How a Cloud-based Calculation Engine Can Optimize Efficiency for a BusinessBy Kamran Khalid, Chief Product Officer - Unity on 09-11-2022
Historically, financial institutions have been using siloed systems for their calculation needs. With the advent of cloud computing and adoption by these institutions, financial cloud-based calculation engines came into existence. Learn how these engines are beneficial for your business.
Benefits of Cloud Computing
There are numerous benefits of cloud computing for businesses, but the most prominent ones are data security and cost effectiveness. Almost all major cloud providers have robust security protocols in place to ensure that the systems cannot be penetrated into. Contrary to popular belief, cloud-based storage and computing can in reality be more secure than an on-premise system.
Secondly, cloud computing operates on the pay-as-you-go pricing model. Essentially, it enables businesses to pay for the services they use on an 'as-needed' basis. Another major benefit is the remote accessibility and team collaboration maintaining consistency amongst multiple siloed teams and systems.
Contrary to popular belief, cloud storage and computing is more secure than most on-premise systems.
With pre-configured functions, cloud-based calculation engine free up IT resources, mitigates applied calculation logic and essentially enhances the efficiency of operations. According to McAfee Cloud BU, cloud computing enables companies to achieve 19.3% faster growth over their rivals with non-cloud computing IT structures.
Cloud Computing and the Financial Services Industry
The financial services industry, including insurance firms, banks and finance and leasing companies, were historically one of the slower adopters of cloud computing. Due to their large business size and portfolios spread over billions of dollars and multiple continents, cloud computing offers a plethora of benefits to such businesses, shifting the paradigm from moving to the cloud from legacy on-premise systems. This has given rise to multiple types of cloud-based calculation solutions for relevant organizations as well.
The industry can now provide an outstanding customer experience by unifying their data onto a single system accessible from anywhere around the clock. Moreover, cloud systems are developed to enhance efficiency which essentially means optimizing resource allocation needed along with a variable pricing system. This enables financial institutions to scale up or down as per their needs automatically.
Solution and technology providers for financial institutions like NETSOL Technologies have developed regional regulatory compliant systems enabling banks and finance and leasing companies to transcend borders without worrying about regulations. NETSOL consistently focuses on research and development and enhancing their core products to ensure state-of-the-art solutions updated with all legal and regulatory compliance requirements.
Calculation Engines: The Game Changers
Developed to replace manual calculation systems, the benefits of cloud calculations greatly outweigh legacy systems. Manual operations usually run in siloed systems such as MS Excel, point solutions or access databases.
NETSOL has developed regional regulatory compliant systems enabling banks and finance and leasing companies to transcend borders without worrying about regulations.
The drawback of this method, as compared to cloud calculation technology, is that firstly, it requires significantly higher manual intervention by the relevant teams, prevents real-time analytics and practically mitigates the understanding of applied calculation logic. With increasing dependency on data, an increasing middle class and higher requirements for leasing assets, it adds stress on the IT department along with the core systems for data processing. This, in turn, means that critical calculations will take too long to complete.
This is where a finance calculation engine comes into play. Cloud-based calculation engines ease out this process by centralizing and automating complex calculations, freeing up human resources and system allocation. Through cloud calculation technology, multidimensional calculations are simplified due to predefined fields and backend mathematical functions pre-configured.
Flex: An Engine of Value
Flex is one of the many such cloud calculation solutions for businesses that covers a whole range of calculation types related to credit-based functions of any industry. It can be used as a cloud solution for small businesses as well as large enterprises due to its robust adaptable nature. Calculating rental payments, annuities, dealer broker incentives, balloon payments and much more has been intensely simplified with the help of this cloud-based calculation engine. Financial institutions have multiple systems working in siloes for their calculation procedures which occasionally results in inconsistent calculations especially at the customer end. Flex can be connected to multiple systems with the same backend code, ensuring consistent results through-out the ecosystem.
Flex creates an ecosystem of value through out-of-the-box integration capabilities. It futureproofs your company by being integrable with any front-end, whether it's on a desktop, tablet or a mobile phone.
Flex creates an ecosystem of value through out-of-the-box integration capabilities. It futureproofs your company by being integrable with any front-end, whether it's on a desktop, tablet or a mobile phone. With native integrations possible, it can autoscale as per business requirements and provide end-to-end calculations throughout the contract lifecycle. With Flex, business disruptions due to system downtime on day-end and month-end can be avoided due to its cloud-based deployment. Through various calculation types, Flex provides penny-accurate calculations throughout the contract lifecycle. To explore Flex, please visit www.flexengine.io/
Kamran Khalid, Chief Product Officer - Unity
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