Cloud Computing Shaping The Future of Fintech

  • Assim Gupta
  • Mar 28, 2022
  • 8 Min Read
cloud computing in fintech

Article posted by

Assim Gupta

CEO

Assim Gupta is the CEO and Founder of Closeloop, a cutting-edge software development firm that brings bold ideas to life. Assim is a strategic thinker who always asks “WHY are we doing this?” before rolling up his sleeves and digging in. He is data-driven and highly analytical, yet his passion is working with teams to build unexpected, creative solutions that catapult companies forward.

Let’s Connect

Financial technologies are taking the business world by storm. The changing perception regarding traditional banking and lending demand for digital money transfers, payment processes, online lending, and online stock trading platforms in the last decade has seen a drastic shift. Innovative minds in the finance industry, which thrived on digital transformation, turned the industry into the next boom in technology—Fintech entrepreneurs are changing the culture with innovative ideas that ease the money-related problems of our daily lives.

Fintech startups embrace every form of technology like never before to create an efficient and effective financial system. Cloud technology is one of them, sending shockwaves to the fintech sector. Fintech cloud services providers are making the most of cloud computing. Cloud computing allows banks and Fintech businesses to innovate and enable them to reduce their operating and compliance costs. It improves the financial sector's competitiveness and efficiency, which benefits customers.

How Cloud Computing Revolutionizing Fintech Industry

Cloud computing is a trending technology running in the veins of fintech startups as the benefits solve many of the complex problems of financial requirements. Integrating technology into any traditional business itself is a competitive advantage, and cloud technology brings enormous advantages to the business world.

The Cloud comes with high security, speedy service, innovative processes, and never-ending scalability in the financial sector. Cloud has contributed 23.84 percent to the predicted compound annual growth rate.

Why does the fintech industry crave cloud tech, and what makes it the most appealing technology in the industry?

In the era of competition, most financial startups and big fat financial organizations are running towards integrating tech to offer more speed, 24*7 connectivity, data security, reliability, and flexibility to their customers.

Effective Data Management  - A cloud-based data management system allows modification in the data compared to traditional data systems. As fintech enterprises become more cloud-centric, it is essential to select the correct tools and processes as new financial activities arise, like crypto exchange platforms, crowdfunding, online banking, money-saving apps, etc. They perform various activities, from account management to verifying identities, displaying live trading, displaying bank or wallet balances, and analyzing spending habits.

Cloud computing enables organizations to store, manage, and access data at a considerable level facilitating high security, space flexibility, and cost-effectiveness autonomously, from anywhere, at any time.

Automated Analysis - Cloud system built-in with the feature of performing autonomous tasks preset by the organization's system such as automatic analysis of security parameters, testing of web applications, automated provisions for a data breach, and more. 

Disruptive technologies like blockchain, artificial intelligence, deep learning, and more will liberate financial players because the cloud can improve platform integrity through automated security processes and controls.

Cloud systems accelerate the automatic process to perform specialized tasks like banking, credit scoring, and fraud detection quickly and smoothly.

Business Continuity - Business continuity can only be successful when you have access to your crucial data all the time, not only in performing general tasks but also in emergency cases.

Fintech deals with very decisive activities like money lending, banking, payments, and trading, which needs foolproof recovery plans for contingencies of data loss to ensure that your business can continue even as it recovers from disaster safely.

Cloud computing in Fintech has benefited from the resilience the cloud offers and protects its critical capabilities. Moreover, the data saved in the cloud is encrypted to eliminate hacks and significant security threats.

Progressive Innovation - The fintech industry's innovation has been boosted by the agility that cloud computing technology brings to the table. Cloud computing in fintech enables financial institutions to develop and market products more quickly while also responding fast to shifting demands and emerging trends. The Covid-19 outbreak posed numerous hurdles for the fintech industry, and cloud computing has aided financial services organizations quickly and easily.

Proven Security features - Intense Integrated Security System is one of the reasons why fintech embraces cloud technology. Financial information is very crucial; security is an obvious thing to do as a priority. Therefore, because of the highly secure environment of cloud technology, fintech leaders can rest assured that their data is safe.

As per the Information Age report, approximately 42% of financial institutes don't have room for secure data, making it alarming. In traditional IT infrastructure, they can run the risk of cyberattacks to virus threats and emails; likewise, implementing cloud technologies can provide the same level of security like high resilience through its security infrastructure.

Moreover, Zero-Trust verification and encrypted data have improved the security quality of cloud technology. Adoption of new technology along with advancements will ensure fintech entities that their systems have adequate measures in place.

