FinTech companies are on the rise, and with good reason: they’re harnessing technology to improve and innovate traditional financial services. And as these companies grow, they’re increasingly looking to the cloud as a way to manage that growth.
Today, there are many cloud services providers for fintech companies that are giving the best solution in terms of services, cost, technology, and more. However, not all cloud providers are created equal. So which one is right for your FinTech company?
When choosing a cloud service provider (CSP), it’s important to think about what’s important to your company. In this article, you will learn some things you should consider when making your decision.
First, let’s briefly learn about Fintech and cloud computing services.
What is Fintech?
Fintech is a combination of the words “finance” and “technology”. It refers to any company that takes the assistance of technology to improve or streamline financial services and operations.
Fintech provides an evidently endless amount of uses going from mobile banking to cryptocurrency apps for both customers and businesses.
Machine learning methods, data science, and blockchain are being used by some of the latest fintech companies to accomplish everything finance-related.
The worldwide expansion of fintech organizations and markets seems to increase the risk of cybersecurity vulnerabilities in fintech infrastructure. Fortunately, technology is continuing to advance reducing current fraud risks and mitigating new ones.
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What is a cloud computing service?
Cloud computing services run via the internet instead of running on a specific device or fixed location. Generally, users can store files as well as use apps/devices that run on remote servers and access the data using the internet.
Cloud computing provides either public or private services. There are public platforms that offer their services when users pay for subscription packages. On the other hand, private platforms offer their services to a handful of users. A hybrid option is also available which mixes public and private services.
There are different types of cloud computing services that Fintech companies can take advantage of. They are
- Software-as-a-service (SaaS)
- Infrastructure-as-a-service (IaaS)
- Platform-as-a-service (PaaS)
Why do fintech companies need cloud computing services?
Technology is expanding and only relying on non-cloud technology cannot take Fintech companies very far to achieve a larger goal.
One of the main criteria for Fintech is to get connected with consumers from any location and at any time. The only way to achieve this is by using cloud computing services.
Fintech requires cloud computing to provide relevant financial services to the current generation. It assists companies to handle the large database along with accessing all the necessary tools for work.
|“Ignoring technological change in a financial system based upon technology is like a mouse starving to death because someone moved their cheese.”
Chris Skinner, Financial Technology Expert
Although initially, Fintech companies were hesitant to use cloud services, their views changed quickly after learning about the benefits of cloud technology. The following are some of the important benefits of cloud services for fintech companies.
Benefits of cloud services for Fintech company
- Access database and tools from any location and any time.
- No additional hardware is required for maintaining business servers.
- Cloud services providers provide regular updates, handle maintenance, and fix bugs.
- “Pay-as-you-use” pricing plans.
- Powerful features, services, and applications.
- A very secure database for storing data.
- Flexibility and scalability.
- Provides users with 24/7 uptime.
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Best cloud services providers for Fintech company
Now that you have some idea about cloud computing services. It’s time to learn about some of the powerful platforms that provide cloud services.
You can find many different kinds of cloud services providers in the market. However, there are only three platforms: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud dominating the cloud service global industry with 64% market share according to reports.
1. Amazon Web Services (AWS)
Amazon Web Services (AWS) is the world’s leading and broadly utilized cloud platform with over 200 fully functional services available from data centers around the world. It combines SaaS, IaaS, and PaaS to fulfill the needs and demands of businesses of various types.
AWS offers different kinds of services from computing, infrastructure management, and database, to application development. Some of the popular AWS tools are Elastic Compute Cloud, Virtual Private Cloud, Storage Service, AWS Data Transfer, and more.
Not to forget, it provides world-class security against cybersecurity vulnerabilities. It incorporates various security features including DDoS mitigation, inventory, and configuration, data encryption, Infrastructure security, etc.
2. Microsoft Azure
Although Microsoft Azure started on a journey after AWS and Google Cloud, it has become one of the top-level cloud service providers.
It offers analytics, computing, networking, and storage as well as other cloud services. Users can select and choose any services to make new apps or run existing apps in the cloud.
There are multiple categories in Azure that has more than 200 build-in products and services. These categories include the Internet of Things, AI and Machine learning, Networking, Mixed Reality, and more. Azure offers a very powerful security system using the ADADSC model.
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3. Google Cloud Platform
Among the big three, Google Cloud Platform (GCP) holds the smallest market share. But it doesn’t stop it from providing powerful specialized services to users mainly in some major areas like machine learning, big data, and analytics.
Google Cloud provides organizations with over 90 services including computing, analytics, storage, and networking. Other Google products like G Suite, Google Hardware, Google Maps Platform, Chrome Enterprise, Google Identity, etc. are also available in the cloud.
Google keeps expanding its cloud platform with better services such as big data and deep machine learning. On top of that, GCP has strong cloud security features including Data Encryption, Virtual Private Cloud, and Intrusion Detection System.
Choosing a cloud services providers for a Fintech company
Although there are only a handful of options for cloud services providers to choose from, you still need to consider some key things to get the right one. This is necessary to choose the platform that fits the best for your Fintech company.
1. Requirements for the business
Select a cloud service provider that meets your company’s needs. Vendors will present you with a list of specs; select the plans that best suit your company’s requirements.
You’ll be able to swiftly compile a list of vendors this way. It’s simple to eliminate service providers who don’t meet your company’s requirements.
While cloud migration is an expensive process, selecting the best plan is critical. Determine the exact price the organization is willing to spend on cloud services, then compare the price plans and licenses between the cloud service provider you shortlisted.
3. Data Security
Organize the data that gets into the cloud into categories. If you’re going to maintain a few sensitive files, make sure they’re protected. If you intend to store a large amount of data in the cloud, double-check the server’s physical location. Verify a cloud solution provider’s data security compliance and see if they can prevent data breaches or not.
4. Advanced technology
Select a service provider with strong technological features and operational services. Check to see if the cloud service provider has the right technology that meets your requirements.
Also, ensure that your company has the skilled staff to operate the powerful cloud services. Some CSPs outsource technology options that might be advantageous in some cases but disadvantageous in others.
Pick a good cloud service provider that provides support 24 hours a day, 7 days a week. Professional assistance is required during the relocation and deployment process.
You need to search for third-party vendors who have sufficient expertise with the target platform and will handle hurdles. In any event, always be aware of what you are getting from your provider before taking the deal.
6. Standards and certifications
Select a service provider that meets industry standards such as ISO 27001. Some of the finest industry standards to look for in a cloud service provider are an organized procedure, effective data governance, and finally quick service support.
You need to evaluate the reliability cloud service provider by looking at its performance throughout the previous year. You can do a little research on the internet to find out.
Identify the areas where the business can deal with both scheduled and unforeseen downtime. It’s important to know this in case there is a need for data recovery at times such as natural disasters.
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Cloud services has been a game-changer for fintech companies. It has made the financial system more effective than ever. So, without a doubt, a cloud services provider is a must-have for fintech.
It’s very important to choose a dependable platform despite cloud service providers offering a wide range of services. Make sure to tick all the requirement boxes while choosing the platform for your company.
Compare the services and pricing between cloud service providers and contact them to get the best offer you can get.
For more information about Fintech, stay tuned with Crazy FinTech!!!