Abstract:

Cloud computing has become a cornerstone of digital transformation in the financial services industry, offering significant advantages in terms of scalability, cost efficiency, and innovation. Financial institutions are leveraging cloud platforms to streamline operations, reduce IT infrastructure costs, and enable rapid deployment of new financial products and services. This review paper explores the profound impact of cloud computing on financial institutions, focusing on how it enables enhanced operational efficiency, fosters innovation through advanced data analytics and AI integration, and improves customer experiences by providing personalized and real-time services. However, the adoption of cloud technologies also presents challenges, particularly concerning data security, regulatory compliance, and the management of complex cloud environments. Financial institutions must navigate stringent regulatory frameworks, ensure data privacy, and manage the risks associated with multi-cloud environments to fully harness the benefits of cloud computing. This paper provides a comprehensive analysis of these benefits and challenges, along with an exploration of the evolving cloud computing models, such as hybrid and multi-cloud strategies, and their applications in finance. By examining current trends, including the integration of artificial intelligence, blockchain, and multi-cloud strategies, the paper sheds light on the future trajectory of cloud computing in the financial sector. The findings underscore the transformative potential of cloud technology in finance, while also emphasizing the need for robust strategies to address associated risks and ensure sustainable growth in an increasingly digital financial landscape.