Reduced Operational Cost - Because of the reasons stated above, it is painfully evident how expensive operational expenditures might become. Cloud services are incredibly inexpensive compared to setting up and maintaining all the necessary infrastructures. No additional resources, time, or energy must be invested in resource management and data storage. As a result, using cloud computing in fintech can help organizations save money on system development and instead invest it in improving and upgrading its essential services.

Greater Scalability & Flexibility - Fintech companies identify the need for online secure financial transactions among people and have become one of the fastest-growing sectors in the tech industry. Therefore, they need the environment and infrastructure in favor of them to achieve the ultimate business goals without putting up unnecessary barriers or challenges to create hindrances in their passage of progress. The agility feature of cloud technology shakes hands with fintech to scale up the business quickly while saving costs for setting up on-premises infrastructure and its upgrading and maintenance costs.

You can see the level of flexibility the cloud platform provides to traditional banking structures by delivering the flexibility to adjust to branch closures while continuing to serve as many customers as feasible.

Serve Customers Faster and Build Strong Relationships - Cloud technology makes it convenient and easier to strategize the development and launch of innovative products and services, which is a bar in the financial industry that the industry has been reluctant to respond to changing client needs.

Banks may better understand their customers because of the cloud's mix of massive data and possibly infinite computing capacity than ever before. Finance firms who pass up this once-in-a-lifetime opportunity to create highly tailored systems to their customers' needs will pay the price by losing key demographics.

Cloud computing ensures that the service is always operational to its maximum potential, and the client receives far superior service overall. This means the corporation can concentrate on customer care on their end of the line and provide more incredible help to the consumers that require it.

Providing Relevant Customer Insights to Banks - The current banking business is more competitive than ever, with challenger banks and fintech specializing in specialized financial verticals giving traditional financial institutions a run. Customers had already become more demanding regarding the kind of financial service they expect. As a result, banks are up against unprecedented competition from conventional banks and the still-burgeoning alternative finance industry, including fintech and challenger banks. The exponential growth of data and cloud technologies to provide granular, deep, and rich customer insights are two essential elements driving this competition.

The pandemic raised the bar even higher. If banks fail to satisfy customer expectations, customers, particularly generation-Z and millennials, will seek out another financial service provider who will.

To meet this demand, banks need to expand their use of cloud-based, data-efficient services across their entire company. Proactive banks have already identified laborious and inefficient procedures within their operations and business models, which cloud technology can quickly improve.

Improve business efficiency - Changing the blueprint of existing tech architectures by incorporating the cloud will improve the efficiency of operations by streamlining them and leveraging functionalities for better performance.

If you're a large organization operating at multiple locations with numerous target demographics, you must optimize the business process to retain a high-efficiency level.

The critical function of cloud computing in fintech in improving operational efficiency is the potential to analyze and anticipate relevant customer insights based on market data. Financial services firms who use this strategy effectively obtain an advantage over their competitors by effortlessly navigating new market breakthroughs and advancements.

Best Practices for Selecting Fintech Cloud Service Providers

The specific requirements of banking and fintech are data documentation, keeping data in high-security walls, and sharing the information to make a quick shift for cloud adoption. It would be best to consider a few things related to technology before selecting a reliable service provider for the cloud transition.

  • Encryption and access control - Significantly ask about the policies and process of data encryption with your fintech cloud space provider to understand what technology infrastructure you need for it and how they can protect the crucial financial data you transmit.

  • Data segregation and management - Access to centralized data and sharing features allows organizations to shift to the cloud but due to security concerns, they are looking for data segregation and sharing resource benefits.

  • System failure recovery plan - Make sure that your service provider offers you a system integrated with backup plans in case of a system shutdown or any loss of information. It is essential to have a comprehensive disaster recovery plan and ensure your digital infrastructure supports it.

  • Compliance - The laws and regulations of cloud-delivered systems should be compatible with your business system. It would be good if you asked providers to provide detailed documentation of the required compliance certificates for the cloud services.

Conclusion

Tech-savvy financial organizations have realized the opportunity for agility in cloud technology and how they can help them capture the lion's share in their sector. Today, cloud computing spreads its reach to the fintech industry by developing and providing innovative products and services, establishing seamless interaction with clients, increasing revenue while partnering with inter-related organizations. So, understand the reach of the cloud.

The cost and efficiency differences between renting cloud services and having physical hardware that processes all of your data are enormous. Businesses that incorporate cloud technology into their services gain from increased security, reliability, scalability, efficiency, access to a much larger infrastructure, and a variety of other benefits as a result.

The fintech industry benefited from migrating existing system processes to the cloud by developing a more flexible and customer-centric model to generate profit and facilitate growth.

