How cloud technology is shaping the future of the fintech industry

Even as businesses around the world battled the pandemic, digital technologies in many ways experienced an exponential rate of adoption, with cloud technology proving to be a crucial enabler. Cloud technology has helped organizations facilitate a data-first and technology-first work culture.

Fintech is a sunrise industry booming with more unicorns than any other. With large amounts of data that need to be stored, analyzed and managed securely, it has become relevant for Fintech to use cloud technology and is fully in line with the ethos of the Fintech DNA of speed, scalability, agility along with responsibility for sensitives. information storage.

Tech vs. Fintech

Financial Services have increased expectations from technology to understand the domain deeply and have a considered 360-degree view of the expectations of customers, businesses, regulators and market infrastructure institutions.

The technology in Financial Services is like the driver who not only maneuvers the steering wheel and presses the gas pedal, but one who is also aware of the passengers’ expectations of destination, speed, safety, reliability, dynamics of other traffic vehicles and the requirements of non-negotiable rules and regulations.

The following specifically translates to technology in financial services being:

• Domain solutions and Time to Market: Well adapted core functionality since all new products and offers are conceived as Tech First solutions. Gone are the days of the manual to automation development journey in financial services.
• Expected availability 24×7 with almost zero downtime (as a utility or first responder service)
• Speed ​​– Nanosecond response time
• Flexibility to the extent that any given day can be a “Boxing Day” stress test for the technology infrastructure in a grocery parlance
• Security and compliance expectations no less than those of a defense network

Cloud Technologies has been able to act as a one-stop solution to meet the requirements of Fintech today. Therefore, Fintech now fully operates as a ‘Cloud First’ sector, thanks to the development and maturity of Cloud Technologies with a fascinating track record and validation of delivering scale, availability, reliability, agility, security and favorable economics.

Cloud technology providers – an oligopoly market

Interestingly, the cloud technology providers’ market may well qualify as an oligopoly market. When it comes to Cloud Computing as an infrastructure solution, it has matured into a fairly commoditized market with standard lowest common denominator expectations of scalability, security, agility, etc. Therefore, the decision making for a buyer/consumer of the Cloud Technological offering has graduated. to the expectation of having a Business Operations Partner role per 3 key qualified:

1. Is the cloud provider willing to play the role of an all-weather partner in the Fintech journey both in terms of scale and depth, which is agnostic to the stage of the company – nimble, sticky by virtue of value and not lock-ins, flexible and transparent cost structure/invoicing and meaningful advice and recommendations?

2. Can the Cloud Service provider offer value-added Financial Services domain-oriented solutions non-core, near-core functional solutions, e.g. help in FS domain focused AI/ML solutions, data lake, open stack interoperable offering

3. Alignment to Business Roadmap i.e. Ability to enable expansion plans, jurisdictions, portability, meet regulatory needs, relevant cloud marketplace offerings

Collaboration between the cloud and the fintech industry

The outlook for Cloud and Fintech collaboration is very optimistic and reassuring. In the next decade, Cloud Computing together with the marketplace solutions will function as a Direct to Business offer. Collaboration and cross-pollination of ideas, knowledge and talent should see- Deeper domain-oriented solutions that address – business, product and regulatory needs, exponential development in computing power with a lower ratio of consumption to cost and faster time to market – Next- Gen Fintech DevOps and the maturity of a low-tech/no-tech self-help Directly to the business model.

Future expectations

Going forward, the focus will certainly be on deeper FS domain focused cloud marketplace solutions and offerings with relevance to specific jurisdiction/market requirements, better commitment to portability of business accounts and even cloud marketplace solutions from ecosystem partners across cloud infrastructure providers, and a scale agnostic approach while entering into business partnerships with Fintechs, poly cloud technology makes stacking the reality for even not so big Fintechs and finally cements the journey towards a carbon negative cloud technology ecosystem.

With a rapidly evolving industry, Cloud Technology in India has penetrated the fintech industry and is here to stay. It has become one of the most efficient and innovative sectors over the past decade, providing innovative services to the fintech industry, ultimately driving the Industrial Revolution 4.0.

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