# Fintech & Cloud Computing: A Perfect Match Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-30 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: The Evolution of Fintech: Meeting the Needs of Modern Meta Description: Discover how fintech is revolutionising the financial industry by providing convenient, secure, and efficient services for modern consumers and businesses. URL: https://financedigest.com/fintech-cloud-computing-a-perfect-matchhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-947075714-1736815678401-compressed.jpg) _![Adam Gaca, Head of Cloud Ops at Future Processing](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/104-1736815678351-compressed.jpg)_ _By **Adam Gaca,** Head of Cloud Ops at_ [_Future Processing_](https://www.future-processing.com/) As inflation rises and the economy fluctuates, a significant number of consumers are beginning to look for alternative ways of banking and managing their finances. This is where fintech comes into play, as it offers a wider range of services that align with the needs of modern consumers. The fast-growing industry covers most financial services that are available online, from digital lending and mobile banking to cryptocurrency and insurance. Over the last few years, the growth of [financial technologies](https://www.statista.com/statistics/1055356/fintech-adoption-rates-globally-selected-countries-by-category/) has been rapid, exposing the sector to a range of difficulties from scalability to security. **Evolution of Fintech** Financial technologies allow vendors to access financial services and tools that allow them to better market online and reach a wider customer base, which is a step forward in [supporting small businesses](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world") with limited financial resources. Additionally, as the UK market is evolving at a rapid rate, it becomes the target of cybercriminals as [fintech companies obtain more valuable data](https://www.financedigest.com/2023-fintech-prediction-secure-and-private-data-usage-is-key.html "2023 FinTech Prediction: Secure and Private Data Usage is Key") to protect than ever before. Beyond digital risks, there are many security [threats surrounding digital](https://www.financedigest.com/3-top-digital-asset-threats-facing-your-brand-in-2017.html "3 top digital asset threats facing your brand in 2017") banking. Most cybercriminals use social engineering techniques to gain access to the target [organisation’s networks](https://www.financedigest.com/6-steps-to-organising-an-introvert-friendly-networking-event.html "6 Steps to organising an introvert-friendly networking event "), which is a growing danger for digital corporations. [Reducing fraud](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD"), which is an increasing issue for many businesses, is certainly a goal for financial services providers. Fintechs can help [businesses navigate this challenge by employing smart devices such as mobile](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business") phones or wearable gadgets that store biometric data to help authenticate individuals. **Meeting the Needs of the Modern Consumer** The flexibility that fintech has to offer attracts global consumers, [small businesses and startups to adopt these tools over traditional banks](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners"), for their ability to deliver universal digitised services in a quicker, easier and more cost-efficient manner. Consumers use fintech services for electronic payments via apps like Klarna, PayPal or Revolut, which offer free [online accounts that function no differently from traditional bank](https://www.financedigest.com/dutch-online-bank-bunq-applies-for-u-s-banking-licence.html "Dutch online bank Bunq applies for U.S. banking licence") accounts. The modern [financial consumer](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists") is open to different ways of banking, but is also aware of risks associated with new technologies. Although the majority of [fintech companies seem to be matching](https://www.financedigest.com/fintech-v-the-banks-uneasy-bedfellows-or-a-match-made-in-heaven.html "FinTech v the Banks: Uneasy Bedfellows or a Match Made in Heaven?") those expectations on a similar level, we can’t dismiss the customer satisfaction that further drives [businesses’](https://www.financedigest.com/overcoming-challenges-in-claiming-the-employee-retention-credit.html) growth. **Considering Modern and Emerging** [Technology Trends](https://www.financedigest.com/from-the-experts-5-payment-technology-trends-to-look-out-for-in-2016.html "FROM THE EXPERTS: 5 PAYMENT TECHNOLOGY TRENDS TO LOOK OUT FOR IN 2016") Keeping consumers’ changing demands in mind, the industry has observed a shift in making payments more convenient to suit their customers. From utilising [mobile wallets and contactless payments](https://www.financedigest.com/what-is-the-optimum-mobile-payment-mix.html "What is the optimum mobile payment mix?"), mobile banking and insurance to investing and savings apps. Beyond investing in a stock or foreign currency, we witnessed a large interest in cryptocurrency, which offers a completely new form of investment that fintech apps now