FORMATIVE ASSESSMENT 2
Cloud computing is a type of on-demand service that provides access to shared resources,
applications, or storage over the Internet. It enables financial institutions to store and process
data in remote servers instead of local systems. While the financial industry has been slow to
adopt cloud technology due to concerns about giving up their legacy on-premises applications,
regulatory compliance and data privacy issues, this position is starting to change as more
financial institutions realise how technology can help them meet their business objectives while
satisfying customers’ needs at the same time. Answer ALL the questions in this section.
Question 1
Usage of cloud computing in finance has skyrocketed throughout the pandemic and is showing
no sign of slowing down anytime soon. The shift to remote working has resulted in more
financial businesses utilising cloud-based technologies than ever before. Discuss the business
benefits of cloud computing in the financial sector.
Question 2
While there are many benefits to using cloud technology in banking, the challenges that come
with cloud adoption may be the reason so many financial institutions are lagging behind other
industries. Discuss the challenges that could arise from banks’ migration to the cloud
environment.
Question 3
The common application used on the cloud platform by the banking sector is customer
relationship management (CRM) systems. One of the biggest challenges that many banks are
facing these days includes meeting their clients’ expectations. To stay afloat, they must have
in-depth knowledge of each client they serve and act faster than competitors. Therefore, many
teams invest heavily in CRM for banks. Discuss possible reasons for banks to use CRM
software.
Question 4
In relation to question 3, banks have the choice of utilizing on-premise or cloud-based CRM
applications. Critically discuss the differences between on-premise and cloud-based CRM
systems. Include your view on the best option banks should consider.