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FinTech Trends That Transformed The Industry in 2021 (Data and Cloud)

Digitalization has swept through the entire FinTech industry, and that has only been accelerated in the midst of the ongoing pandemic. This has sparked a series of new fintech trends, which we have been observing throughout 2021. Most of which are based around AI, Blockchain, the cloud, and data.

In our previous episode, we covered AI and Blockchain, and today we are diving into the biggest trends we observed in the cloud and data space.

Leveraging Cloud To Boost Scalability

The cloud has been undeniably a trending topic throughout 2021 as more and more institutions have been shifting from on-premises legacy solut ions to full cloud and hybrid infrastructures. Both for their innovative and mission-critical products and services.

Now historically speaking, scaling up took companies up to ten years due to limited legacy systems, but today, the cloud is an enabler of scalability at a low cost. Enfuce resembles a great example as their cloud-based solution is facilitating the rapid expansion of their clients’ businesses. 

But it is not just FinTechs and banks who are leveraging the benefits of the cloud, in fact, cloud computation is playing a vital role in the transition to eco-smart public transportation and MaaS, thanks to secure and flexible cloud data centers.

Global cloud revenue is forecasted to grow by 16% in 2022.

Experts also said that more than 85% of organizations will embrace a cloud-first principle by 2025, and will not be able to fully execute their digital strategies without the use of cloud-native technologies.

The Evolving Uses of Data

This brings us to the last area we will be covering in today’s video; Data, which is strongly tied to the Cloud and AI, yet deserves to be recognized as its own area. 

From behind the scenes, data is what powers payments as consumer services and security protocols are created through consumer data. Banks and fintechs alike are leveraging the power of data to offer their consumers a seamless, convenient, and satisfying payment experience.

To have the greatest success in leveraging data, the implementation of secure data exchange—such as banks using data from merchants or small businesses to create a better payment experience for consumers— is necessary. The reason is simple: A broader range of data allows banks to better serve their customers.

Data reliant initiatives and capabilities in the payments industry enable real-time payments, which meet consumer expectations of a quick, painless payment experience. 

Additionally, data is playing an increasingly important role in revolutionizing the KYC process and making transactional screening more current and efficient.

Finally, we are just getting started and the cloud and data will continue to transform FinTech in 2022 and beyond.

Where do you see the cloud being leveraged the most in 2022?

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