Cloud computing in fintech has become an emerging trend that has had a significant impact on the needs of the financial sector and has given it a tremendous opportunity to grow. The global market size of the fintech sector is expected to reach $124.3 Bn by the end of 2025, with a compound annual growth rate of 23.84%.
Even as an increasing number of personal and professional transactions occur in digital format, it has become critical for established brands as well as fintech startups to provide their customers with better services. This includes services such as speed, reliability, and security, which is possible through cloud computing as it allows for the secure storage and analysis of large and important data.
Cloud computing has provided businesses with a low-cost solution for data storage and sharing, as well as the added benefits of secure storage, interoperability, scalability, and 24/7 uptime. This has the added benefit of allowing the fintech sector to operate across platforms/apps and create customised experiences for clients all over the world.
Some of the key cloud computing developments shaping the fintech sector are as follows:
Geo-Redundant Cloud Data Centres
Storms, power outages, or hardware failure may disrupt regular business operations, resulting in downtime and data loss. Geographic redundancy will help businesses maintain operational continuity in the event of calamity by allowing them to easily migrate vital applications and data to one of the geographically distributed secondary locations.
It is critical to ensure that IT systems and applications that require high availability have geo-redundant setups in order to easily transition to a secondary location in the event that your primary site fails or becomes inaccessible.
Regulatory Compliance
All cloud service providers must comply with banking-related regulations such as PCI DSS and PCI 3DS.
Following the minimal security requirements set out by PCI DSS enables financial institutions and consumers to guarantee that the risk of loss from fraud and cyberattacks is kept within acceptable bounds.
Self-Service Applications
Given the exponential growth of financial data, managing it without cloud services could have been difficult. Cloud technologies have enabled fintech companies to securely and reliably store and manage data.
It also enables businesses to use clever loan, payment, and fraud prevention techniques. It provides businesses with a highly secure platform, advanced engineering, and configurable services that enable them to provide excellent customer service.
Source: Inc42
