Growing financial services organizations, from insurance companies and commercial lenders to market disrupters, are turning to ERP solutions like NetSuite and Acumatica to take control of their operational and financial data and processes. The power of cloud-based data centralization, combined with the flexibility of ERP system configuration, enables the secure exchange of information between departments, vendors, and even customers—and, put simply, the resulting cost-savings, efficiencies, and visibilities is just what they need to move into the future with a competitive edge.
When you’re thinking about replacing your on-premise business systems with a single cloud-based solution—or going “all-in” from the beginning with a cloud-first strategy—consider these reasons other financial services companies are choosing cloud ERPs:
1. Industry-Centric Capabilities
Financial services ERP solutions—systems designed specifically for companies in the finance industry—provide the specific functionality today’s competitive players need to operate efficiently and provide the highest levels of service. Whether your company’s challenges center around customer engagement, vendor payments, or sales, today’s ERP suites offer the tools that make a difference and drive tremendous growth.
For instance, SRS Acquiom, a provider of closing and post-closing services for private company mergers and acquisitions, implemented NetSuite’s cloud-based ERP to help manage their diverse business processes, including marketing and CRM, sales pipelines, data storage, billing, accounting and financial reporting. With customizations to make sure their business system fits into (and enhances) their workflows, the company has grown to support tens of thousands of external clients across 97 countries and nine global offices.
2. Optimal Data Security
Financial services organizations are responsible for personal information that goes far and deep—and safeguarding it is paramount. There simply isn’t room for a breach. ITSP Magazine points out that data breaches have disproportionately impacted financial services firms, who fall victim to cybersecurity attacks 300 times more frequently than companies other industries.
While it’s not reported whether these attacks occurred on on-premise vs. public cloud servers, when your data lives on paper or in legacy (i.e. unsupported) onsite servers, you inherently face more risk than when it’d digitized and protected according to the most up-to-date protocols. With cloud computing, your data is managed by highly specialized personnel in secure data centers offering a level of cybersecurity protection that’s hard to achieve on-premise.
In fact, according to Deloitte CIO Insights and Analysis featured in The Wall Street Journal, financial services organizations are getting more comfortable keeping their data in the public cloud. “Increasingly,” the commentary states, “many public cloud providers can better accept and protect regulated financial services data and help speed company responsiveness to regulators, allowing organizations to establish operations in other countries more quickly while still meeting in-country regulatory requirements.”
Get more insights in The 5 Risks of Using An Outdated ERP Solution.
3. Grow-Forward Scalability
The fintech marketplace, in particular, is booming—to say the least. New entrants are making their mark, creating disruption as well as opportunity. It’s imperative that established financial services organizations “keep up” with their direct (and indirect) competitors when it comes to both back-office and client-facing technology, as both impact the top and bottom lines. Cloud-based ERP systems deliver that agility and functionality, thanks to their web-based service model and integration-ready architecture.
Why else would 76% of the finance and IT executives surveyed by Oracle say that they either have or will soon move to the cloud? “There’s now no question,” Oracle concludes, “cloud ERP has become the standard.
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Find out how we help organizations in the financial services industry strategically update their IT environments and transform operations with modern, cloud-based ERP systems—and contact us for a free consultation.
Additional ERP Resources:
Checklist: What to Expect in a Cloud-Based ERP System
3 Reasons Your Employees Want Cloud-based ERP Software
The 8 C’s of ERP Selection and Implementation: Making the Most of Your Journey
