PAYMENTS
How has cloud elasticity changed the way financial institutions handle market volatility and peak trading periods compared to traditional infrastructure?
Ramandeep Singh: The ability to scale up and down is one of the most powerful and differentiating features offered by cloud platforms. Traditionally, financial institutions overprovisioned hardware and infrastructure to cover for occasional spikes and peak times.
This approach led to a lot of idle capacity during non-peak hours and created bottlenecks during unexpected loads and surges.
With cloud elasticity, financial institutions are now able to provision appropriately and plan for scaling up and down as needed.
They can handle higher volumes due to surges, market announcements, holiday seasons and more in a cost-effective manner.
Elasticity also enables certain applications and workloads, such as real-time data streaming and processing, real-time risk calculation, advanced fraud analysis, realtime portfolio adjustments, market surveillance and large-scale data lakes. For example, financial institutions benefit from higher compute capability during holiday seasons, scalability during high lending cycles like student loans during college admissions, and more.
This capability allows the financial services industry to perform better capacity planning, on-demand scaling and handle market volatility more effectively and cost-efficiently.
Alasdair Anderson: Cloud elasticity has redefined the ability to scale computational resources during volatile market conditions. Previously, institutions had to overprovision infrastructure for peak loads, leading to inefficiencies.
Now, with auto-scaling and serverless computing, firms can dynamically allocate resources in response to real-time demand.
This elasticity is particularly valuable in high-frequency trading and stress testing scenarios, ensuring that infrastructure constraints never hinder execution speed or capacity.
“ Banks are leveraging multi-cloud and hybrid strategies to comply with jurisdictional regulations while maintaining operational efficiency”
ALASDAIR ANDERSON, VP OF EMEA PROTEGRITY fintechmagazine. com 101