Table of Contents
What is Cloud Technology?
Before we discuss cloud technology for wealth management, we need to define what cloud solutions are. It’s a type of IT tech that involves developing and storing your system on an external server. In general, you can obtain such technology in three forms:
- Software as a Service (SaaS) – You pay regularly for cloud-based software.
- Platform as a Service (PaaS) – You pay for access to a platform where you can develop your own cloud-based wealth management solution.
- Infrastructure as a Service (IaaS) – You pay regularly for the infrastructure, for instance, the servers on which you will store your system.
What is worth mentioning is that you can also opt for a private cloud – a solution where a server is dedicated only to your company. This might be helpful in terms of security, though remember – the fact that the solution is tailored to you doesn’t mean that it employs better security measures than more general ones.
Cloud-Based Solutions for Wealth Management – Why Are They Worth It?
Now, let’s examine the benefits of cloud technology for wealth management systems. How is it better than traditional, local IT infrastructure? Here are the main advantages.
Scalability
Behind every software, there are hardware – devices that need to be powerful enough to run the systems. This means that if you use your own servers, you need to upgrade them along with the number of processes run by your wealth management system.
This is different for cloud technology. Due to its being hosted on outside servers, you do not have to worry about the hardware’s capabilities nor make new investments as the system gets heavier. Hence, even a large boost in the number of customers and processes run daily/simultaneously won’t affect your bank negatively.
Security
Data security in wealth management is critical, and cloud systems help you ensure it. They are much better than in-house solutions when it comes to protecting your information from cyber attacks. Why is it so?
A cloud-based wealth management solution is placed on external servers used purely for such technology, and often owned by larger companies. Such servers are equipped with more expensive and complex security measures – ones that would be difficult to maintain in-house. Additionally, such systems also eliminate local attack surfaces – a phishing campaign targeted at your bank, even if successful, won’t get into the system if it’s not physically present on the infected device.
Cost-Effectiveness
Cloud technology is often much less expensive than traditional solutions. There are three reasons behind this:
- Cloud technology doesn’t require you to create a whole IT infrastructure and reduces the investment in hardware (and space to store it).
- Cloud technology is more efficient for wealth management, as it centralizes the data and may be used in real-time quickly.
- Cloud technology is flexible – it can be accessed from anywhere, meaning that your employees might work remotely, decreasing your operating costs.
Reliability and Versatility
As mentioned before, cloud-based wealth management solutions can be accessed from anywhere. In practice, this means that your wealth management can access important information and calculations even when they are on their way to the clients. But that’s not the end of it.
Since cloud technology for wealth management does not need to be stored on your devices, it doesn’t create hardware conflicts – situations in which you wouldn’t be able to use your system on a particular type of device. It’s also less prone to errors and bugs caused by the interactions between the hardware and software, making it much more dependable.
It’s Ready
While you can develop your own local or cloud-based wealth management system, you’ve got an alternative – there are many digital solutions for wealth management that are ready and waiting for you to obtain them. Take, for instance, our LiveBank platform – it has all the features you need for intelligent portfolio management and customer service, and it even comes with a mobile app for your WMs to contact the clients conveniently.
Conclusions
Cloud technology is an excellent, flexible, and cost-effective solution for any institution, including banks and other financial services providers. Hence, we recommend switching to such software and embracing its advantages. If you want to learn more about our particular cloud-based platform for wealth management, don’t hesitate to contact us—we’re happy to help!
You might also read: Digital Transformation for Your Banking Services
