In the 17th century, wealthy merchants no longer comfortable with the government resorted to the practice of depositing their money with goldsmiths. After each deposit or transaction, a receipt was issued by the goldsmiths.
These receipts later became money.
The goldsmiths served as bankers, they were involved with:
- The production and sale of silverware,
- The exchange of foreign coins for local ones.
- Providing loans/credits to potential clients.
The financial services offered by the goldsmiths was a breakthrough. It saved the wealthy merchants the stress and cost involved in transporting gold from one location to the other.
Like the goldsmiths of old, Cloud Computing is bringing a transformation to the financial environment.
Cloud Computing uniquely affects the financial institution:
- It creates a multi-channel relationship with the customers in every aspect of the service.
- It helps in storing, backup and recovering of huge data for the company
- It increases the turnover of the banks by integrating cost-effective cloud solutions.
Deloitte in their recent financial services industry outlook explained that financial firms should redesign their technology architecture by accepting simplification, automation, and modernization.
And what better way is there to modernize, simplify and automate the financial industry than cloud computing.
How is Cloud Computing Used by Financial Services Companies?
Cloud computing is used in several ways by financial services and banking industries, It is used for:
- Customer Relationship Management (CRM)
- Marketing Automation
- Business Intelligence
1. Customer Relationship Management (CRM) Software:
According to Peter Drucker, “The purpose of business is to create and keep a customer.”
Businesses have to focus their all on creating and keeping a customer, to do this successfully, companies need to figure out a way to successfully maintain that relationship without burning out.
CRM software is the best way to maintain that relationship. CRM software gathers customer information and documents every one of them into a single database to ensure that the business users can easily have access to it and manage it properly.
CRM systems have a variety of functions which includes; recording customer interaction over phone, email, social media and other channels.
CRM software is a necessity for many financial companies, they are used for processing claims, modeling portfolios, completing Know-Your-Customer (KYC) verification and a lot more.
Various features can be found on CRM software and these features include:
- Billing and invoicing
- Know-Your-Customer (KYC) verification
- Financial account management
- Mobile applications
- Calendars and scheduling
- Price Quoting
- Automated alerts and notifications
2. Marketing Automation:
Marketing automation aims to increase efficiency which is particularly useful in banking and FinTech. For the banking industry, customer satisfaction is a major goal. Which is why CRM and Marketing Automation works hand-in-hand. Automated processes make it easy to better handle customer interactions. Projects can take a huge toll on both resources and manpower. Automated processes eliminate these processes by focusing on customer interaction, social media management, and lead nurturing.
Marketing automation helps to increase leads, conversions, and sales. Marketing automation also helps in the reduction of cost and helps to improve customer experience. According to research by Digital Market Institute, about 44% of marketers believe that in 2020, Automation will become an important skill in 2020. Not surprising as it helps to increase sales. Marketing automation is making it easier for banking and FinTech to better handle their projects. Examples of marketing automation software include: Marketo, Hubspot
3. Business Intelligence:
According to MicroStrategy, “Business Intelligence is the collection of strategies and tools used to analyze business information. Business intelligence projects are significantly more effective when they combine external data sources with internal data sources for actionable insight.”
There is a lot to be gained from the raw data available to companies. And most competitive financial companies understand the importance of turning this raw data into useful and actionable insights. This is where Business Intelligence comes in. It helps financial companies to transform raw data into useful information which can be acted upon. Business Intelligence checks key areas such as customer satisfaction, employee performance and a possible increase in sales. Business Intelligence tools are used to check CRM, web traffic and more to determine Key Performance Indicator (KPIs). Business Intelligence is also used to help companies understand their data and take meaningful and action-driven decisions on those data.
Cloud Computing is violently shaping Banking and FinTech.
- Customer Satisfaction and Interaction
- Social Media Management
- Increased leads, conversions, and sales
These are some of the ways in which Cloud Computing is helping to shape banking and FinTech. If you have any questions reach out to me with the mail on my bio.