In an ever-changing business landscape, the worldwide COVID-19 pandemic has only heightened the need for businesses to become more agile and adaptive than ever before. Financial technology firms, in particular, must begin implementing strategies to meet evolving customer expectations, new technologies, and substitute business models. Cloud solutions are increasingly taking center stage as CIOs and CTOs embrace change. We will now discuss the main reasons why FinTech companies are incorporating cloud computing solutions in their various processes.
Cloud computing has remarkably transformed & redefined how business technology is used, opening up enormous opportunities for finance operations. And we’re not making any assumptions. Cloud spending has increased to 37% i.e. $29 billion in the first quarter of 2022, according to data. Cloud solutions free finance processes from administrative tasks, allowing them to reclaim valuable time spent on time-consuming and repetitive tasks while also giving them a fantastic chance to lead digital transformation.
Fin-Technology Companies’ Future
In the future, finance operations will face numerous challenges and opportunities to digitally transform. To achieve strategic goals, FinTech firms must discover new ways of working, employ robust technology and tools, and invest in Fintech development services. Meanwhile, they must cut costs wherever possible while maintaining business continuity.
Nowadays, one of the foremost focus areas for any Fintech company should be the modernization of its manual, out-of-date processes to the cloud. According to the recent annual Finance Trends Survey, cloud computing solutions are a top priority for 72% of CFOs and VPs of fin-tech companies.
Cloud solutions also allow financial management to gradually become fully remote. According to the latest Gartner survey of 317 CFOs and finance leaders, 74% of companies plan to shift at least 5% of their current on-site workforce to permanently remote positions after the COVID era.
Key advantages of Cloud Computing Solutions for Finance Operations
1. Reduces IT Spending and Workload
Moving core finance operations to the cloud allows Financial Technology companies to reduce IT spending. Furthermore, it shifts the IT budget from maintenance to digital innovation, allowing organizations to focus on the implementation of critical finance initiatives such as workflow optimization, report creation, and revenue recognition.
2. Automates Routine Tasks
Key activities like data entry and financial analysis can now be completed in a short period of time due to the cloud’s time-saving features. By automating these repetitive and mundane tasks, valuable resources in finance operations are freed up, allowing corporate leaders to focus more on areas of true business value and growth.
3. Improved Accessibility
Because of the ongoing pandemic, there has been a rise in the market for cloud computing services. With advanced security and continuous internet connectivity, systems and company data can be made available to the finance function from anywhere, assisting quick decision-making. This increases the agility of business operations and assures more flexi – work and cost-effective faculty structures.
4. Increased speed, efficiency, and precision
Moving to cloud infrastructure empowers fintech firms to accelerate day-to-day operations and vast volumes of data. Redundancy and human errors can be reduced by streamlining and automating core operations. This ultimately saves time, finances, and manual labor in keeping your financial information accurate and up to date.
5. Improved Collaboration
You can securely access, edit, and share business-critical documents when interacting with suppliers or other participants of the finance operations, no matter where you are. Cloud-based company processes ensure real-time updates with improved visibility. According to the Forbes survey, 64% of participants said that cloud-enabled software solutions have assisted their business processes more quickly than ever before. Furthermore, this increases productivity and boosts your business.
How to Implement Cloud Computing Solutions in the Business?
1. Business Case Creation
The cloud assists in redefining and innovating IT strategy. It also serves as a catalyst for the rapid development of new capabilities and services that satisfy business requirements. Several digitalization solutions are already cloud-based, including customer relationship management financial services, enterprise management, and resource management. They are, however, not commonly communicated as such.
A cloud business case should emphasize how the bank can use cloud computing solutions to drive valued customer insights, offers, and experiences; boost revenue; reduce costs; find and onboard the best talent & provide steady enterprise operating platforms. 3rd party cloud hosting service providers can actually assist in reducing the development time.
2. Vendor Administration
In the coming years, the banking industry will gradually migrate away from hybrid and multi-cloud environments. Meanwhile, vendors are likely to regularly introduce new cloud-based services and capabilities. Fintech firms should prevent vendor lock-in to enable smooth adaptation to market changes without having to re-platform when switching vendors.
Furthermore, vendors may give better pricing flexibility over time by leveraging different cloud platforms. It may assist a company in shifting workforces from one cloud to another and addressing specific business requirements. With the assistance of other cloud hosting service providers, they could implement best practices built on a single cloud platform. Using a multi-cloud strategy or multi-vendor can also be complicated and difficult.
3. Data Safety
Data security has always been a top priority for bank executives. An enterprise’s traditional platform and capabilities are limited in detecting new threats & security vulnerabilities. This limitation can be overcome with the help of cloud solutions.
Security is distinct in the cloud due to the tools & techniques that are native and particular to a specific cloud provider’s environment and the service providers particularly are accountable for the safety of the lower-level layers of the framework.
4. Compliance with Regulations
Cloud computing solutions can help banks and financial institutions meet evolving regulatory reporting requirements. Such features have become essential in a sector that deals with international transactions.
Last Thought about Cloud Computing
Finance processes have been moving to the cloud at a slower pace still it is never too late to begin progressing to the cloud. In 2021, CFOs must reconsider the role of finance operations and make a step toward digitalization.
As a major supplier of fintech services provider, Big Oh Tech is here to assist you at every stage of your FinTech firm’s digital transformation journey. Contact us to explain your business needs with our team of experts.