Pub. 5 2015-2016 Issue 3

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE With cloud-based programs, you will no longer have to worry about hardware, system security, disaster recovery, backup or operating system upgrades. HANK THOMPSON EXECUTIVE VICE PRESIDENT BSG FINANCIAL GROUP Moving Your Institution to the Cloud is a Sound Decision “T he world that we live in is a mo- bi le -f i rs t , c loud-f i rs t world.” -Satya Nedalla, CEO of Microsoft Though some financial institutions may be hesitant to adopt cloud-based services due to security and privacy concerns, make sure you know the benefits that “second generation” cloud providers can offer before you become a naysayer. Cloud providers that have financial services expertise--and are sensitive to IT and compliance requirements--can offer sound solutions that help your institution reduce costs and better manage resources. Reduce Capital Investment Financial experts forecast that by 2016 poor return on equity will drive more than 60% of financial institutions worldwide to process the majority of their transactions in the cloud. As traditional methods continue to deliver decreasing profits, it will become even more apparent it is in your FI’s best interest to locate and use a properly hosted cloud-based vendor. By incorporating a cloud-based service, much of your IT capital expense will move to your operating expenses. No matter the size of your business, this allows you to reduce capital investment in hardware, software and related infrastructure. You will be able to rely on a more predictable budget and higher cash flow. The money saved on IT infrastructure and services can be reinvested in other areas. Ensure Security A huge advantage to cloud-based programs is first-rate security. Cloud providers that are in compliance with the Service Organization Con- trols (SOC2) established by the American In- stitute of Certified Public Accountants (AICPA) and the Statement of Standards for Attestation Engagement, (SSAE16) must meet stringent re- quirements for monitoring and security. These strict security standards include Extended Validation (EV) SSL encryption technology and firewalls that prevent unauthorized electronic access to servers to protect FDIC-insured payments. These high-level security measures ensure safety for your FI and your customers. Maintain Business Continuity Cloud-based operations bring a variety of advantages to other functions, as well, such as business continuity. With cloud-based pro- grams, you will no longer have to worry about hardware, system security, disaster recovery, backup or operating system upgrades. The cloud offers complete failover redundancy, by taking care of your disaster recovery and backups with one solution. Your customers’ data will be encrypted as it is transported to, and while it lives in the cloud platform, and only your financial institution has the keys to unencrypt that data.  For more information about cloud-based financial solutions, please visit www.BSGFinancial.com.