Generally, cloud computing refers to computing services delivered over the internet as contradistinguished from computing services hosted on a personal network on personal premises. Cloud computing services range from the simple internet based email to the complex customer relationship management applications. Some of the big names in the fintech cloud computing sector are:
- Amazon Web Services
- Google Virtual Cloud
- Microsoft Azure
- IBM Bluemix
In the fintech sector, cloud computing takes different forms. There is what is known as a public cloud which is accessible to any interested user. A perfect example is the Amazon Web Services that includes a pay as you go outsourced model. Once on the platform, you will be able to subscribe to additional services and apps.
Secondly, there is the private cloud that is usually hosted by an organization to be used by its members, employees, and partners only. Google Virtual Cloud is one of such private clouds targeting retail and consumer banking. On the other hand, a hybrid cloud combines the aspects of public and private clouds. In this category, we have Microsoft Azure which allows customers to keep some data on private sites.
It is also important to note that fintech cloud computing can be offered as:
- Infrastructure as a Service (IaaS)
- Software as a Service (SaaS)
- Platform as a Service (PaaS)
Pros and Cons
New technology comes with advantages and disadvantages. Fintech cloud computing is in no way an exception to this rule. However, the advantages are immense and outweigh the risks. Further, appropriate interventions are being undertaken to minimize the risks
For fintech firms, recruiting employees is an uphill task. There is a high demand for software experts as many companies are incorporating technology into their operations. In the circumstances, gaining and keeping such an expert is critical for fintech firms. Some fintech firms have turned to cloud computing HR solutions to ensure that they get and retain the right personnel.
In the modern business environment characterised by high speed of transactions, real-time reporting and analytics are critical. A central location where employees can easily access and analyse data is crucial for the better running of fintech firms. Cloud computing offers the solution in form of dashboard views and predictive analytics enabling all relevant employees to get a current view of the firm at all times.
On the downside, hacking is a major threat to fintech cloud computing. Financial data is quite sensitive and needs to be safeguarded at all costs. Secondly, the fact that cloud computing allows many people to access and manipulate data through a single portal poses a significant risk because an inadvertent mistake by a single individual can transfer across the entire system.
Currently, all efforts are being made to improve the security in fintech cloud computing.