The future of FinTech and the cloud

The integration of FinTech continues to revolutionize the way businesses interact with consumers. What started as a viable solution to eliminate the need to carry physical currency has now become a multi-billion dollar industry.

Basically, FinTech is an umbrella term used to describe software, mobile applications and other integrated technologies that improve and automate traditional forms of financing for businesses and their consumers. The financial infrastructure-as-a-service (IaaS) focuses on enabling FinTech companies to rapidly facilitate highly secure transactions between an internal network while improving the user experience. The complex (yet effective) solution helps streamline tax transactions while eliminating unnecessary steps throughout the transaction process. Ultimately, to make financial transactions less expensive and more accessible.

The integration of FinTech continues to fuel unprecedented growth in business. The industry’s rapid growth can be attributed to a shift in consumer lifestyles towards more accessible and affordable solutions. As a result, FinTech has been able to assert a prominent role in business operations, but must remain vigilant in adapting infrastructure to meet ever-changing consumer and industry demands.

With this goal in mind, FinTech companies have started innovating new solutions that include embracing the cloud in their infrastructures. With new integration, companies will have to decide whether the use of fintech cloud computing devices will ultimately be an asset to achieve longevity and lucrative business growth or not.

FinTech meets the cloud

FinTech companies are quickly turning to the cloud to provide businesses and consumers with efficient solutions. According to a research study, 87% of businesses plan to accelerate cloud migration by 2025. So why is cloud computing becoming important for FinTech companies to integrate?

1. Agility: For companies to be able to compete, they must stay ahead of the competitive curve by reacting quickly to market changes. Cloud services satisfy this need by enabling companies to accelerate their scaling process. Companies can scale capacity up or down quickly to meet customer needs in real time. As a result, provides a more cost-effective solution.

2. Competitive advantage: Within the financial industry’s competitive landscape, it can be quite difficult for smaller companies to take significant market shares. Similarly, larger companies struggle to retain customers as internal, old IT practices hinder the speed of reaction to changing customer demands. The cloud gives both entities a better way to compete by offering a faster option to meet customer demands.

3. Improved customer experience: Millennials and Gen Z have transformed the banking industry by starting to see finance through the lens of technology. Cloud computing gives FinTech companies the ability to drive improved customer experience with consumer-centric web applications and improved performance metrics. Ultimately, provide the next generation of consumers with an accessible, flexible and much more manageable solution that follows their tech-savvy lifestyles.

4. Cost effective: Companies can incur significant infrastructure costs while developing and deploying FinTech products for a large customer base. Cloud adoption can help reduce costs by limiting usage, promoting elasticity of products and adhering to an all-inclusive price.

5. Enhanced security measures: With the ecosystem of hackers and cybercriminals continuing to evolve, companies must remain proactive in mitigating the potential risk of data breaches and cyberattacks. FinTech applications with weak security measures can compromise customer data and other private information. Consequently, it leaves the door open for exploitation by malicious operators. Hybrid cloud architecture provides a more secure framework by allowing companies to build their own solutions in the cloud infrastructure they own, rather than in a shared environment within a shared network. As a result, they can be proactive and help eliminate potential data security risks.

Limitations of FinTech: Enhancing Cloud Integration

Cloud computing integration continues to provide FinTech companies with the ability to accelerate business growth. While there are a number of FinTech companies that have managed to achieve great success while using these infrastructures, other companies have failed.

Any company that invests in FinTech (or other public cloud services) is exposed to potential downsides. It is important that companies begin to identify these potential challenges and actively try to avoid them.

Here are potential limitations to consider:

1. Refuse to use existing tools: Change is difficult to handle. Nevertheless, it is important that companies continue to embrace new technologies as they emerge. If FinTech companies refuse to build platforms using today’s technology, they risk an influx of user defections. On the contrary, if they decide to scale up, they risk hindering the agility of the entire company. By using existing and open source technology, companies can proactively fix their problems and promote infrastructure continuity by eliminating outdated data, obscure updates and massive inefficiencies.

2. Ignoring scope and capacity: Using FinTech technology requires an abundance of capacity planning to ensure that an efficient solution is created. Without planning, companies risk creating infrastructures that cannot accommodate the volume of metrics being used. This can result in killing dashboard performance and making debugging impossible. It is important to plan at all stages regardless of which suppliers are used.

3. The desire to implement more than necessary: Amidst a fast-paced and competitive industry, FinTech engineers are constantly implementing new innovations to strengthen their competitive edge. It is important that companies continue to innovate and improve their products; however, operations should not deviate too far from the original work area. Companies should work to eliminate unnecessary additions to their projects that can result in wasting a significant amount of time and resources. Keep simple tasks simple.

4. Plan and evaluate: Businesses need flexibility, independence and a cost structure to thrive. Achieving these grades requires companies to take the time to plan and evaluate each offering to determine which solution best meets their business needs. Although it may seem possible to change supplier, it can result in a more complicated and expensive solution. Setting long-term goals before deciding on a vendor can make the final move easier for your team.

The integration of FinTech and cloud computing services continues to impact the technology, financial and business sectors. The question of whether a FinTech cloud computing structure is a more viable solution in enterprises remains. By planning and evaluating each financial solution, companies can determine which FinTech service is most feasible to optimize business goals.

FinTech companies will always continue to offer safe and seamless solutions for their customers, but it is the companies that can capitalize on the efficiency that will rise to the top. As FinTech and cloud integration continue to revolutionize customer branding solutions, we will get closer to revealing the future of FinTech and the lasting impacts it has on society.