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4 Minutes

The Advantages of Cloud in the FinTech industry

Customer expectations of financial service providers continue to rise, and adding digital offerings is crucial for companies who want to remain competitive in the face of increased customer preference. In light of these changes, companies are increasingly utilizing the cloud as a way to accelerate their digital transformation for customers. Throughout this article, we take a closer look at what is ahead in terms of cloud in the fintech industry.

6/7/2021

According to McKensey, using technology to transform customer experience has increased customer satisfaction by approximately 20%, it also cut the cost-to-serve by 20 to 40%. Not to mention the 20% increase in conversion McKensey reported as an outcome of using technology to transform the customer experience.

Consumers do not consciously separate digital and in-person experiences anymore.

They are now used to having real-time access to information from any device, any location, and at any time. As a result, they expect instant information and customised offers to fit their needs, whenever they like.

Benefits of leveraging clouds in financial institutions

In response, financial institutions are required to look past the legacy technologies and deep rooted infrastructures they are still using, which is admittedly quite challenging, but Cloud enables financial institutions to run an experiment in one area of the business and then replicate it as necessary across geographies and regions.

1-Enhanced scalability

Financial institutions that turn to the cloud can drive meaningful business outcomes. For instance, leveraging the cloud allows them to build better digital offerings gradually as they are able to run experiments and test them at a small scale before fully rolling out new systems from the ground up.

cloud data lakes features
Data Lakes Features. source: lakefs

2-Deriving value from data

We are all aware how valuable customer data is for businesses, but the truth is that large volumes of data are meaningless without the right analytics. As a result, firms are using cloud-based data lakes to store information and build a foundation for analytics. These data lake architectures allow firms to better take in large data volumes and turn them into actionable insights. 

3- Improving data security

2020 has been a sharp reminder that every company is prone to unexpected and long term change.  Particularly, players in the financial services space must adapt as the challenges facing them pile up. In addition to this, financial institutions are being forced to deal with an explosion in cyber-crime. That being said, the Cloud provides a safe alternative to outdated systems that are increasingly vulnerable to data tampering. With the potential for instant identification of potential breaches, and the embedded security to safeguard banking data, cloud solutions can provide added comfort from cybersecurity risks. Not only that but Cloud solutions can also provide a high level of redundancy and back-up to improve disaster recovery.

The benefits data can provide for businesses are countless, but if you want to hear what fintech experts have to say about the future of cloud check out our latest podcast season where we take a deeper dive into the use of cloud & data in banking!

The conclusion

Smart organisations are restructuring how every interaction is viewed and how data is used to remain competitive amid evolving customer expectations. Today, cloud-based data lakes can store information and build a foundation for analytics. And finally, cloud data platforms can put analytics into the hands of businesses and decision makers.

Knowing that using the cloud is now a no-brainer for every business, what is the reason that there are still some out there who have not migrated to the cloud yet?

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