Benefits of Cloud Computing
Cloud computing is an integral augmentation in fintech and the overall digital world. Cloud computing takes digitalization to new efficiency levels where users are not restricted to physical devices and equipment to operate and use data. People can access, retrieve, and edit data using digital platforms from any corner of the planet. This technology has proven beneficial across different industries, products, and media.
Cloud Computing in Fintech
The fintech industry has witnessed a tremendous adoption rate of cloud technologies owing to its many benefits. In the past few years, almost 22% of fintech applications have employed cloud computing, suggesting a steady growth rate of cloud technologies in this industry.
The growth of the fintech industry is estimated to cross $120 billion by 2025, implying a tremendous scope for developments, innovations, and disruptions, making the plausibility of increased adoption of cloud technologies higher.
By employing cloud technologies, the transfer of data, APIs, and collaboration between third parties and financial institutions becomes simpler and more effective. It also opens many doors for new startups to develop and provide better cloud computing services.
Cloud Technology Services
Cloud computing has benefitted the digital world by providing services that make the entire system more efficient, cost-effective, and suit users’ needs. The three primary service categories in cloud technologies are IaaS, PaaS, and SaaS.
Infrastructure-as-a-Service (Iaas)
IaaS services revolve around servers, storage, network firewalls, and other resources that can be availed by the consumer on a pay-as-you-go basis. When a company transitions from physical to virtual using IaaS, it can save on the investment and upkeep cost of the equipment, hardware, etc.
Platform-as-a-Service (PaaS)
This particular type of cloud technology offers virtual platforms for testing and managing software. It is particularly useful for developers who use PaaS services to test mobile applications, websites, etc. When availing of PaaS services, the developers can completely evade setting up and managing the infrastructure for storage and servers.
Software-as-a-Service (Saas)
SaaS involves cloud services that enable the delivery of software applications without the users investing in the infrastructure and managing the applications. All the underlying requirements for delivering software, are handled by the cloud providers.
The Benefits of Cloud Computing
Cloud computing has become an integral part of the fintech industry because of its practicality and usability in handling large volumes of data. It provides the perfect structure that welcomes and empowers digitalization.
Flexibility
As fintech firms are continuously evolving and changing, their requirements for dynamic infrastructures are becoming more dominant. With infrastructures, servers, firewalls, etc., becoming more agile and virtual, the flexibility for fintech firms increases, where they can change patterns, disrupt monotony, and become more empowered.
Data Security
Cloud technologies allow the handling of big datasets and databases on their offered platforms that enhances data security. Network firewalls are one of the main USPs of cloud computing, which secures the data by providing various levels of protection, making it easier and more efficient to manage data for fintech firms.
Scalability
Cloud technologies come with the added advantage of providing pay-as-you-go services. A firm can pay for the services it has availed instead of paying for particular packages offered by cloud providers. This way, the firm’s scalability remains empowered, where it can choose to add on or remove services as per its requirements.
Lower Investments
As cloud computing offers software, platforms, and infrastructure in virtual environments, the investment for firms becomes considerably low. With greater flexibility and scalability, firms can upgrade or downgrade services that they have availed to suit their requirements without particularly investing in purchasing and maintaining physical servers.
Collaborations
With cloud technologies making it possible for fintech firms to manage tremendous volumes of data virtually, it also opens doors for simple and faster collaborations between third parties and banks. Financial institutions can easily supply their data to third parties that provide fintech services, making the entire space of fintech collaborations much more efficient.
Data Recovery
Cloud technologies must have a security system in place that takes care of data recovery and data management. Providing digital infrastructure is not enough if it does not include a data recovery plan that can recover all the stored data and resolve technological glitches.
Apart from these prominent benefits that are offered by cloud computing technologies, there are many more advantages that users have experienced, like easier data management and access, a wide scope for innovation, advanced customer services, etc.
Closing Thoughts
Cloud computing technologies have witnessed tremendous success owing to the benefits they offer. By taking advantage of the virtual space and services, it becomes substantially easier and more efficient for businesses to manage their activities, data, and customers.
With cloud computing becoming a dominant niche in fintech, big companies like IBM, Microsoft, and Goldman Sachs have also joined the battalion of cloud computing providers. As artificial intelligence, big data, machine learning, and the crypto industry take over the fintech space, the future of cloud computing only becomes brighter than before.
