With expertise in product management and operations in the telecom sector and experience of about15 years, Vidhu Nautiyal is the Co-Founder & Chief Revenue Officer of CloudConnect Communications Private Limited (CCPL). Driving Revenue, service engineering, product management, and operations at CloudConnect, Vidhu has worked with some of the biggest brands in the telecom industry, including Blackberry.
As the financial services industry in the Asia Pacific continues to change, cloud technology continues to speed up digital innovation across all financial institutions significantly. As businesses use data analytics to retain their competitiveness, increase efficiency, and create new revenue streams, new opportunities are opening up. By 2024, cloud spending in the Asia Pacific is projected to increase to US$200 billion with a CAGR of 20%.
Even though India continues to dominate the public and private cloud service investment and overall IT are spending, FIs may see short-term difficulties due to data governance, cybersecurity, and the skills gap. The solution to these problems is to update the cloud backend, maximise insights, and improve decision-making.
Addressing these challenges would enable data analytics platforms to be reinvented with a cloud-native architecture approach, starting with minimising performance difficulties, which can result in expensive downtime. An effective cloud platform service like internet telephony and Business VoIP can provide businesses with scalable, secure, and bidirectional connectivity across their fleet of intelligent devices. In addition, end consumers can access the data and insights through the organisations’ applications. As a result, FIs gain security, compliance, and customer satisfaction, guaranteeing a positive return on investment.
Cloud technologies, which can serve as a one-stop shop, might be able to meet today’s demands for finance. Fintech is now fully functioning as a “Cloud First” industry due to the growth and maturation of cloud technologies, which have a fascinating history and validation for enabling scalability, availability, dependability, agility, security, and favourable economics.
Growth of Cloud services in FinTech
India’s fintech industry is going through a significant shift, driven by cutting-edge technology like cloud infrastructure, machine learning, and artificial intelligence. Through the use of e-KYC, IoT, AI, and video KYC, enterprises have been able to boost the efficiency of their systems for digital signatures, account aggregation infrastructure, claims processing, payments, and savings marketplaces in India. In addition, users now feel more secure thanks to biometric identity verification technologies like voice, iris, and face recognition, which are suitable for the finance industry.
The rapid speed of innovation, the expansion of partnerships between banking institutions and fintech businesses, and India’s deep talent pool all play a significant role in the country’s rising technology usage. The repercussions of these shifts are undoubtedly being felt in colleges, where 32% of Indian graduates pursue studies in science, technology, engineering, and mathematics (STEM).
While the pandemic has boosted expansion in India’s fintech industry, it has also presented numerous difficulties. The risk of data security and privacy breaches is rising, platform outages are becoming more frequent, and adoption rates for micro, small, and medium-sized businesses are at an all-time high (MSME). Rapid technological advancements have created opportunities for organisations to digitise, but the inability of companies to attract and retain talent has prevented them from realising their full potential. The new normal has demonstrated how crucial cultural adaptation, rapid decision-making, and hybrid working methods are for luring young talent into the modern workplace.
The Fintech sector in India has long faced difficulties due to poor financial literacy. Only 47% of people have access to the internet, and many do not have bank accounts. This presents both a challenge and an opportunity for fintech companies. Through educational institutions and community forums, governments can establish new programmes and policies that will increase public awareness among Indians. Fintech enterprises are also impacted by changing policy requirements covering consumer protection, infrastructure security, cryptocurrency, payment rules, and investment exits. Reducing regulatory requirements can help with these issues because they will likely impede the industry’s expansion. In addition, blockchain technologies can benefit the fintech industry by enhancing financial operations’ security and transparency.
Future of FinTech
The collaboration between fintech and the cloud has a promising and reassuring future. Cloud computing and cloud contact center operating as a Direct to Business service over the next ten years is the market solution. Collaboration and cross-pollination of ideas, expertise, and people should lead to deeper domain-oriented solutions addressing Business, Product, and Regulatory demands. Additionally, as computer power continues to increase rapidly, Next-Gen Fintech DevOps should develop into a low-tech/no-tech self-help Direct the Business operating paradigm.
Financial firms with a keen sense of technology have seen the agility potential of cloud computing and how it may help them rule their sector. By developing and providing cutting-edge products and services, establishing seamless client contacts, and increasing revenue through collaborations with related firms, cloud computing is now expanding its influence in the fintech industry. So, be careful of the size of the cloud. There are more unicorns than any other industry in the burgeoning fintech sector. Due to the vast volumes of data that need to be securely managed, saved, and analysed, fintech now needs to leverage cloud technology.