Cloud Technologies in Fintech

Posted on June 29th, 2022

Buzzwords like artificial intelligence, cloud computing, cryptocurrencies have been making rounds. Their individual roles in our lives have disrupted and changed traditional systems that everyone was well-accustomed. With the expeditious adoption of technology in every sphere of our lives, the digital makeover of the banking and financial sector became inevitable; and so the origination of fintech began.

Cloud computing has been an integral part of the digitalization wave that has changed the way people perceive technology.

What is Cloud Computing?

Cloud technologies enable users to access computing services like software, storage, programs and more over the internet, rather than on singular devices. This proposition essentially provides incredible agility to businesses and individuals, where they don’t need to obtain individual devices for all computing functions. This technology uses the ideology of buying-on-the-go, where customers can avail cloud benefits for various purposes as and when they require them, without adding any physical baggage. Cloud technology is particularly beneficial for large businesses, which aim to become leaner, bigger and more efficient.

There are various cloud computing technologies that cater to different niches and requirements. The most prevalent are:

SaaS (Software as a Service) – SaaS Cloud Computing enables users to install, use, update software without storing the software and its accessories on devices or hard drives. 

PaaS (Platform as a Service) – PaaS Cloud Computing offers developers easy-to-use platforms where they can create own applications and software without requiring external servers or specialized testing environments.

IaaS (Infrastructure as a Service) – With IaaS, companies can access firewalls, servers, storage, etc., without buying or creating the equipment. This technology offers ready-to-use online infrastructures than can be used for various purposes.

The Benefits of Cloud Computing

Cloud Computing has taken up the entire digitalized space by a storm. Nowadays, big companies and brands are heavily reliant on cloud technologies. There are countless benefits that cloud technologies bring to the table; some of them are:

Speed

With immense agility comes inordinate efficiency. Gaining access to data, programs, software as per need leaves minimal space for lags. Churning reports, updating information, buying more storage on-the-go are indispensable benefits that can amplify the agility and efficiency of companies and individuals.

Cost

The cost of capital investment in buying hardware, is substantially reduced when a company moves to cloud services. Cloud computing does not require companies to invest in purchasing equipment, separate software, hardware and even maintenance!

Productivity

The level of efficiency achieved from cloud computing is incredible. Cloud technologies provide instant access to data, making it an extremely viable option for the entire industry. Nowadays, it is imperative for companies to stay on the frontline of technological advancements, which is easily achievable when the company chooses to transport its base and system on clouds, rather than handling, maintaining and upgrading different equipment independently.

Scalability

The global scalability that businesses can accomplish through cloud technologies is remarkable. With easy and continuous access to software and data, combined with the option to upscale or downscale cloud purchases on-the-go, the scalability of the resources transcends into a different dimension. Companies can purchase accessories, tools and resources as per their requirements, and they can even downscale when need be.

Data Security

As all cloud purchases and data is readily accessible and available on the internet space, the data security on cloud technologies is immense. There is also an added layer of protection in cloud technologies as it is not only on the consumer company to protect data and information on the cloud it is also on the server company to provide the necessary protection. This additional layer of security makes the entire cloud space safer.

Data Recovery

Data recovery on cloud technologies is easy as the data is not dependent on a particular device or equipment. With agile technologies like clouds, redundant storages can mirror data on the network. These redundant sites provide continued access to the data as even if one server fails or malfunctions, some other redundant storage is automatically made available to provide uninterrupted access.

Cloud Computing in Fintech

The adoption of cloud technologies in fintech had a slow start. But the onset of the pandemic compelled an astronomical increase in the adoption of fintech by masses and, in turn, the adoption of cloud computing technologies by the fintech industry. Cloud technologies not only bring efficiency and agility into a company’s system, they also help provide automatic leverages of technological changes and upgradation that occur globally. 

Integrating cloud technologies with the fintech landscape was experiencing a bottleneck before Covid-19 entered the picture. While people discussed the possibilities of amalgamation, the pandemic brought the cloud and fintech coalescence into reality. Today, more than 50% fintech companies have adopted cloud computing technologies, and the number will only grow from here. 

The Future of Cloud Computing in Fintech

Fintech is an industry that stands on a dynamic frame. With swift changes in technologies taking place frequently, the scope of possibilities feels limitless. Cloud computing has become an integral part of fintech, and the main areas where it is being widely used are:

Data Management

Cloud computing makes scalability and agility obvious adjuncts to business systems. When companies managing vast amounts of data gain easy and consistent access to different programs, software and storage limits, data management becomes a much easier and joyful experience. With direct control over information, companies can use it to its advantage and even offer products based on it. 

Customer Services

Agile and fast turnovers have a huge contribution in enhancing customer services. With secure and fast data systems, institutions employing cloud technologies can guarantee better and quicker results and services, which would positively affect the service quality.

Efficiencies

With scalable and quick options readily available, business efficiencies multiply. Business can take better control of their actions and decisions. Not only does cloud computing save time, it also reduces the overall investment that a company would have to put in otherwise. By cutting down both cost and time, cloud computing can become the real asset for businesses.

Closing Thoughts

Cloud computing turned up at the right junction, just when the fintech world was about to take off. With the help of cloud technologies, the fintech landscape has witnessed tremendous changes, most of which have been problem-solving in nature. With cloud technologies, companies can set up exceptionally agile and efficient systems while saving on costs and money. Such positive propositions suggest an indispensable position of cloud computing, where the reliance of fintech companies on cloud servers is only going to grow.

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