What’s the Best Data Warehouse Approach for Banking Analytics?

A cloud-based data warehouse is the best approach for modern banking analytics. The markets of today are driven by massive economic and customer changes brought on by extensive digitization and advanced technology tools. In this new space, where data is increasingly growing in relevance, the key to staying competitive is to effectively analyze and utilize data via advanced banking analytics. Choosing the right data warehouse approach for banking analytics can add real value to banking operations and presence. Here’s a guide.

What is a cloud data warehouse vs. on-premise data warehouse?

In simple terms, a cloud data center is a repository for storing data. A cloud data center is often located away from the actual business premises and allows data access via the internet. Unlike in a traditional on-premise data warehouse, where all ongoing maintenance and updates, services, and support is managed and maintained by the business – in a cloud data warehouse, all services are provided by the cloud provider.  

Top 4 Benefits of a Cloud Data Warehouse

  • It effectively minimizes business disruption.
  • Reduces CapEx costs since there is no need to buy or maintain hardware or invest in facilities, IT support teams, and physical premise.
  • Supports quick and seamless scaling up/down of IT needs to align with business demands.
  • Delivers robust data security at all times – business data can be quickly recovered regardless of any emergency including natural disasters and power and data outages.

Conversely, on-premises data centers, as the name suggests, are private data centers managed and run by the company on its own premises. Organizations that need complete physical access to all their data at all times prefer on-premise data centers. As such, the company is responsible for every aspect of running and managing their on-premise data center. If required, on-premise data centers can be enabled to run private clouds – these can also be run by leasing third-party tech infrastructure. 

Top 4 Benefits of On-premise Data Centers

  • The organization has complete control over all their business data.
  • Ideal for businesses that function under stringent industry regulatory control and are required to maintain complete compliance.
  • The on-site IT/Tech teams responsible for on-premise data centers can quickly address an issue or problem thus preventing extended server downtime.
  • On-premise data centers can be customized to address specific IT infrastructure specification requirements of the organization. 

What is the most common use of cloud data warehouses for banking analytics?

When deciding on the best data warehouse approach for banking analytics, the core considerations before a bank include the following: 

  • Maintaining a consistent omni-channel experience.
  • Gaining a competitive advantage over clients.

Both goals are data-driven. However, one of the primary limitations of on-premise systems when it comes to banking analytics is that they don’t support broad data storage scale-out and data processing. In comparison – a cloud data warehouse is designed as a highly scalable option designed with advanced BI and analytical capabilities which can effectively deliver value in financial services.  

What is a common cloud data warehouse design for banking?

The banking sector has been slow to cloud adoption, when compared to other industries. The hesitation is primarily driven by the need to effectively address security, compliance, and privacy concerns. However, banks and financial institutions are now opening up to cloud solutions because of the kind of extensive benefits cloud offers when it comes to banking analytics. 

The preferred cloud options for banks is either private clouds or the adoption of hybrid and multi-cloud solutions to drive enterprise transformation. This is because both private and hybrid cloud solutions support the required adherence to the industry’s security, governance, and compliance regulations. They also deliver the flexibility of the cloud infrastructure while retaining the predictability and security of an on-premise system. 

What are the benefits of a cloud data warehouse for banking analytics?

top 5 benefits of cloud data warehouse for banking analytics:

Greater Flexibility

Cloud data warehouse solutions can help banks to be competitive, adaptable, and have flexibility to scale and upgrade without having to worry about business disruptions or downtime.  

Enhanced Agility 

One major drawback of using conventional or legacy systems is that it impacts business agility. A cloud data warehouse solution, however, delivers enhanced agility to banks that want to keep up with changing consumer demands and the advancing tech/digitization curve by enabling them to provision and allocate resources to improve business delivery. 

Risk Mitigation

Cloud effectively reduces business risks presented by traditional technology solutions which among others include, redundancy and resiliency issues, while also enhancing security.

Safe and Secure Banking Services

Data and cloud-enabled banking services deliver greater safety and security with robust security options such as data encryption, SSL management, and improved credentialing.  

Cost Reductions

One of the primary benefits of a cloud data warehouse solution is that it offers significant cost savings by doing away with capital-expenditure involved in buying and maintaining of traditional IT infrastructure. It also delivers better control over computing capacity during peak customer demand which in turn can lead to improved business efficiency. 

What are the most popular cloud data warehouse solutions for banking analytics? 

Here are some of the top cloud data warehouse solutions for banking analytics:


Powered by real-time analytics, Snowflake’s cloud data warehouse allows easy data access in a single, globally-available platform and is designed to support compliance and regulatory objectives and address data-driven decisions.

Google Cloud Platform (GCP)

Google’s BigQuery is a serverless and highly scalable data warehouse designed to support banking analytics demands with superfast, real-time, and predictive insights. 

Amazon Web Services (AWS)

AWS is capable of supporting banking analytics while also addressing stringent security, compliance, and regulatory needs of the financial sector.

Microsoft Azure

Azure is again a leading banking cloud data warehouse solution capable of delivering robust risk management and can support stringent industry regulatory compliance demands and regulatory pressures.

IBM Cloud

IBM Cloud for Financial Services offers a transparent public cloud ecosystem with robust security, compliance, and resiliency capabilities for financial institutions. 

In addition to the above mentioned cloud data warehouse solutions, two other popular cloud solutions for banking analytics include Oracle Autonomous Data Warehouse and SAP Data Warehouse Cloud. 

Do I need a cloud data warehouse solution consulting partner near me?

If you have an in-house IT team trained in the cloud, you might not require the services of a cloud data warehouse solution consultant. However, if you don’t have an in-house expert, then it’s judicious to partner with a local cloud data warehouse solution consulting partner ant. Your cloud data warehouse specialist will be able to help you with understanding which solution is the best fit for your business needs and also help you plan and implement your cloud data warehouse migration strategy. Don’t like the cloud consultant options near you? Then partner with a preferred expert data team who has a proven and established virtual workflow and communication plan.

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About NextPhase.ai

NextPhase.ai is evolving the way companies utilize data. Our mission is to assist our clients in harnessing the power to turn data into insights – that drive growth. Whether you’re developing a cloud data strategy, migrating terabytes of data to the cloud or implementing a brand-new cloud data warehouse contact us to request a Free Workshop. Let our experts show you how easy it is to get started unlocking your enterprise’s data for actionable insights. Some of the Clients in our portfolio that we have successfully partnered with include – Apple, Google, Ellie Mae, US Bank, Visa, Wells Fargo, Stanford University, Equinix, Genentech, Fisher Investments, Pandora and Twitter. Have questions on cloud data initiatives for your business? We can help. Contact us at hello@nextphase.ai or Schedule Workshop to know which of today’s Modern Data Platforms is best suited for your business needs.