The Nawanagar Cooperative Bank Ltd., like many others in that segment, need to compete against private banks with deep pockets and increase risk management products such as derivatives through effective deployment of IT solutions. Cloud computing, with its infrastructure, platform, and software on demand model seemed to be the ideal answer. Today, it can offer its customers internet banking, online money transfer, ATM and mobile banking among others, like its privately held rivals and larger public sector banks.
This is one of the many such cooperative banks adopting IT on cloud. Pondicherry Co-operative Urban Bank is another bank to have adopted cloud computing in recent times, leveraging world class IT solutions at affordable costs for the benefit of its customers.
Adoption of the cloud by banks is growing in India. Around 53 banks have opted for cloud computing to access core banking solutions, with urban cooperative banks taking the lead, according to data from Reserve Bank of India. Small banks, especially in India, have a tight hold on cash flow and face manpower limitations. For such banks, shared high-end data centres and virtualization technologies make economic sense and also make the latest core banking solutions available at a fraction of the cost. This enhances customer experience and provides a level playing field for banks to compete against larger rivals. These banks that are nimble can now focus on innovative products and scale up their business faster than before.
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