Technologies
The 2020s are the beginning of the cloud era. Study by IDG Consulting showed that 81% of companies have at least one cloud application and more than 55% of companies use multiple clouds. Companies invest 32% of budgets in cloud technologies. The cloud offers companies flexibility, speed and accessibility. But what do these advantages mean for fintech? Learn all about cloud computing technologies in this article.
The advantages of cloud computing technologies for fintech
At the end of 2025, the financial technology market is expected to grow from 23.84% to $124.3 billion, taking into account the annual growth rate. In addition to AI, chatbots, blockchain and RPA, cloud computing is one of the five most important technologies.
Companies can better manage their data
Financial institutions collect huge amounts of data. With the cloud, you can collect information in a central storage, which facilitates data analysis. This gives companies a clear understanding of their situation on the market. This makes it easier to track customer information and assess and predict risks.
With the traditional infrastructure, you have computers that are connected to local servers. However, the storage capacity of such servers is limited. When the storage is full, you have to install additional hardware, and this will be expensive. As data volume grows, the cloud infrastructure also expands. You don’t need to buy new computers. All you have to do is expand the service package of the cloud provider. Follow https://evnedev.com/industry/fintech/fintech-software-development-company/ for more.
Financial institutions have it easier to be innovative
The cloud brings flexibility and scalability that is necessary for the digital transformation of the company. In order to be competitive, companies must develop and introduce new products faster. Thus, one does not want to waste time maintaining the infrastructure. The cloud providers take over this work while companies take care of their business processes.
Cloud technologies have promoted the development and importance of DevOps. Financial institutions are not interested in how this continuous application integration and deployment works. But this cloud practice increases the performance of development by four times, accelerates application updates by 25% and saves time and money through automation. But what do these figures mean for financial companies? You get new software faster and cheaper, as well as automatic updating in the cloud. In short, cloud computing gives you a competitive advantage.
Financial companies can save in cloud
Cloud computing technologies save money:
- Organizations do not need to upgrade local servers and pay for maintenance personnel and power consumption, but use these resources for new business ideas.
- Development and deployment of new applications takes less time and money.
- Companies pay cloud providers for the capacity used according to the pay-as-you-go principle, which means that they only pay active server hours.
Financial companies must regularly submit reports to the supervisory authorities and comply with applicable laws. The rules change from time to time, but companies need to collect, store and process detailed data. The GDPR is just one of several laws that companies must comply with. How can the cloud help with this?
The cloud offers monitoring functions and reports on changes to settings and interventions in the security logs. In addition, the cloud offers tools for automating reporting. Many security solutions are already integrated into the cloud: firewall, digital key management, multi-factor authentication and others.
Fintech companies improve the user experience
With the cloud, banks digitize their interaction with customers. Fast real-time payments, digital wallets, payment systems and P2P payment applications are used for this purpose.
Transactions go faster, which can be seen in the work of the SWIFT payment network. It is based in the cloud and provides services for 11000 financial institutions in more than 200 countries.
