# Platform as a Service: Reshaping the future of fintech Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-30 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: 4 Key Benefits of Platform as a Service in Fintech Meta Description: Learn how Platform as a Service (PaaS) is reshaping the future of fintech with improved time to market, scalability, and master data management for enhanced URL: https://financedigest.com/platform-as-a-service-reshaping-the-future-of-fintechhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-business-concept-businessman-working-laptop-global-strategy-virtual-iconi-sbi-3019850521-1736838094665-compressed.jpg) _By_ **_Lynne Darcey Quigley_** **_,_** _C_ _EO and Founder of_ [_Know-it_](https://know-it.co.uk/) Customers crave convenience. However, financial institutions often struggle to meet their demands whilst safeguarding information. As [banks comply with evolving regulations](https://www.financedigest.com/post-crash-banking-regulation-is-transforming-the-world-of-corporate-lending-for-the-better.html "Post-crash banking regulation is transforming the world of corporate lending – for the better"), customers will benefit from the opening of APIs to customer data. Platform-as-a-Service (PaaS) is a utility-based platform that allows users to develop, run and [manage applications in the cloud](https://www.financedigest.com/workforce-management-the-next-cloud-resource-for-businesses.html "Workforce management; the next cloud resource for businesses?"). Offering [fintech institutions the ability to adapt to the ever-changing needs](https://www.financedigest.com/if-the-nation-backs-fintech-we-need-to-address-a-few-things.html "If the nation backs FinTech, we need to address a few things") of their customers via customised infrastructures, it allows them to fully embrace the cloud. By leveraging the power of the cloud, businesses can avoid the [cost and intricacy associated with building and sustaining traditional software](https://www.financedigest.com/how-much-does-cloud-based-financial-software-cost.html "How Much Does Cloud-based Financial Software Cost?") and servers in-house. The agility of PaaS means that fintech [companies can have 24/7 access to real time technology](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies"). Through understanding the potential [offered by PaaS and the unrestricted capacity of the cloud](https://www.financedigest.com/oracle-offers-its-mysql-heatwave-database-and-analytics-on-amazons-cloud.html "Oracle offers its MySQL HeatWave database and analytics on Amazon’s cloud"), numerous fintech’s have built entirely virtual payment operations. By linking customer accounts to [services “delivered” by banks](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs"), these organisations can offer a full range of banking services without technically owning any of the infrastructure behind it or any of the bank’s customer relationships. In light of this, here are the four key benefits of Platform as a Service that is [reshaping the future](https://www.financedigest.com/2020-the-paradoxical-year-that-has-reshaped-the-future-of-motor-insurance-and-related-sectors.html "2020: The paradoxical year that has reshaped the future of motor insurance and related sectors") of fintech. **Improved** [Time to Market](https://www.financedigest.com/tough-times-and-risky-business-which-emerging-market-assets-are-a-bet-worth-taking.html "Tough times and risky business – which emerging market assets are a bet worth taking") The improved speed of development and deployment is a key advantage of PaaS. Developers have access to several automated tools and technological innovations, resulting in a significantly increased turnaround time in the creation of apps, [enhancing the customer experience](https://www.financedigest.com/enhancing-the-guest-experience-in-hospitality.html "Enhancing the guest experience in hospitality"). Hence, the app development lifecycle is reduced, compared to the traditional one, and more new [products can enter the market](https://www.financedigest.com/the-microalgae-based-product-market-to-grow-based-on-instilled-innovation.html "The Microalgae Based Product Market To Grow Based On Instilled Innovation") faster. This model is already delivering a [key competitive advantage for fintech’s](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech"). **Scalability** A key advantage of a self-built platform is as fintech’s of all sizes begin building an application tailored to a certain number of users over time, as the company begins to expand and attract more users, it allows [real time](https://www.financedigest.com/its-time-for-real-time-accountancy.html "It’s time for real time accountancy ") updates to serve the growing customer base. The issue faced by [fintech companies](https://www.financedigest.com/why-its-essential-banks-start-thinking-like-tech-companies-not-just-fintechs.html "Why it’s essential banks start thinking like tech companies – not just fintechs") whom are not availing of PaaS is that initial resources are not enough to scale your own platform as it is an expensive challenge that may incur downtime. Certainly, fintech’s can try solving this issue in advance and create a platform, [considering their expected scale for the future](https://www.financedigest.com/finnish-centre-right-eyes-coalition-talks-as-defeated-marin-considers-future.html "Finnish centre-right eyes coalition talks as defeated Marin considers future"). However, this can prove extremely [expensive with high levels](https://www.financedigest.com/understanding-the-different-levels-of-maturity-in-travel-and-expense-management.html "Understanding the different levels of maturity in travel and expense management") of risk since there are no guarantees of future performance and success. The scalability of PaaS is provided by default due to a scaling mechanism. It involves the automatic allocation and release of the necessary resources, depending on the number of users served by the application. As a result, fintech’s can easily upscale at any time without the fear of [becoming the victim](https://www.financedigest.com/how-to-ensure-your-new-business-doesnt-become-a-victim-of-covid-related-fraud.html "How to ensure your new business doesn’t become a victim of Covid-related fraud") of its own success. **Master [data management](https://www.financedigest.com/use-case-centric-data-management-why-it-is-the-future-of-data-management-for-financial-institutions.html "Use Case centric data management – Why it is the future of data management for financial institutions")** Master data management (MDM) is essential throughout company-wide data points, that results in [organisations having a single point of reference for data](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  "). This PaaS [service feature offers insights ranging from company operations to client](https://www.financedigest.com/brand-metrics-bolsters-client-services-team-as-brand-lift-measurement-booms.html "Brand Metrics bolsters client services team as brand lift measurement booms") information to organisational goals. This data can reference [key information regarding customer](https://www.financedigest.com/fiserv-survey-shows-digital-services-key-to-customer-loyalty.html "Fiserv Survey Shows Digital Services Key to Customer Loyalty") transactions, and analytical reports to boost decision making. Once installed, fintech’s can then execute actions based on the data as they [see fit](https://www.financedigest.com/portugal-pm-welcomes-lufthansas-interest-in-tap-scholz-sees-good-fit.html "Portugal PM welcomes Lufthansa’s interest in TAP, Scholz sees good fit"), keep records of data history, and make projections based on findings. **In conclusion** It’s quickly becoming evident that the platform-as-a-service concept is an advancement that [financial businesses](https://www.financedigest.com/how-to-create-financial-goals-for-your-business-in-2021.html "How To Create Financial Goals For Your Business In 2021") cannot afford to neglect. PaaS is one of the most powerful methods to managing costs and minimising [risks associated with payment](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns") processing. In addition to this key benefit, it frees up valuable resources allowing [organisations to concentrate on what matters most — producing customer-focused products and gaining a competitive](https://www.financedigest.com/organisational-effectiveness-establishing-competitive-difference.html "Organisational Effectiveness: establishing competitive difference") edge. ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/picture51-450x646-1736838094656-compressed.jpg) Lynne Darcey Quigley, CEO and Founder of Know-it --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---