What is the definition of 'cloud computing' in the financial services sector?

The concept of 'cloud computing' in the financial services sector is defined as the delivery of computing services over the internet. This approach allows organizations, including those in finance, to access a range of services such as storage, processing power, software applications, and networking resources on-demand without the need to invest in and maintain physical infrastructure.

This model offers immense flexibility and scalability, enabling financial institutions to respond quickly to market changes and customer needs. By utilizing cloud services, banks and other financial entities can lower operational costs, enhance collaboration, and improve overall efficiency. Additionally, cloud computing enables better data management and security through advanced technologies and infrastructure provided by cloud service providers, which is particularly crucial in an industry that must adhere to strict regulatory requirements and safeguard sensitive customer data.

The other options reflect more traditional computing methods, focusing on physical servers or local storage systems that do not align with the agility and broader resource capabilities that cloud computing offers.