facilitate. [Businesses](https://www.financedigest.com/overcoming-challenges-in-claiming-the-employee-retention-credit.html) are now aware of easy access to a range of services including lending and [credit solutions](https://www.financedigest.com/jaywing-releases-horizon-a-new-ifrs-9-modelling-solution-that-encapsulates-its-extensive-credit-risk-expertise.html "Jaywing releases Horizon, a new IFRS 9 modelling solution that encapsulates its extensive credit risk expertise"). These new unique selling points attract [businesses who look for a more effortless experience and are expecting](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease") fast results, which drives fintech’s need for better scalability. More businesses using [financial technologies lead to increasing concerns over data security](https://www.financedigest.com/how-financial-services-are-overhauling-security-to-defend-against-spoofing-scams.html "How financial services are overhauling security to defend against spoofing scams"), the very worst nightmare of any digital enterprise. All these challenges lead to the goal of maintaining user retention. It took decades for traditional [banks to persuade consumers to trust them with their finances](https://www.financedigest.com/why-finance-professionals-must-bank-on-a-journey-to-the-cloud.html "Why finance professionals must bank on a journey to the cloud"), and it is still a challenge to maintain the loyalty of consumers who chose to look for better service beyond the standard. **[Cloud Computing](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds")** There is no panacea when it comes to fintech companies [overcoming the increasing challenges](https://www.financedigest.com/5-challenges-to-overcome-in-governance-risk-and-compliance-magazine.html "5 Challenges to Overcome in Governance, Risk and Compliance-Magazine") in today’s digital marketplace. There are, however, some [technological solutions](https://www.financedigest.com/peppermint-technology-revamps-communications-with-via-voice-solution.html "PEPPERMINT TECHNOLOGY REVAMPS COMMUNICATIONS WITH VIA VOICE SOLUTION") that are worth considering. The biggest is [Cloud computing](https://www.financedigest.com/the-value-of-cloud-computing.html "The Value of Cloud Computing"), which offers solutions to alleviate some issues fintech companies are exposed to through improved flexibility, increased security, bolstered innovation, and better scalability at a global rate. [Cloud computing](https://www.financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023.html "Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023") defines anything that involves providing hosted services over the internet, they include infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS). The aim of [Cloud computing](https://www.financedigest.com/tomorrows-world-how-cloud-computing-will-impact-the-financial-services-sector-in-2016.html "TOMORROW’S WORLD: HOW CLOUD COMPUTING WILL IMPACT THE FINANCIAL SERVICES SECTOR IN 2016") is to provide easy, scalable access to computing resources and IT services regardless of location. Financial [firms can gain a higher](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit") level of data protection, fault tolerance, crisis recovery and eliminate the risk of delays and disruptions in the supply chain. Cloud computing also delivers a high level of redundancy and system backup at a more affordable price than traditional managed solutions. With access to large data from small [businesses](https://www.financedigest.com/overcoming-challenges-in-claiming-the-employee-retention-credit.html) or consumers, [fintech companies gain agility by aligning their services](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs") with their clients’ needs and offering further digital solutions, which certainly works towards remaining competitive in a rapidly changing marketplace. [Fintech is a growing market](https://www.financedigest.com/2021-and-the-fintech-market-bonanza.html "2021 and the fintech market bonanza") which developed immensely as a response to consumers’ needs, in light of recent events such as the COVID-19 pandemic, Brexit and economic uncertainty, but also the ongoing supply chain crisis that caused huge disruptions to data centres, which without access to components struggle with building their own infrastructures. Industries which accepted new norms now thrive using emerging solutions to leverage the benefits of [digital transformation](https://www.financedigest.com/redefining-the-human-touch-with-data-driven-digital-transformation.html "Redefining the human touch with data-driven digital transformation"). As the market grows and innovation is a significant driver of a competitive edge, [businesses need to consider](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") how best to implement these new technologies. Cloud computing is undeniably a growth propeller in the [fintech industry’s](https://www.financedigest.com/2022-the-year-that-facial-recognition-will-lead-the-fintech-industry.html "2022 – The year that facial recognition will lead the fintech industry") expansion by promoting safer data storage, improved scalability, faster processes and better security. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---