Migrating to cloud is always a viable option for Fintech’s that is helping create a customer centric revenue model.
Since the outbreak of pandemic there has been a significant rise in cloud adoption as more organisations embrace it for a very simple reason it makes data accessible from anywhere with an internet connection.
So, a growing number of organizations are embracing cloud to cut downs on capital expenses and save time, thereby optimizing business performance. There are countless benefits inspiring organisations across verticals to adopt cloud and financial companies are leading from the front.
As survey from Gartner says that global spending on cloud services is expected to reach over $482 billion in 2022, up from $313 billion in 2020.
It’s clear how Fintech’s are benefiting from adopting and migrating to cloud-based technologies that has huge potential to change ways of working prevalent for many years be it the core services or operational functions .
Cloud brings in agility and competitiveness for Fintech
Fintech’s and financial institutions are squarely focused on agility to prepare for a competitive future more during the pandemic. From creating cloud-based platforms, apps, and business processes to creating new doors for the finance industry, there’s a lot happening in this space. It includes developing and providing outstanding products and services.
Using the cloud infrastructure and platforms, Fintech’s are better positioned to provide customers and end users with more speed, to scale with relative ease. As cloud- based solutions becoming the only enabler with ‘one click’, which can be accessed via a smartphones thereby allowing Fintech’s with seamless access for a high- level performance on their servers and data storage, it is an obvious choice.
Since cloud offers agility, Fintech’s are able to fastening their product development, adopt to newer market trends and change their strategy whenever needed. In future we will see an upward trend with Fintech’s harnessing the best form of cloud computing to the best of their advantage
Transformation with Cloud
Fintech’s work with huge amount of financial data that requires data management. Having connected sets that provide them access to data and insights allowing better decision making with cloud technology. Without making many changes in their existing framework Fintech’s are focusing on the hybrid cloud approach so that new offering and services for customers gain coherence.
Cloud became a boon for Fintech helping them with cost cutting a crucial point affecting their major decision making processes, revenue and profitability unlike earlier when cloud was not in place to move infrastructure, giving less opportunity to fulfil customer and stakeholder demands.
With cloud Fintech’s can focus more on innovation and increase their productivity with timely delivery. For example even on a bank holiday, using cloud platforms customers can be served efficiently.
Data protection is still one of the important areas for Fintech as they deal with massive amount of data in their day to day working and securing this data is their foremost challenge.
Moving data to cloud and storing it in various cloud storage environments may result in lack of visibility as to who is getting access to their data. Different cloud providers have different capabilities when it comes to data protection and that is a challenge for Fintech’s. Zero-trust verification and encrypted data have increased cloud security in recent years.70% of cyber securities professional are concerned for data protection. This also gives us a glimpse of the data protection market which is projected to surpass US$158 billion by 2024.
We can say that for Fintech, a well thorough cloud strategy will determine how they want to deploy cloud within their organisation and choose the deployment model that’s right for their business.
Once the deployment model is set that fits best for organizational needs, it’s time to choose how to manage each services. The last is to select and prioritize cloud initiatives based on requirement and setting apart critical business activities that will get priority and make them competitive in market.
(Sources of Information: Gartner Says Four Trends Are Shaping the Future of Public Cloud)
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