back to blog

What Is Cloud-Based Digital Banking and Why You Should Choose It

What Is Cloud-Based Digital Banking and Why You Should Choose It

Banks and financial institutions have begun to migrate more and more to the cloud over the past few years, as the financial world has had to find fresh solutions to today’s industry challenges. In this regard, cloud computing technologies have proven to be true game-changers, and an important part of the recipe for success, which businesses activating in the financial field have tried to figure out. With the integration of the afore-mentioned technologies into the mix, cloud-based digital banking was born, and thus financial institutions had taken the next step in their digitalization journey.

But before we see how cloud-based digital banking has changed the face of the financial industry, allow us to briefly define the concept, and shed some light on the matter.  

What is cloud-based digital banking?

To find the answer to this inquiry, we must first take a look at how cloud computing technologies work; simply put, the cloud refers to a global network, that runs on the internet, by means of which users are able to access, manage, and store information. In other words, this technology makes use of remote network servers, which allow those who turn to the cloud, to easily take advantage of computer system resources, such as those surrounding data storage capabilities and computing power. So, to answer our initial question, we can state that cloud-based digital banking entails adopting and managing the necessary infrastructure, that enables banks and institutions offering financial services, to handle banking operations and systems in the cloud.

Those activating in the financial industry, have the possibility to choose from various cloud models; on one hand there are deployment models, that include private cloud, public cloud, community cloud, and hybrid cloud, and on the other, there are the so-called service models, a category of cloud models that can be subdivided in PaaS (platform-as-a-service), IaaS (infrastructure-as-a-service), and SaaS (software-as-a-service). Each model of course has its pros and cons, in terms of deployment models for example, private cloud offers more control and security than public cloud, however, the latter, provides scalability and increased flexibility, and can be more economical. When it comes to service models, banks and financial institutions often prefer the SaaS (software-as-a-service) model, as it allows users to perform various operations, including transactions, without having to download any banking software.

But enough about cloud models, let’s jump right in and see exactly how the implementation of cloud-based digital banking has benefited those who offer financial products and services.

Benefits of cloud-based digital banking

Improved customer experience

Keeping their clients happy has always been a priority for banks and financial institutions, so naturally, the latter were thrilled to witness how the integration of cloud computing technologies had a positive impact on customer experience. In this sense, cloud banking platforms were able to address clients’ needs in a more efficient way, helping those who activate in the financial industry retain their customers and attract new ones. How? Well, by storing and analysing large volumes of data, with the help of the cloud, financial institutions can gain valuable insights and understand consumers’ behaviour better than ever. As a result, they can offer personalized offers and suggestions, anticipate clients’ requirements, assist the latter in making operations faster and in a more secure environment, which all translates into a superior customer experience.   


The costs surrounding traditional IT infrastructure can send a shiver down banks and financial companies’ spine, but luckily, cloud-based digital banking relieves one of such worries. This solution entails significantly reduced costs, as those who choose the afore-mentioned model can pay only for the services that they currently need, having the opportunity to increase or decrease computing capacity as they go. It is due to this greater scalability that cloud-based digital banking benefits those activating on the financial scene, in ways that other strategies have failed to. What’s more, by assisting banks and financial institutions in their fight against cybercrime, cloud computing technologies allow them to avoid expenses occasioned by financial crimes.

Agility and innovation

Cloud-based digital banking provides the important advantage of agility, which means that banks and companies carrying out their activity in the finance world, can easily respond to the changing environment that they have to adapt to, in order to stay afloat. Those who adopt cloud-digital banking are able to overcome any challenges that they encounter, meet customers’ expectations, and deliver products and services in a timely manner, much to the satisfaction of consumers. And it is for these reasons that financial companies are turning to fintech software development services more and more, so that they can enjoy the perks of optimized operations and innovation.  


Cloud banking has stolen the spotlight in the past few years, and for good reason, as this solution offers numerous benefits to those who choose to adopt it. Agility, flexibility, cost-efficiency, and an enhanced customer experience are some of the advantages that have caught the eye of banks and financial institutions. Consequently, the latter have begun to reach out to specialized companies more often to help them integrate cloud computing technologies across all business levels. And one of the preferred location for banks is Romania, where one can find the right banking software solutions development company for any project.