The impact of cloud computing in fintech is evident. While the use of cloud technology within fintech services is still catching on, the opportunity for growth is massive. Even though cloud adoption is still in its early stages, cloud computing in fintech is growing at a steady pace. Moreover, a total of 22% of all applications within fintech are currently running on the cloud. That being said, this leaves substantial room for growth and innovation.
Moving forward, banks are now able to partner with fintech startups with ease. Most noteworthy, startups are developing as cloud-native from the very start. The global fintech market size expects to grow to $124.3 billion USD by the end of 2025 at a Compound Annual Growth Rate of 23.84%. As an increasing number of businesses make the move to adopt a digital payment system, the demand for fintech solutions is only expected to grow and drive market growth.
Curious to learn more about the benefits of cloud computing in fintech and some critical trends that are shaping fintech as we know it? Keep reading to find out.
Critical Trends and Benefits Of Cloud Computing In Fintech
Some of the major benefits of adopting cloud computing within the fintech industry are increasing flexibility, better security, driven innovation and a rise in scalability. These benefits are currently shaping critical trends that are driving growth within fintech.
1. Data Aggregation
Storing any findata such as account balance information, spending habits, budgeting, and cash flow securely is a must. For instance, compiling information from banking databases allows for proper processing. The availability, as well as confidentiality, of this findata is extremely convenient not only for financial institutions but users as well.
2. Self Service Application
From the surge of self-service kiosks to being able to control a bank account from a simple application in your handheld device, self-service is giving increased autonomy and flexibility to users. When users are able to access financial information, send money and even create a budget via their phone then they have more opportunities to take control of their finances. In other words, thanks to these developments in software users can complete a transaction without the help of any human representatives.
When it comes to any financial information, security is an obvious priority. Therefore, thanks to the power and security of cloud computing fintech leaders can rest assured that their data is safe. Likewise, traditional IT setups can run the risk of cyberattacks to phishing emails, but cloud computing gives high resilience through security architecture.
The True Impact Of The Cloud
In conclusion it’s safe to say that the Fintech community is dynamic and driving the industry shift towards cloud computing. Moreover, this is only expected to keep growing. Certainly, no matter what industry you’re in, the experts at VEXXHOST can help you build a private cloud infrastructure. No matter the scale of your business, you can benefit from critical developments within the cloud. Contact us today to learn more.