Cloud computing is the unsung hero of the ongoing financial technology boom. While other factors often take the spotlight, Fintech would be nothing without the cloud.
The Great Recession is usually credited for changing the spin of the financial world order. Considered the most devastating economic disaster since the 1930s, it led to the massive distrust of the traditional banking system, particularly in the United States, where it began.
Another driver of the current fintech revolution is bottomless venture capital. According to statistics provided by Fortunly, there are currently 39 Fintech unicorns valued at $1 billion or more.
At first, the incumbents of the financial services industry considered the entry of disruptors into the markets a hostile intrusion. Over time, however, traditional bankers accepted the fact that fintech companies are here to stay, and they are better friends than foes.
The collaboration between tech startups and established industry players has resulted in “fintegration,” which has brought obsolete financial systems up to date.
Fintech companies earned the validation they sought, the banks averted further losses of revenue, and the consumers reaped all of the benefits. Everybody wins.
Although venture capitalists and traditional bankers frequently get praised for playing ball, the pioneers of cloud technology have been creating the ideal environment for decades, which allows today’s fintech innovators to thrive.
A Brief History of Cloud Computing
Cloud computing can be traced back to the 1950s. At a time when computers were considered a luxury even to businesses, maximizing computing time was high on the agenda of John McCarthy, the creator of the “time-sharing” theory.
In the mid-1960s, the concept of an interconnected computer system was conceived by Joseph Carl Robnett Licklider, an American computer scientist. He envisioned a world where people would be connected and be able to access data and programs regardless of their access point location.
Before the decade ended, the idea inspired the development of the Advanced Research Projects Agency Network (ARPANET). The precursor of the Internet, ARPANET was the first network that proved digital files could be shared among computers in separate locations.
As technology advanced over the following decades, the need for true cloud computing heightened. By the mid-1990s, it became a vital asset for many organizations.
Fast-forward to the 21st century. Cloud computing is now considered to be an indispensable ingredient for the Fourth Industrial Revolution. Fintech companies utilize the cloud to innovate, implementing a host of emerging technologies and practices, such as artificial intelligence and data analytics.
Innovation isn’t easy. Cloud computing can help cut the challenges down to size. Below are a few fintech pain points that the cloud has addressed.
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Limited Capital
While the floodgates of venture capital are open for fintech companies, most of them are vulnerable to negative cash flow. Actually, it is not uncommon for these upstart firms to spend for many years before becoming profitable — or breaking even.
Cloud computing allows fintech startups to keep their overhead to a minimum without stunting their growth. Despite operating in a purely digital space, these companies have been able to store, manage, and analyze mountains of data without investing in expensive hardware, moving to a huge office, and keeping an army of staffers on payroll.
In fact, even the most valued fintech unicorns today employ no more than 1,600 individuals. Remittance giant Stripe is an employer to about 1,500 people while the peer-to-peer lending behemoth, SoFi has less than 1,400 employees.
Unlike other businesses, fintech companies aim to serve customers by the millions (if not billions.) They treat cloud computing not as an alternative to physical computers, but rather as the standard.
The massive computing power of highly optimized data centers allow for increased efficiency and greater productivity. Today’s fintech startups achieve more with less time and money by using trusted cloud computing solutions.
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Severe Talent Shortage
It is hard enough to find qualified fintech professionals, but the challenge becomes even greater when geographical constraints are a factor.
The cloud is all about borderless and seamless collaboration. It allows fintech founders to tap the global talent pool, put together excellent teams for certain projects, and fill key roles with competent candidates. And, they are able to do all of that in different time zones without offshoring or outsourcing.
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Cumbersome Scalability
In the fintech realm, scalability is the name of the game. Market demand can move sharply and frequently. So, it’s imperative for a tech company to have the ability to scale up or down its information technology infrastructure. They should do so in order to meet ever-changing business requirements.
Fintech companies enjoy a variety of service models, such as Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS), to offer more options and flexibility.
These choices help address core concerns such as round-the-clock uptime, interoperability, storage security, and others without having to dish out a significant investment and drain limited capital resources.
Cloud computing companies help level the playing field for fintech startups seeking to match bigger and more established rivals. They allow these startups to compete with companies with massive IT infrastructures.
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Constant Data Protection
It goes without saying that data privacy in cloud environments is a chief concern for the fintech sector.
You have a right to expect tech companies to keep your private information private. They are proud custodians of your sensitive personal, banking, and/or credit information. And they must live up to their promises at all times.
The cutting-edge data management available today is more relevant than ever given the meteoric rise of big data. Reliable cloud computing solutions not only help fintech companies handle the deluge of information coming into their systems, but they also add an exponentially stronger layer of security into the equation.
The threat of data breaches never goes away. And tech behemoths behind today’s name-brand cloud computing platforms and services do not stop evolving. Names such as Microsoft Azure, Google Cloud, Amazon Web Services, and Alibaba Cloud, work to stay ahead of all breeds of hackers across the globe in order to successfully avert cyberattacks.
