7 reasons why wealth managers are gravitating towards cloud-based solutions

7 reasons why wealth managers are gravitating towards cloud-based solutions

In the realm of wealth management, there is an increasing preference for cloud-based portfolio management software, a shift driven by the multiple advantages these solutions present. WealthArc has outlined seven major reasons behind the rising adoption of cloud-based alternatives over traditional on-premise options.

Security is paramount for wealth managers transitioning from on-premise solutions to the cloud. Recent cyberattacks on on-premise servers have underscored that they are not necessarily safer. A notable breach occurred in March 2021, when hackers took advantage of a security loophole in on-premise Microsoft Exchange email servers, compromising the email accounts of at least 30,000 US-based organisations. Cloud-based servers, however, were immune to this assault.

Cloud data centres utilise security protocols that most businesses can’t afford, making your data more secure in the cloud than on a server within your office. Cloud providers frequently roll out security updates, while on-premise systems necessitate EAMs (External Asset Managers) to monitor and manually implement these updates.

WealthArc, a SaaS (Software-as-a-Service) platform for wealth management, operates on Microsoft Azure, meeting the stringent security standards demanded in finance.

Cost-effectiveness is another substantial draw of cloud-based solutions. There’s no requirement for any initial investment in infrastructure. The pay-as-you-go model means you pay for only the resources you use. In contrast, on-premise systems require forecasting your infrastructure use for several years in advance, necessitating the purchase of servers that ensure ample long-term capacity.

In the event of service outages, the contingency plans differ significantly between on-premise and cloud computing. On-premise requires infrastructure redundancy and backup systems to maintain business continuity. With robust cloud computing services, these redundancies and fail-over capabilities are inherently built-in.

Scalability is a further advantage. The cloud provides nearly infinite computing and storage capabilities, accessible whenever required. Additionally, cloud-based solutions provide data access anywhere, anytime, a particularly invaluable feature in the era of remote work brought about by the COVID pandemic.

Setting up a cloud infrastructure is virtually immediate, a stark contrast to the lengthy process required for on-premise infrastructure. Plus, maintaining an on-premise system demands IT expertise, while cloud-based system providers manage any issues internally, freeing you from this responsibility.

Pioneers of cloud-based asset management software will inevitably be the market leaders of tomorrow. WealthArc is leading the charge as the first wealth management platform hosted natively on Microsoft Azure. It effectively mitigates the limitations of outdated on-premise tools, enabling EAMs to maintain business continuity during lockdowns and other unforeseen events. Additionally, it helps our clients appear innovative in the eyes of investors. We’re convinced that cloud technology is the future of wealth management, offering a competitive edge to those who invest in it now.

Read the full report here.

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