Wealth managers are increasingly opting for cloud-based solutions to minimize operational complexities and expenses.
FREMONT, CA: Cloud solutions have benefitted a wide range of industry verticals. The technology’s ability to host and offer a plethora of services and solutions has increased its essence immensely. The financial industry is also leveraging cloud-based services and solutions for various purposes. Wealth management is one such financial aspect that can benefit from cloud-based solutions. The cloud helps wealth management firms in two ways. If a business is large and has a development team that creates solutions in house, the cloud serves as a platform to develop and test these solutions and their interaction with the legacy environments. Secondly, if a firm doesn’t have a team of agile developers, then mobile and analytics solutions already exist in the cloud and can be availed at affordable prices. Further, here are some of the key advantages of relying on a cloud-based approach than leveraging conventional wealth management approaches.
Avoiding the Reliance on Expensive Data Centers
The emergence of technology transformed financial firms unimaginably. The capital markets industry that used to have very few expensive assets categorized under critical infrastructure, companies were forced to spend a massive amount on technology — including the cost of expensive data centers. Wealth management firms were particularly under pressure until the cloud-based solution came to their rescue.
Artificial intelligence and machine learning will gain further traction within wealth management services. In addition, the growth in alternative and financial data will also add to the management overheads for the firms. Addressing such costs will not just be complex but also expensive. Instead, wealth managers can go for cloud-based solutions to save money as well as efforts for business development purposes.
With a massive surge in fraudulent activities and the inherent nature of capital markets, wealth managers are constantly trying to enhance their security preparedness. While developing in-house security solutions can be costly as well as prone to risk due to its obvious storage location, cloud-based solutions can offer a safer haven for the financial data.
With an increase in the affordability and security of the cloud-based solutions, wealth managers are opting for the same.
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