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Tricky Regulation Compliance
Regulatory change is driving rapid cloud migration in the financial services industry. Between 2008 and 2015, policymakers worked hard to prevent a repeat of the last decade’s financial crisis. And throughout the period, the annual volume of regulation improvements increased by 492%.
Cloud computing is one of the key innovations that make up the field of regtech (regulatory technology). Fintech startups are wary of the unprecedented scale of regulatory change. And they understand the hefty fines they may face due to noncompliance, inadvertent or not.
Migrating sensitive information to cloud environments is a surefire way to protect your data. While constantly monitoring new policies, you will be able to adopt improved transactional standards.
As the world continues to cross the digital divide at an accelerated rate, the unremitting mass adoption of fintech has allowed the role of cloud technology in this transition to only grow stronger.
Sooner rather than later, the industry’s legacy-network infrastructures will be ancient history. Everything will be on the cloud. Public, private, or hybrid. It will all be there once the digital transformation is completed.
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Negative Customer Sentiment
The benefits of cloud computing help achieve the ultimate fintech goal: absolute client satisfaction.
Consumers in the 21st century expect no less than instant service and immediate remedies to solve their problems. Sluggish apps have no place in the current financial landscape where stellar user experience is king.
Partnering with the right cloud computing service provider sends a strong message. Running a fintech venture on a platform developed by Microsoft, Google, Amazon, Salesforce, or Alibaba, is a marketing tool in itself. People feel less confident in sharing their private data with startups that use cloud-based solutions they do not know or trust.
Why Start a Career in Cloud Computing?
Penetrating the cloud industry is a fulfilling endeavor. And it’s never been easier to do so. With so many high-quality cloud computing courses available at your disposal, it isn’t hard to develop the necessary skills needed to beef up your credentials and get shortlisted for an interview.
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Guaranteed Job Security
Job security is the main reason you should consider a career as a cloud professional.
The cloud is the future, and the future is here. The majority of businesses today already rely on cloud-based services in one way or another, and the rest is going to follow suit eventually. Small and medium-sized financial institutions are great examples.
The tech giants behind the most sought-after cloud platforms are the most valuable brands in the world. They are too big to fail and are constantly in search of top talent to join their teams.
And, interesting growth in the industry ensures that demand will remain high for years to come.
If you strive to be a high-value talent in the field of cloud computing, you will never run out of attractive job offers. Whether you want to move up the corporate ladder internally or find greener pastures, with the proper education and experience, you will be sure to remain an asset to any cloud company.
Must Read: Top Cloud Computing Trends
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Rising Pay
The salaries of cloud experts have been soaring for years. In 2018, the median annual income of cloud computing professionals was reported to be $146,350. In the past two years, it increased by $22,050. The rosy outlook of the industry suggests that the wages of cloud pros are not going to stagnate, let alone decrease, in the run long.
In fact, cloud computing tops our list of high-income skills in 2019. If you are entering the field for the first time, pursuing the right certification can help you command an attractive pay early on.
Getting certified is an effective way to differentiate yourself from your peers. It accentuates your competence, which is an influential factor when justifying your expected salary. Being highly proficient in one or several cloud platforms can save your employer a ton of money. And you are likely to be adequately compensated for the value you bring to the table.
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Unquestionable Prestige
Much like in fintech and other corners of the tech landscape, joining the cloud industry is tantamount to making history. You will get to be one of the select individuals on the planet who can actively contribute to the Fourth Industrial Revolution and change societies for the better for posterity.
It does not matter if you have your office in Silicon Valley or Estonia, or if your cloud ecosystem is based in China or Singapore, the sense of pride that comes with this occupation is universal. Not all could say that they are a co-architect of the new financial world order.
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Never-Ending Excitement
Cloud computing may have been around for decades, but the full extent of its potential still seems far from realized. The industry continues to tirelessly reinvent itself by integrating emerging technologies into its existing systems.
As a cloud professional, you will be at the forefront of the latest advancements in the industry. You will be in the know when novel concepts are being tested to suit new applications. The dynamic cloud landscape challenges the mind and excites the soul of the tech-driven.
Final Words
The field of cloud computing is one of the biggest beneficiaries of the fintech revolution. It helps fuel the exponential increase of demand for cloud computing expertise, which is expected to continue in the foreseeable future.
Fintech companies have digitized the global financial system. In turn, it has reinforced the legitimacy of cloud-based solutions and platforms.
These trends attest that careers in cloud computing are worth considering. With more than 100,000 available positions worldwide and sky-high salaries, cloud developers, cloud business analysts, cloud network engineers, and cloud architects, among other professionals, have endless opportunities and room to grow.
Invest in your future now. Take up a life-changing course, get certified, test the market to gain a foothold in the industry, and start a promising career as a cloud professional.
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