Advanced collaboration tools, faster development cycles and improved time-to-market – this is how you can use cloud computing for scalability in effective FinTech collaborations
What are you using to streamline your FinTech collaborations
We’ve shown before that banks and traditional finance institutions are losing customers due to an inability to serve evolving customer needs. FinTechs, on the other hand, have more agility and advanced analytics to predict and solve those problems yet lack the stability and sometimes capital to scale efficiently and securely.
One obvious-seeming answer is collaboration: Both banks and FinTechs stand to gain by working together in effectively serving the market. Yet that’s often easier said than done as integrating new legacy systems is a time-consuming process.
So we’ve begun looking into potential platforms for collaboration – see our recent look at using blockchain in banking to streamline collaborations. However, there’s another option – cloud computing.
Here’s how using cloud computing for scalability can help you collaborate more effectively in the finance space…
One of the biggest hurdles to FinTech collaboration is integrating the systems. Banks’ systems might seem outdated, but they’ve spent decades building them to be robust and secure. Integrating that with new tech can seem like more trouble than it’s worth, considering the new system might be owned by a startup – who, sadly, from the bank’s perspective, is a newcomer that could go belly up tomorrow.
Cloud computing offers a dynamic solution: A dedicated separate system on the cloud that allows both the bank and the FinTech to bypass their own systems and build new solutions together on a more flexible, agile cloud system.
By leveraging cloud services, you can bypass all the traditional IT limitations, allowing for faster decision-making and enhanced operational flexibility. This agility is crucial in a sector where market conditions and consumer expectations constantly change.
It’s another way to unlock faster innovation in a few key ways…
As the name suggests, IaaS offers virtualised computing resources over the internet, providing a scalable infrastructure that banks and fintechs can use on demand. If you’ve always wanted to experiment with AI doing deep customer feedback analysis, for example, but have never had the sheer processing power available on your own system to deploy it, IaaS could be the perfect place to host and test it from.
This flexibility allows for rapid scaling of resources to meet workload and processing demands, facilitating smoother collaboration and experimentation.
PaaS delivers a framework that lets businesses create, manage, and deploy applications without the complexity of building and maintaining the infrastructure typically associated with developing and launching an app. Excellent for using design thinking in finance to rapidly build and test new innovations at scale.
For FinTechs, this means being able to develop solutions in a collaborative manner with banks, sharing tools, processes, and capabilities seamlessly.
See the essential guide to scaling your software, how to build apps 3 times faster and for up to 80% cheaper.
API gateways simplify the connectivity between FinTech applications and bank services, enabling secure data flow and functionality sharing. This component is crucial for creating integrated services that leverage agility and the bank’s scale.
Cloud platforms host a variety of collaboration tools that enhance communication and project management between distributed teams. These tools support real-time updates, shared access to documents, and synchronous working sessions – vital for projects spanning multiple organisations.
These cloud-based services provide centralised repositories designed to store, process, and secure large amounts of structured and unstructured data. Banks and FinTechs use these facilities to harness big data analytics for insights that drive product enhancements and customer personalisation.
Cloud solutions provide the agility needed to adapt quickly to market changes or new regulations, significantly reducing the time from concept to deployment.
Virtual workspaces in the cloud enable teams from both banks and fintechs to collaborate effectively, regardless of geographical locations.
See how data boosts customer loyalty.
Tools integrated into cloud platforms facilitate immediate communication, ensuring that all parties are synchronised in their efforts.
Cloud services offer sophisticated version control and synchronisation features, which are essential for maintaining the integrity of collaborative projects.
Learn how to leverage analytics for better user engagement.
The development environment in cloud platforms can significantly shorten development cycles, allowing for rapid testing and iteration of ideas.
With streamlined development processes, products and services can be launched faster, keeping competitive edges sharp.
Cloud platforms facilitate easier integration of new tools and services into existing infrastructures, reducing complexity and potential disruptions.
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Despite its many benefits, cloud-based collaboration is not without challenges. Issues such as data security, regulatory compliance, and ensuring consistent service quality across cloud services must be addressed. Additionally, organisations often face hurdles in managing multi-cloud environments and must strategise to avoid vendor lock-in.
See why you need a digital consultant in today’s market and how to boost innovation in banking and finance.
Need help with more efficient ways to scale, innovate or collaborate?
Speak to our FinTech-specialist technical consultants to help you get there fast.
