Introduction
The finance and leasing industry is increasingly leveraging calculations on the cloud to power their businesses - and it's hardly surprising. Cloud calculations offer several advantages over calculations processed on on-premise solutions, including lower costs, greater flexibility, and improved scalability. This article examines some specific advantages cloud calculations can offer financial institutions, including banks, automotive and equipment finance and leasing companies.
What are Cloud Calculations?
Primarily delivered through Software as-a-Service (SaaS) solutions, cloud calculations enable organizations to securely execute, store, manage and share financial calculations on the cloud. It is designed to streamline workflow, improve efficiency and accuracy, and save time and money. With cloud calculations, an organization can create, edit and collaborate on several financial models anywhere, at any time.
Finance and leasing companies require complex calculations (to determine lease payments, interest rates, APRs, etc.) to be completed regularly to conclude different stages of the contract lifecycle and assess the viability of potential investments. These calculations can be time-consuming and expensive to carry out, particularly if they are required on a large scale. Cloud calculation services provide a cost-effective solution for these businesses, allowing the calculations to be executed swiftly and accurately without the need for expensive hardware or software.
In addition, cloud calculations can be carried out remotely, meaning businesses can access the data and results from anywhere in the world. As a result, cloud calculations have started to become increasingly popular for finance and leasing companies. The key benefits of cloud calculations for the finance and leasing industry are mentioned below.
One of the primary advantages of cloud calculations is that they can help improve the accuracy of an organization's financial calculations.
Improved Accuracy
One of the primary advantages of cloud calculations is that they can help improve the accuracy of an organization's financial calculations. That's because cloud-based solutions give you access to real-time data, which means you can make calculations based on the most up-to-date information available. On-premise solutions, on the other hand, often rely on outdated data sets, which can lead to inaccuracies in your calculations.
Cloud-based solutions are designed to handle fluctuating workloads without any degradation in performance.
Greater Flexibility
Another advantage of cloud calculations is that they offer greater flexibility than on-premise solutions. This flexibility can be beneficial when assessing the impact of different potential scenarios. With a cloud-based solution, you can easily adjust your assumptions and recalculate your projections on the fly. That's not always possible with an on-premise solution, which can be rigid and inflexible.
Auto-scalable
Cloud calculations can also help improve the scalability of your finance and leasing operations. That's because cloud-based solutions are designed to handle fluctuating workloads without any degradation in performance. On-premise solutions, on the other hand, often struggle to keep up with sudden increases in demand, which can lead to bottlenecks and other problems.
Cost Savings
Cost savings are another key benefit of using cloud-based calculations. With on-premise solutions, finance and leasing businesses must bear the cost of purchasing and maintaining their hardware; with cloud-based solutions, these costs are borne by the service provider. In addition, cloud-based solutions often offer a pay-as-you-go pricing model that can save businesses money compared to traditional fixed-cost models.
Calculations on the cloud ensure no business disruption.
24/7 Availability
Finance and leasing calculations are complex. They require significant computing resources and are often time-sensitive. Any downtime due to month-end, day-end, or any other periodic process delays can be costly for any business, so it's essential to have a solution that is available 24/7. Calculations on the cloud ensure no business disruption and can provide the uptime needed to support the complex processes of the industry.
Conclusion
Cloud calculations offer advantages over on-premise solutions, including improved accuracy, greater flexibility, and scalability while ensuring 24/7 availability. Cloud-based calculation engines can be integrated into an ecosystem providing a centralized database which allows organizations to calculate and access data from different locations.
Furthermore, the database required for the growing volume of calculations may be too massive for standard data processing systems leading to delays in critical calculations. Data volume is increasing. Business complexities are becoming more intricate. Consequently, the dire need to improve efficiency is no longer being satisfied by the old, respective isolated systems, making cloud calculations more valuable than ever.
A cloud-based calculation engine is worth considering if you're looking for a way to power your finance and leasing operations through cloud calculations. A cloud-based calculation engine that guarantees penny-accurate calculations is Flex.
Flex can be integrated with multiple systems with the same backend code, ensuring consistent results throughout the ecosystem.
Flex is an instant cloud-based calculation engine that guarantees swift calculations at all stages of the contract lifecycle through various calculation types. It can be integrated with multiple systems with the same backend code, ensuring consistent results throughout the ecosystem. This guarantees no discrepancies among multiple systems within an organization, as the same calculation engine is integrated with multiple systems.
Flex gives any organization or system the ability to carry out fundamental, multi-dimensional, and complex calculations with absolute precision. Click here to explore more.
Written By:
Kamran Khalid, Chief Product Officer - Unity
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