When it comes to the cloud and cloud-based services, these trendy buzzwords aren’t referring to that ominous cumulonimbus hanging over the city threating to rain out your BBQ. The cloud is deeply entrenched in the way you use the Internet. Its massive infrastructure affects how individuals and companies transfer, store, and process data.
While it has applications in a variety of products, services, and industries, its greatest impact is in the world of FinTech companies. Cloud technology gives these relatively small companies considerable storage space and computing power that rivals that of the largest financial institutions. With the help of the cloud, FinTech is emerging as a powerful alternative to the traditional banking model.
The cloud offers power at an affordable price point
As regulations change, cloud technology has emerged as the backbone of most financial services—not just FinTech. However, what makes the cloud such an indispensable tool for the largest retail banks has also levelled the playing field for its smallest competitors. Previously priced-out of the game by expensive legacy IT systems, FinTech startups can now compete with these gigantic financial institutions with fewer financial risks. Cloud-based storage and services require very little upfront investment, making its immense storage capabilities and processing powers affordable for even the smallest outfit.
When leveraged properly, the cloud can also help these startups gain a competitive edge with the following features:
Scalable and flexible services
Consumers expect quick, responsive services that match their needs as they evolve. The cloud gives FinTech the tools they need to adapt to customer needs, market conditions, and regulations as they change.
Efficient and convenient services
Regardless of its application, the cloud streamlines services. It makes it easier to integrate new products, services, and users into an existing tech infrastructure than the previous system. In terms of FinTech, this makes it possible for companies like MoneyKey to flush out complexity from its services. They’ve created a seamless borrowing experience compared to traditional models thanks to the convenience of cloud computing processing applications and payments for their online loans.
Easy, fast-acting services
The strength of the cloud’s processing power gives FinTech the ability to make nimble, customized financial services for their customers. It also democratizes access to data. IT workers aren’t tied to specific hardware to fix bugs, so they can react to problems and deploy new products and/or services faster than before. This, combined with how easy customers can access their personal data online, increases customer satisfaction.
Customer satisfaction is a driving force within the financial industry, and it largely hinges on uncomplicated, instant access to their banking information over any connected device. Affordable, adaptable, efficient, and easy—the cloud is giving FinTech startups the tools they need to give their digital customers this unrestricted access. While traditional financial services can leverage the cloud in many of the same ways, these slow-moving entities can have trouble executing large-scale transformations at the same speed as the smaller FinTech enterprise. As a result, the cloud is an essential service for FinTech if they expect to challenge traditional banks for a spot in the financial world.