In order to keep pace with technological developments, the fintech industry is looking to cloud migration to ensure that their products and services remain future proofed for their customers.
With the volatile economic landscape rapidly re-shaping the world of banking, finance, and payments services, the world saw a big spike in companies within these sectors expanding to compete for the increased demand for flexible, reliable, cheap, and secure payments services. The overall sentiment was an uptake in preference for digital banking services from traditional and challenger banks alike. Even post-pandemic, consumer behavior and preferences are expected to evolve at an accelerated rate.
It also suggested that, in order to keep pace with competitors, banks must recognize that collaboration between payment players and cloud service providers will help drive seamless and secure digital experiences for consumers in a time where user experience is paramount. There are many positive benefits to banks and fintechs collaborating to provide the best of both worlds of traditional banking and innovative technology.
To survive and grow, businesses are turning to industry leaders beyond their own expertise to quickly pivot and adapt to their customers’ ever-changing needs. Cloud technology is one key way banks can drive digital transformation. Public and private clouds offer banks the ability to access resources on demand, rather than spending more on extra capacity. Of course, security will always be a concern for banks that are considering adopting cloud technology, but by first securing core systems, and by taking an incremental approach, it is possible for financial institutions to migrate to the cloud in a way that prioritizes data security.
Collaboration to innovate further is of extreme importance when the demand on resilient commerce through contactless interactions is key. A McKinsey report states that banks that use technology to transform customer experience saw an increase in customer satisfaction from 15% to 20%, reduced cost to service from 40% to 20%, and were able to boost conversion rates and growth by 20%.
In order to keep pace, traditional banks can leverage challenger technology to reach new markets and innovate services. Challenger banks can access a large customer base, financial expertise, and traditional systems from banking institutions. Cloud technology has the unique capability to support and catalyze growth and resilience for the industry as consumers’ demand for digital finances and on-demand personalized service increases. It is the key to future-proofing the industry.