How Cloud Computing is Changing the FinTech Industry
Posted: June 8th, 2022
The 2020s are the era of the cloud. According to the 2020 IDG Cloud Computing Study, a sizable slice of companies’ IT budget (32%) is dedicated to the purpose of cloud computing.
For an industry like financial technologies or FinTech. Cloud computing has proved to be an instrument that drives toward efficiency and cost-effectiveness. With this, the banking and financial sectors have embraced cloud computing and have started optimizing their process of payments and transactions.
Furthermore, the banks and financial institutions are happy to use the advantages of secure storage, interoperability, scalability, and 24/7 uptime without heavy investments. This also means that scaling your business to higher user demand is much easier because it only takes upgrading the data package that the company is contracted to use. No need to hire, train, and re-train any employees all thanks to cloud computing.
Therefore, how does FinTech benefit from Cloud Computing?
• New security features: Despite early concerns about security and data protection, the cloud has proved reasonably secure if the right measures are taken. For fintech providers, no doubt, security is at the forefront of their minds when adopting new technology, and they must ensure their systems have adequate measures in place.
• Data management: For fintech, data is key. Acquiring and working with data is a top priority, from onboarding and identity verification processes to account management, balance, checking, analyzing spending habits, etc. Companies can use cloud technology to gather and store large quantities of data securely and make it accessible at any time. With this, there's no need to wait for an IT specialist to come in to access vital information, providing an employee has the correct credentials. And this can be done from anywhere, and at any time; often automatically.
• Scalability and flexibility: Moving infrastructure to the cloud measures accessibility, flexibility, and scalability for both fintech and financial giants. Fintechs are dynamic and rapidly growing platforms. Cloud technology provides the agility to scale relatively easily while saving on on-premises technology infrastructure, which can be more costly to upgrade. Even for traditional banking institutions, using cloud platforms delivers the capacity to adapt to branch closures while still providing services to as many people as possible.
• Business Efficiency: Cloud computing is incredibly reliable for businesses. The companies providing these services have sophisticated systems for data storage and offer a much better and higher level of security than others. The data loss protection is also ensured and this helps data to be well secured.
In conclusion, businesses that integrate cloud technology into their services benefit from higher security, reliability, scalability, efficiency, access to much bigger infrastructure, and numerous other options. Therefore, no doubt, the world businesses today, are adopting cloud computing to stay competitive and enhance their business values.
Source: Forbes & ffnews.com