Over the past couple of years, modern society has witnessed the increasing prevalence and adoption of Cloud computing by enterprises across sectors. For the Padawans out there who think of the Cloud as a network of nano-bots ready to overtake humanity, Cloud computing is basically just a set of computers that can be rented out digitally for enterprises to utilize their computational resources. These resources could be anything from storage space, e.g., Google Drive, One Drive, etc., or computer power and RAM resources for server-side operations, my favorite example being PlayStation GO.
But where does the Fintech connection arise? In an industry (read: Fintech) that relies so heavily on calculations and analysis, Cloud computing is a critical driver of cost-efficiencies and effectiveness. The banking and financial sectors are now increasingly opting for Cloud computing to optimize their payment and transaction processes.
With the rapid evolution of information technology over the last couple of decades, our world now has a robust IT infrastructure that spans all countries and continents, making it possible to leverage high-speed internet to facilitate and optimize financial processes. From networking to storage, servers, and databases, Cloud computing has eliminated the need for enterprises to buy expensive hardware and then spend even more managing it.
Characteristics of Cloud computing like interoperability, secure storage,24*7 uptime, and friction-less scalability have proven extremely advantageous to banks and financial institutions. Fintech companies can now narrow their line of sight and focus on their mission of delivering competitive and efficient financial services faster and more securely to their customers.
Five reasons why Cloud Computing and Fintech are a perfect match
With the advent of Cloud technology, the finance and banking sector can now shift to increasingly agile and flexible business models focused on sustainable growth through enhanced service efficiencies. Fintech utilizes Cloud technology in several ways, like reduced operational costs to automated analysis and better data management. Join me as I touch upon the five reasons why Cloud computing and Fintech are a perfect match.
1. Efficient data management
Data management systems display a significant positive impact when powered by Cloud computing service administrations. Supporting in-house/traditional Data management capabilities can be very expensive. By outsourcing these services to a Cloud computing partner, Fintech companies can enjoy reduced costs in purchasing, installing, maintaining, and upgrading the required IT infrastructure for their on-premise servers. In addition to the hardware and the support infrastructure that goes with it, the institution will be faced with the temporal and financial resource-intensive process of hiring trained professionals to operate and maintain their hardware. Every time the company expands its services, the cost of maintaining IT resources also increases.
Cloud technology offers Fintech institutions to store and manage their data in more effective and secure ways as compared to the traditional route of owning every resource required. Even while examining the cyber-security aspects of the company’s data, Cloud service providers are the safer option given the rigid protocols they implement and the measures they take to remain secure.
2. Reduced Operational Costs
Operational costs can inflate significantly for a company that is on the path of expansion, and a large chunk of the revenue the company earns will go into setting up and operating its IT infrastructure.
By adopting Cloud computing, the company can save money by not directing towards the development of traditional systems and instead shifting their investments towards the creation and up-gradation of their core services.
3. Enhanced Automation
The Fintech industry has high-criticality processes related to Artificial Intelligence deployments, Machine learning, and data analysis at microscopic levels. The deployment of these technologies facilitates fraud detection, credit scoring, and even day-to-day banking processes. Each of these tasks requires massive compute power, the kind that would cost a fortune to own. Cloud computing allows Fintech companies to access cutting-edge tech resources to smoothly and effectively manage the tasks mentioned above.
Cloud automation‘s offering of rented processing power helps Fintech organizations to mobilize and augment the latest in automation capabilities and service offerings without actually having to pay a bomb for them.
4. Better Service
The Cloud Computing services available today enable adoptive Fintech companies to access service offerings that were earlier available only to the top-of-the-crop. This means that a customer in a tier two city can enjoy the same level of service efficiency and customer satisfaction as compared with the Fintech software solutions available in a first-world environment.
Better service means happier customers, and happier customers mean enhanced revenue. So not only does Cloud Computing offer the very best services, but it also frees up time for strategists to devise action plans aimed at better customer experiences and support.
An ideal Cloud computing partner will also provide top-notch technical support to efficiently handle, troubleshoot, and fix issues.
5. Augmented Business Efficiency
The reliability offered by Cloud computing for businesses is unprecedented. Cloud computing service providers have highly sophisticated systems for all enterprise functions. One example is data storage, where Fintech companies can now enjoy superior security levels and minimize data loss.
The operational capacities of a Cloud computing service provider greatly exceed the purchasing capabilities of small to mid-size enterprises. At a nominal fee, they provide them with access to service and compute resources comparable to the biggest names in the Fintech sphere, offering augmented business efficiencies.
Drawing context from what we have touched upon above, it is safe to say that Cloud technology and Cloud application development have facilitated the advancement and the evolution of Fintech business models by enabling better services at a reduced cost. Cloud tech has also enabled companies to boost workflow speeds while making the increasingly secure and customer-centric.
In summation, there are massive benefits of Cloud computing as far as Fintech companies are concerned. Cloud computing enables effective and efficient outsourcing of peripheral processes to allow the firm to focus on providing an inclusive, efficient service to its customers.
In terms of efficiency and cost, opting for Cloud computing scores over owning, operating, and maintaining hardware. With Cloud computing, the Fintech industry can enjoy enhanced security, flexibility, efficiency, and access to world-class infrastructure, propelling them ahead of the competition and making Cloud computing and Fintech a match made in heaven.