Cloud Computing Innovations in the Financial Services Industry: Benefits, Challenges, And Opportunities.

Abstract: Cloud computing has become a catalyst for change in the financial services industry. To be competitive, organizations are realizing that cloud computing is becoming an essential tool in a constantly evolving digital environment. For companies in the financial sector looking to stay flexible and competitive in the face of global upheaval, cloud computing has become significant in this digital age (Carr, Pujazon, & Vazquez, 2018). With customers seeking more digital solutions, meeting these demands efficiently and effectively can require significant amounts of resources and time. Cloud computing can help organizations develop innovative solutions within their resource constraints, and do so in a more timely fashion. To understand cloud computing’s impact on financial services so it can be leveraged effectively, it will be important to identify the benefits, challenges, and future opportunities.This study seeks to achieve the following. First, we strive to assess the impact of cloud computing on innovative processes within financial services organizations and highlight the benefits. Second, we intend to examine the challenges and obstacles that financial institutions encounter in implementing and using cloud solutions. After achieving the aforementioned objectives, the study aims to offer a thorough grasp of how cloud computing is revolutionizing the financial services industry and identify future opportunities.To accomplish these objectives, we will conduct a literature review and thematic analysis (Braun & Clarke, 2006). The results will identify the benefits, challenges, and future opportunities of cloud computing in the financial services industry. We will discuss cloud technologies’ ability to improve essential aspects such as consumer engagement, organizational agility, providing new services, cutting costs, and operational efficiencies. Other benefits to be addressed include cloud-based platforms assisting in innovation by enabling financial product development cycles to be completed more quickly, successfully meeting new consumer demands. We will examine the challenges as well such as issues associated with storing sensitive data on the cloud raising the danger of data leaks and cyberattacks. Other challenges to be addressed include software identity management, perceived low-security levels, incompatible infrastructure, and compliance issues.Future opportunities to be addressed will include effective technology management and rigorous security assessments to address the previously noted problems. Other opportunities to be highlighted will include implementing emerging technologies such as artificial intelligence for fraud detection. This paper intends to contributerecommendations for practitioners to capitalize on the benefits, address the challenges, and seize opportunities that exist or are coming into existence. We intend to summarize our findings into a framework that practitioners and researchers can utilize in their endeavors. Research topics will also be proposed, such as focusing on methods of removing the identified obstacles and investigating new strategic approaches.REFERENCESBraun, V. & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology (3:2), pp. 77-101.Carr, B. P. D. V. J., Pujazon, D., & Vazquez, J. (2018). Cloud computing in the financial sector part 1: an essential enabler. Institute of International Finance.

Keywords: Cloud Computing, Financial Services, Innovation

DOI: 10.54941/ahfe1006211

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