Latest Technology Insightstitle icon

Stay abreast of what’s trending in the world of software development with our well-researched and curated technology blogs.

How to Enhance Software Project Delivery with DevOps Consulting

Know How to Enhance Software Project Delivery with DevOps Consulting

Delivering a software project is a challenging task, and numerous organizations struggle to com…

oracle cloud vs AWS

Oracle Cloud vs AWS: Make a Wise Choice as per Your Business Needs

Enter the world of cloud computing and you're faced with a difficult decision: which platform i…

crm implementation plan

How to Revolutionize Client Service With a CRM Implementation Plan?

Are you ready to revolutionize your client service and take your business to greater heights? O…

Why Businesses Need Custom Software Development in 2023

Why the Market Demands Custom Software Development: Explained

You've heard the saying, "The customer is always right." But what does that mean for businesses…

Top Tech Trends Driving CRM Innovation

Keep Up With the Times: Top Tech Trends Driving CRM Innovation

CRM (Customer Relationship Management) innovation is a vital aspect of modern business as it he…

How to Do Software Project Estimation

How to Do Software Project Estimation: A Complete Guide

Looking to estimate the cost and time needed to complete your next software project? You're in …

Closeloop CEO interview with Goodfirms

Interview with GoodFirms: Creativity is Critical to Bringing Ideas to Life Says Assim Gupta, Closeloop's CEO

Closeloop Technologies believes creativity helps achieve maximum growth in digital transformati…

Closeloop Recognized as Top 1000 Global Service Providers 2022

Closeloop is Now Among the Top 1000 Global Service Providers in 2022

United States, Dec 12, 2022- Closeloop Technologies, a leading software development company, ha…

Mistakes to Avoid While Implementing NetSuite ERP

12 Mistakes to Avoid While Implementing NetSuite ERP

Netsuite is a globally recognized business operating platform out-turn the growing companies to…

AI in E-commerce and Retail Store Development

AI in eCommerce and Retail Store Development

You may have heard about the benefits of AI in eCommerce, but did you know that AI can also be …

What Do You Understand by QA and Software Testing

What Do You Understand by QA and Software Testing?

It would be best if you study how to perform quality assurance (QA), regardless of whether you …

what is the right time to develop a custom software

When Is the Best Time to Develop Custom Software?

Software is running the world. While this claim has been made numerous times before, the import…

Outsource UI/UX Creation

UI/UX Creation – One of The Most Important Development Parts You May Want to Outsource

Have you ever considered hiring a UI/UX design agency? If not, this blog will tell you all the …

agile methodology for software development

Adopting Agile Methodology will Drive Faster Results - Explore How?

Today, businesses are continuously looking for new methods to remain competitive in the face of…

 Augmented Reality to Help Businesses

8 Clever Ways Augmented Reality Can Help Your Business

In this tech-savvy world where everyone is keen to know the latest trends in technology, it is …

saas vs custom sooftware solution

SaaS vs Custom Software Solution - Which One Fits Right for Your Business?

In the year 2022, it will be almost impossible to successfully manage a business, either a smal…

How to Develop a Feature-Rich Fintech App

How to Develop a Feature-Rich Fintech App in 2022

Technological advancements significantly impact various business sectors, and financial technol…

guide-on-hiring-the-best-web-development-agency

How to Hire Web Development Agency - Step-by-Step Guide

Building a successful website from scratch requires a lot of labor and, at the very least, desi…

How to Implement DevOps for Enterprises

How to Implement DevOps for Enterprise - Everything You Need to Know

The perpetual switch from the following technologies makes the business environment much more c…

AWS training & certification exam

Elevate Your Cloud Computing Career with AWS Certification Exams - Details Inside

The Amazon Web Services Certification program helps professionals gain credibility and self-ass…

dating-app-development-solutions

The Estimated Cost of Developing an Ideal Dating App

When it comes to finding love, you don't need to go any further than your cell phone. In today'…

Netsuite-ERP-implementation

How Implementing Netsuite ERP Can Position You Strongly in Your Industry

You might think you have plenty of time to figure out the migration to NetSuite, but honestly, …

music streaming app development

A Thoughtful Guide on Music Streaming Apps- How to Create One, Features & Cost?

Music runs through the veins of most people, if not all. It is a significant part of our routin…

benefits to migrating your existing applications to the AWS cloud

Migration to Cloud Computing - AWS is the Best Choice

The world is progressing towards portable technologies, from mobile phones to remote work, to a…

How to Create User-Centric Enterprise UX Design

How to Create User-Centric Enterprise UX Design Effectively?

