THE ROLE OF EDGE COMPUTING IN THE DIGITAL TRANSFORMATION OF BANKING AND FINANCIAL SERVICES

Abstract

Edge computing, a new form of distributed cloud, offers a range of opportunities for new and old bank and finance companies to increase profitability. Edge computing is playing a vital role in the digital transformation of banking and financial services. By bringing computation and data storage closer to the network edge, it enables real-time processing, enhances operational efficiency, improves data security, and delivers a personalized customer experience. Thanks to edge computing, companies can leverage new innovations like AI, ML, IoT and the blockchain. Despite the challenges of implementation, bank and finance companies worldwide have witnessed significant benefits, such as faster transactions and improved customer insights, embracing edge computing is crucial for staying competitive and meeting the demands of the digital era. This article focuses on understanding and analyzing the role of edge computing in the process of digital transformation in the financial and banking services. The article also presents applications, benefits, challenges, and solutions, as well as real-world achievements and the future prospects of this technology in the financial and banking industry in Vietnam.