Fintech is a thriving sector, boasting more unicorns than any other. But what is it that enables these innovative and disruptive startups to gain such traction in the market? One technology certainly playing a valuable role is the cloud and here we examine the benefits that the cloud brings and how it can shape the future of fintech.
An affordable way to launch
Developing a fintech product that can be deployed by numerous financial institutions and potentially by millions of their customers can require significant investment in infrastructure – something that most fintech startups lack. One of the biggest attractions of the cloud is that all the infrastructure needed is provided by the vendor for a manageable monthly fee rather than heavy capital investment. Indeed, beyond supplying the hardware and networking, the cloud vendor will also manage the infrastructure, keep it secure using advanced firewalls and other tools, and provide 24/7 technical support – all included in the price.
Enabling swift growth
Fintech companies can find their businesses experiencing swift and unpredicted growth. While this seems like a good thing to happen, some firms are not prepared for it. As a result, their systems are unable to cope with demand and their carefully nurtured reputations are tarnished. Regaining customer and investor trust can be an uphill struggle thereafter.
The importance of the cloud is that it offers fintech businesses unparalleled, on-demand scalability, ensuring they have an infrastructure that can grow at the same pace as the business, no matter how quickly. What’s more, with pay as you go pricing, companies are not spending money when it’s not needed.
Delivering modern banking
Many of the fintech products being developed offer customers remote, self-service technology. As consumers become increasingly digitised and banks close high street branches, there is an increasing demand for these technologies. For remote use, of course, customers need to be able to access them over the internet. And with a growing number of businesses offering remote working, employees also need to access these tools away from the office. The only practical solution for delivering these technologies is the cloud.
Delivering on security
As they deal with sensitive data, security and compliance are key priorities for fintech companies. Just like financial institutions, cloud vendors, too, have to comply with strict regulations and deploy robust measures to protect their customers’ data and systems from hacking, infection and internal data theft. These measures include next-gen firewalls, intrusion detection and prevention, in-flow virus protection and encryption, all of which can be further reinforced with zero-trust verification and the use of VPNs. Additionally, the deployment of single tenancy private clouds can ensure compliance for those companies dealing with the most sensitive of personal data.
Do more with data
The cloud isideally suited for companies that rely on data. It allows silos to be dismantled and data to be centralised, merged and augmented; it can be securely managed using logical access control; tools like analytics, AI and machine learning can be swiftly deployed to deliver important insights, and teams can access data, together with the latest versions of synced files and documents, whenever needed and from wherever they are based.
Agility and innovation
The finance market is constantly changing and successful firms need to be able to react to movements quickly and bring new products to market at pace. The cloud empowers fintech companies to be more agile and innovative. Advanced tools and cloud-based applications can be deployed in minutes, enabling new products to be developed and brought to market with increased speed.
A future-proof solution
The great thing about cloud technology is that it is primed for the future. Most applications now being developed are open source and cloud-based, enabling fintech firms to access them cost-free, deploy them instantly and modify them for their own use. The competition between cloud vendors also ensures that there is continual investment in the technology they deploy. Hardware, for example, is constantly upgraded to deliver greater performance, while services like security, disaster recovery, business continuity and bespoke technical support are always being enhanced. When it comes to resources, of course, the vast data centres of cloud vendors ensure that fintech businesses always have the storage, CPU, RAM and bandwidth they need to deliver their services and the assurance that these will remain available 100% of the time.
Fintech has become one of the most innovative and successful sectors over the last decade, delivering vital services to the finance sector and its customers. It is an industry that relies heavily on its infrastructure, requires rock-solid security, and which needs the agility to adapt to change and deliver new products quickly. The most effective and efficient solution for delivering those needs is to partner with a trusted and highly experienced cloud provider like Hyperslice.
For more information, visit Hyperslice.com.