In the past few years, Financial Technology has become increasingly popular due to the immense benefits it offers to both the consumers and the startup. Financial Technology Opinion shows that the rapid increase in Financial Technology firms in the emerging markets has led to the development of digitally-minded entrepreneurs.
According to the new financial technology index, Fintech Startup all over the world aims to compete with traditional economic methods to deliver business services. Already, the financial sector is going through a vast and exciting as well as a much-needed transformation with particular areas such as blockchain, machine learning, and Artificial Intelligence being developed at a rapid rate.
For instance, financial technology opinion shows that Fintech firms in Europe are attracting technological advancements like never before and this has been paving ways for recent developments.
Initially, most of the IT innovations within the industry were targeted at impacting internal operations and processes. However, when mobile devices became adopted by the masses, the tables turned to the consumer in the plan to develop a mobile-fast experience which is comfortable and not limited to physical branch interactions.
Today, most of these innovations are available including e-deposits, contactless payments, capital market, digital lending and P2P payments. However, this rising consumer adoption brought a new challenge to the fintech industry-forcing them to move to the cloud to address such challenges.
Financial Technology Opinion shows that this move to the cloud has opened up further avenues for fintech innovation, leading to better customer experience than ever. For instance, leveraging blockchain and advanced analytics together will offer fintech startups a near-instant loan approval which would generally take at least a day in the current digital banking system.
Coupled with this, big banks and institutions have begun to recognize fintech innovations which often result in partnership with the fintech industries. The top 5 financial technology challenges addressed by the cloud includes the following
Dynamic Provisioning: Before the adoption of the cloud, it takes weeks or months before a new solution is a setup. However, adoption of the cloud has helped Fintech firms package their digital solutions to be rapidly provisioned in a cloud environment by taking advantage of the dynamic provisional features of the cloud. The setup which often takes months to roll out can now be done within hours coupled with series of high-performing servers configured for production and test deployment.
Hyperscale Data Management: Financial Technology Opinion shows that the volume of data in the financial services sector from different sources is often much and this makes data management a significant challenge for Fintech firms. However, with the cloud adoption, data management is entirely more comfortable this is due to the invention of data lakes, data aggregation and data compliance frameworks which helps fintech firms to take intelligent approaches to lend, payment, and detection of frauds.
Advanced Analytics and ML Technologies: Cloud adoption for Financial Technology has also helped Fintech firms to take advantage of Machine Learning as service and demand-Big-Data to perform specialized tasks like fraud detection and credit scoring-ranging from analytics to security.
Self Service Catalog and DevOps Automation: The cloud offers Fintech firms self-service capabilities. This accelerates processes such as feature deployments, access management, and application provisioning, enabling engineers to focus more on product innovation instead of wasting time on operational issues like system and procurement provisioning.
Cloud Partner Ecosystems Maturity: With cloud providers getting their cloud services certified for banking and financial regulations compliance, more utilization of cloud partner Ecosystems like AWS Financial Services to efficiently meet financial industry and banking regulatory requirements or performance, disaster recovery, availability to enables faster time-to-time market
Finally, every business must embrace digital transformation no matter how challenging it may be, while the digital transformation is paving the way for Fintech revolution, the cloud is the underlying platform causing this great innovation.
Also, the new Financial Technology index has depicted that soon Fintech organizations and cooperation with big financial institutions, the banking industry will no longer need to focus on risk avoidance but instead leverage on these emerging technologies.
Looking at the bigger picture, the success recorded will serve as a roadmap for other industries of all types and sizes.

Davide Zucchetti Fintech Review

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Published by Davide Zucchetti

Co-founder HiSkill; Business School Sole 24 Ore Professor; ICOBooster Co-Founder; FintechReview Co-Founder