Technology is a wave: either sail the boat or sink out. The enterprises focused on automating b…

iot in electric vehicles charging stations

The Evolution of IoT in EV Charging Stations

The Internet of Things is another revolution in the technology world, leaving us wondering how …

Choose-react-native-for-mobile-app-development

Why to Choose React Native for Mobile App Development

With about 60% of the global population actively accessing the Internet, people need modern way…

website-redesign-cost

Combinations and Permutations of Calculating Website Redesigning Cost

Determining the successful user data interactions and conversations is significant in revamping…

Professor-Rana-Nayar-visit-to-closeloop

Professor Rana Nayar - A Visit to Closeloop Technologies

Professor Rana Nayar, a Ph.D. in English, a translator of poetry and short fiction from Punjabi…

netsuite for businesses to control and manage ERP

NetSuite for Small, Medium & Large Businesses - For Enhanced Effectiveness and Control

Enterprise Resource Planning (ERP) solutions are the lifeblood of a business organization. Nets…

 salesforce crm solutions for healthcare

Salesforce - Leading Player in the Game of Healthcare Management

In the healthcare sector, a cyclone of technology is impacting thousands of lives today. From A…

Custom ERP Software Development for Business Automation

Custom ERP Software Development - Ultimate Solution for Business Process Automation

In the dynamic world of business applications, one fixed solution for the constantly changing e…

cross platform app development using flutter

Flutter App Development - The Future of Modern-day Cross-platform Apps

While mobile devices were increasing significantly, the demand for mobile app development servi…

custom mobile app development process

Custom App Development Process - The Complete Guide

Whether big or small, businesses from different industries and start-up founders are taking cha…

cloud computing in logistics - benefits and limitations

Role of Cloud Computing in Logistics in 2023 - Benefits & Limitations

Cloud computing is one of the hottest technologies in this era of digital transformation that i…

mobile application development steps

6 Essential Steps You Must Follow to Develop a Feature-Rich Mobile App

We are living in a technology-driven world where almost everything is available at our fingerti…

Salesforce CRM Pros & Cons for Businesses

Is Salesforce CRM the Best Choice for Your Business? Pros & Cons

Customers are the most important part or lifeblood of a business. The way you onboard customers…

eCommerce store development With Shopify

Ultimate Guide to Build Profitable eCommerce Store With Shopify

To start an eCommerce business that becomes successful, the first step is to develop an enticin…

How to Start a Fintech Startup

Ultimate Guide on How to Start a Fintech Startup in 2022

Fintech or financial technology has become one of the most popular ideas for startups today. In…

Recruiting Software Development

Is Your Recruiting Software Ready for the Future of Work?

Recruiting software is a critical part of Human Resources Management (HRM). Basic functionality…

Top 5 Roles in Your Software Engineering Team

Are These 5 (Minimum) Roles On Your Engineering Team? They Should Be!

It can be very challenging and overwhelming to develop technology and software for a non-tech o…

Being Cheaper is Not a Competitive Advantage

Being Cheaper is Not a Competitive Advantage

As someone who attends dozens of startup pitches a month, “our product is cheaper” is a phrase …

Case Study: 6-Months in and Software Vendor Causes $160,000 Loss

Case Study: 6-Months in and Software Vendor Causes $160,000 Loss

PACEfunding’s Business Executive Is Shocked When The Vendor He Hired Fails To Deliver The Softw…

Control and Fear Aren't Your Company's Only Growth Problem

Control and Fear Aren't Your Company's Only Growth Problem

The Invisible Crushing Power of Software Why are companies afraid to partner with the vendors …

Software Bugs Risk $1.7 Trillion in Assets

Software Bugs Risk $1.7 Trillion in Assets

Painful Lawsuits: Huge Toll Taken on Executives at Uber, Equifax, St.Jude, and Provident Financ…

Startup Pitch Event, November 9th, 2017

Startup Pitch Event, November 9th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event, October 30th, 2017

Startup Pitch Event, October 30th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event, October 11TH, 2017

Startup Pitch Event, October 11TH, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event September 26th, 2017

Startup Pitch Event September 26th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

How Can MoviePass Be So Cheap?

How Can MoviePass Be So Cheap?

MoviePass caused major shifts in the movie industry when they lowered their monthly unlimited m…

User Experience is Key

User Experience is Key

There is nothing more tragic than a company with a great product that is hampered by poor user …

Investors Aren't Afraid of Smart Tech Outsourcing

Investors Aren't Afraid of Smart Tech Outsourcing

One of the most misunderstood fears entrepreneurs and startups have is that investors won’t inv…

Three Software Mistakes That Strangle Startups

Three Software Mistakes That Strangle Startups

I love meeting people who launch startups. Their energy and ambition inspire me. One of my life…