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Community Blog Cloud Computing Accelerates the Change of Financial Technology

Cloud Computing Accelerates the Change of Financial Technology

In this short article, we'll introduce how Cloud Computing is promoting the development of the Fintech Industry from 6 points.

By Raymond Ma, General Manager of Europe and A/NZ, Alibaba Cloud Intelligence

During the pandemic, the use of cloud computing and its related technologies (Big Data, AI, Blockchain etc.) became much more widespread, which in turn accelerated the speed of digital transformation of various industries. As an industry heavily dependent on the innovation of new technologies, the popularization of Cloud Computing and its related technologies within the financial industry have helped drive the compound annual growth rate by 23.84%. This new development has become one of the highlights of the post-pandemic era.

In what ways will Cloud Computing promote the development of the Fintech Industry? Here are some key insights:

1. Increased innovation of data management mechanisms.

Fintech itself is a highly data-centric industry. The introduction of cloud computing and related technologies enhances the ability to collect, transmit, store, and analyze massive amounts of distributed data. This in turn significantly decreases the time and resources required to sort through these processes, and making it possible to process distributed, large volume transactions and analytical tasks in real-time.

2. Increased flexibility in the capabilities for innovation.

Cloud computing and its related technologies have greatly supported the development of OpenData and OpenBanking, leading to innovation within the financial services sector becoming a norm. For example, the emergence of many electronic wallet options and businesses for small-sized loans in developing countries, or emergence of new payment methods, development of Buy Now Pay Later businesses in developed countries are all directly related to the widespread use of cloud computing and its related services (e.g. AML)

3. Increased security for financial transactions.

A major feature of cloud computing is its security, which can prevent DDoS attacks, SQL injection, bot attacks, and deal with numerous other security risks. Through cloud computing, security risks can be dealt with swiftly and any necessary optimization measures can also be implemented quickly. This feature is imperative for the Fintech industry, and resolves the issues of insufficient security measures related to self-managed data centers. For example, Alibaba Cloud provides 24-hour uninterrupted Anti-DDoS attack services for many FOREX customers, which helps to save customers a lot in traffic related costs.

4. Increased convenience of financial services.

The use of e-wallets surged by a stunning 83% during the pandemic. This is just an example of how Fintech can offer more convenient service. These capabilities can only be deployed in a cloud computing environment. Simultaneously, in a post-pandemic era, as international travel has been recovering to normal levels, travelers have become accustomed to using online cross boarder financial products and services as these services save travelers the trouble of currency exchange and carrying cash. These services wouldn’t be possible without the infrastructural support of cloud computing.

5. Increased reliability for operation and maintenance.

Cloud computing has transformed the traditional IT operation and maintenance model by making it simpler and more flexible. By deploying cloud computing monitoring and intelligent diagnosis services, operational and maintenance costs and be greatly reduced, allowing customers to achieve higher levels of reliability in their operational and maintenance capabilities.

6. Integration with the Metaverse and WEB3.

Fintech is highly intertwined with the the rise of the Metaverse and WEB3. Through the deployment of cloud computing technologies, VR/AR, Blockchain and other technologies, the Metaverse is able to actualize transactions and experiences similar to that of the real world. Fintech can adapt the same technologies to serve the Metaverse. For example, the transactions and actualization of high-value IPs within the Metaverse etc. This opens us up to a Trillion-dollar emerging market.

In the face of such an attractive technological dividend, the Fintech industry is embracing cloud computing and its related technologies in an unprecedented rate. At the same time, however, capacity building in the following areas also needs to be improved:

1. Building up compliance capabilities

The financial services sector has always been strictly regulated. With the rise of cloud computing, Fintech has also been required to comply with industry norms in order to have a chance at profiting from above mentioned technological dividends. In adopting cloud computing technologies, one must pay attention to regulations and requirements such as ISO27001: Information Security Management System certification, ISO22301: Business Continuity Management System certification, PCI: DSS and other industry compliance regulations.

2. Building up multi-cloud capabilities

Like when does investing, when using cloud computing to support the operations of one’s business, one must not put all their eggs in one basket. Building multi-cloud capabilities allows businesses to increase their stability and achieve the best ROI. For example, a business can put their main operating system on one cloud and put their back-ups and research on another cloud. Businesses can use the differing capabilities of different cloud providers to their advantage and maximize the ROI on their IT investment.

3. Building automated operations and maintenance

Cloud computing is a highly automated platform. While using such a platform business, it is necessary to build quickly automated operational, maintenance, and monitoring capabilities. This ensures that your business can benefit from the automatic management of the system (such as automatic elastic scaling, automatic matching of optimal computing resources and prices, etc.).

With the arrival of a post-pandemic new normal, the Fintech industry with inevitably enter into a stage of rapid development with the help of cloud computing and its related technologies. As a top cloud computing service provider, which has served the Fintech industry for many years, Alibaba Cloud provides cloud computing technologies on a global scale for Fintech companies in the regions with booming financial services sector like Asia, Europe, and Oceania. Alibaba Cloud’s innovative technologies and top-class service is here to help the global Fintech industry take off!

About the Author

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After graduating from Northwestern Polytechnical University in China with a Master degree of Computer Science, Raymond Ma began his career at IBM, where he spent the following ten years working across the IBM IT consulting to IBM software product management.

Raymond joined Alibaba Cloud in 2014. He was appointed as the General Manager of Alibaba Cloud ASEAN in 2015. In this role he specialized in providing cloud and data analytic services to the ASEAN markets. In 2016, Raymond was appointed General Manager Alibaba Cloud ASEAN and ANZ. The expanded remit sees Raymond heavily invested in varied levels of Australian and New Zealand businesses working alongside startups, SMEs, corporations and public sector organizations to demonstrate the many capabilities Alibaba Cloud can deliver. He is currently General Manager of Europe and ANZ for Alibaba Cloud Intelligence.Raymond got his MBA degree from Vlerick Business School.

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