Cloud computing is the new best thing that has become more and more prevalent in modern society during the last couple of years. It is a service where the provider basically rents out computer system resources. This can be anything starting from data storage (cloud storage like Google Drive, OneDrive, etc.), or computer power like different server side operations, for example, the newest addition – Cloud gaming from Nvidia GeForce as well as PlayStation GO. This is basically a set of computers that you can rent digitally that will make all the processing for you.
Thus we step into financial technologies or FinTech. Here cloud computing has been the main driver towards efficiency and cost-effectiveness. Due to this, banking and financial sectors have happily adopted cloud computing and started optimizing their process of payments and transactions.
Information technology has evolved quite a lot during the last couple of decades. With better IT infrastructure all across the world, it is becoming possible to utilize high-speed internet to optimize the financial processes. Cloud services are everywhere now starting from servers, storage, databases, networking, and other software solutions just over the internet without the need to buy expensive hardware as well as set it up and then manage it through your own means.
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 due to the fact that it only takes upgrading the data package that the company is contracted to use. No need to hire, train, and re-train any employees.
Cloud computing drives the cost of such services to a fraction of what it would have been otherwise. Data from Forexbrokerslist.org shows that lots of different brokers as well as exchanges are renting out these services from other companies that take care of most of the concerns that otherwise, they would have to deal with. This allows FinTech companies to narrow their vision and focus on the main mission that the company has. This includes operational and compliance costs. Not only does this make the financial sector more competitive and efficient but benefits the customers as well as they get faster and more effective financial services.
Cloud Computing and FinTech
Cloud technology has evolved the banking and finance sector into much more flexible and agile business models that are focusing on their growth. There are a number of ways FinTech is utilizing cloud technology to accelerate the process of innovation in banking. This is embodied in benefits like data management opportunities, reduced operational cost, automated analysis systems, customer service, business continuity, scalability, and overall improvements to business efficiency.
The impact of cloud computing is the most visible when it comes to data management systems. These services are extremely expensive and outsourcing them to a third-party company is one of the happiest decisions that financial institutions make. Cloud computing lets them reduce the cost of buying, setting up, maintaining, and upgrading IT infrastructure for their servers. These can be manifested into anything starting from actual hardware that the company needs to own then the room where it needs to be located since it has to be cooled well. Apart from this, the interested party requires trained employees to set up and then maintain already existing systems. The cost also increases every time the company starts expanding their services. Basically, unless there is a necessary amount of servers and the software isn’t good enough to handle huge workloads the financial institution as well as its customers will experience delays in their services.
Cloud technology allows Fintech companies to store and manage user data in a much more secured and trusted way than otherwise, it would’ve been possible. This is a great thing considering the cybersecurity aspects of the server side data as well as the responsibility of keeping the software up to date and secure is all on the company providing the service.
For the reasons that we discussed up above, it is painfully obvious just how expensive the operational costs can get. Cloud services are extremely cheap in comparison to what it would cost to set up and operate all the necessary infrastructure. Thus, adopting cloud computing allows the company to save money on the development of said systems and invest them otherwise into making and upgrading their actual services. This also means that there is no additional investment, as well as time and energy, has to be put into the management of resources and stashing the data.
When it comes to advanced automated services like Artificial Intelligence (AI) development, Machine Learning (ML), and data analysis that is being actively used during fraud detection, processing banking services, and tasks credit scoring require huge computing powers. These processes can now be smoothly and effectively managed using cloud computing. Processing power that can just be rented makes it possible to accelerate and enhance the capabilities of the financial industry.
Fintech organizations that use cloud computing services from large companies working in the field do get the benefit of better customer satisfaction. This means that the service is always working to the full extent and thus the client is getting much better service overall. This means that the company can focus on customer service which is on their side of the working line and give better support to the needed users. Apart from this, the technical support that the cloud computing companies provide for their premium partners is also top-notch making troubleshooting and fixing any kind of inconvenience a much easier task.
As we have already mentioned 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.
Operational capabilities of cloud computing companies far exceed that of an individual small to middle-sized business or sometimes even the large one if the company doesn’t specialize in the technology sphere. Thus, business efficiency is also improved in most of the cases.
In conclusion, there are huge benefits to cloud computing when it comes to FinTech companies. It is obvious that a lot of services can just be outsourced while the firm dedicates its resources and time to upgrading and providing better and more inclusive service. The efficiency as well as the price difference between renting cloud services and having actual hardware that is processing all your data is immense. Due to this, businesses that integrate cloud technology into their services benefit from higher security, reliability, scalability, efficiency, access to much bigger infrastructure, and numerous other options.