvaresearch. com/wp-
content/uploads/2015/08/EN_Observatorio_Banca_Digital_vf3. pdf).
8. Frăţilă, L. A., Zota, R. D., & Constantinescu, R. (2013). An analysis of the Romanian internet
banking market from the perspective of cloud computing services. Procedia Economics and
Finance, 6, 770-775.
9. Ghule, S., Chikhale, R., & Parmar, K. (2014). Cloud computing in banking
services. International Journal of Scientific and Research Publications, 4(6), 1-8.
10. Gowtham Kumar, N. Polala, N. &Aruna Kumari, D. (2018). New approach for securing cloud
applications. Proceedings of the 2nd International Conference on Inventive Systems and Control,
ICISC 2018, pp. 689.
11. Hon, W. K., & Millard, C. (2016). Use by banks of cloud computing: An empirical study. Queen
Mary School of Law Legal Studies Research Paper, (245).

European Journal of Molecular & Clinical Medicine
ISSN 2515-8260 Volume 07, Issue 02, 2020
5310
12. Jyoshna, B. & Subramanyam, K. (2018). A frame work for data locking in cloud. Journal of
Advanced Research in Dynamical and Control Systems, Vol. 10, no. 4 Special Issue, pp. 1-8.
13. Karimunnisa, S., Kompalli, V.S. (2019). Cloud computing: Review on recent research progress
and issues. International Journal of Advanced Trends in Computer Science and Engineering,
vol.8, no. 2, pp. 216-223.
14. Lin, A., & Chen, N. C. (2012). Cloud computing as an innovation: Perception, attitude, and
adoption. International Journal of Information Management, 32(6), 533-540.
15. Marella, S.T., Karthikeya, K., Preetham, B. &Ahammad, S.K.H. (2019). The rise of “Big data”
in the field of cloud analytics. International Journal of Advanced Science and Technology, vol.
28, no. 8, pp. 222-233.
16. Naresh, T., Kaua :alsj,o, A. & Reddy, V.K. (2019). Resource optimization suing cloud
scheduling. International Journal of Innovative Technology and Exploring Engineering, vol. 8,
no.6 S2, pp. 184-189.
17. Omarini, A. (2017). The digital transformation in banking and the role of FinTechs in the new
financial intermediation scenario.
18. Rani, S., & Gangal, A. (2012). Security issues of banking adopting the application of cloud
computing. International Journal of Information Technology, 5(2), 243-246.
19. Rieger, P., Gewald, H., & Schumacher, B. (2013). Cloud-computing in banking influential
factors, benefits and risks from a decision maker's perspective.
20. Sandhya, K, & Subrahmanyam, K. (2017). Optimization of resource provisioning cost with
execution in reliable cloud data storage. Journal of advanced Research in Dynamical and
Control Systems, vol. 9, no. Special Issue 6, pp. 434-443.
21. Sreelatha, K. & Krishna Reddy, V. (2019). A comprehensive survey on cloud computing related
challenges and issues”, international Journal of Recent Technology and Engineering, vol. 7, no.
ICETESM 18, pp. 196-200.
22. Sreeram, G., Kanumuri, M.K. &Bodduluri, M. (2019). Improving cloud data storage
performance based on calculating score using data transfer rate between the internetwork drives.
International journal of Engineering and Advanced Technology, vol. 8, no. 4,pp. 1830-1835
23. Sudhakar, K., Kumar, G. V., & Rani, L. S. (2014). A View on Cloud Computing in the Banking
Sector. International Journal of Computer Science and Information Technologies, Vol. 5 (3),
2014, 3305 – 3308.