{"id":72789,"date":"2019-09-06T10:15:01","date_gmt":"2019-09-06T10:15:01","guid":{"rendered":"https:\/\/www.whizlabs.com\/blog\/?p=72789"},"modified":"2019-09-06T10:15:01","modified_gmt":"2019-09-06T10:15:01","slug":"cloud-computing-quiet-catalyst-for-fintech-revolution","status":"publish","type":"post","link":"https:\/\/www.whizlabs.com\/blog\/cloud-computing-quiet-catalyst-for-fintech-revolution\/","title":{"rendered":"Cloud Computing: The Quiet Catalyst for the Fintech Revolution"},"content":{"rendered":"

Cloud computing<\/a> is the unsung hero of the ongoing financial technology boom. While other factors often take the spotlight, Fintech would be nothing without the cloud.\u00a0<\/span><\/p>\n

The Great Recession<\/span><\/a> 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.<\/span><\/p>\n

Another driver of the current fintech revolution is bottomless venture capital. According to statistics provided by <\/span>Fortunly<\/a><\/span>, there are currently 39 Fintech unicorns valued at $1 billion or more.<\/span><\/p>\n

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.\u00a0<\/span><\/p>\n

The collaboration between tech startups and established industry players has resulted in \u201cfintegration,\u201d which has brought obsolete financial systems up to date.<\/span><\/p>\n

Fintech companies earned the validation they sought, the banks averted further losses of revenue, and the consumers reaped all of the benefits. Everybody wins.<\/span><\/p>\n

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\u2019s fintech innovators to thrive.<\/span><\/p>\n

A Brief History of Cloud Computing<\/h2>\n

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 \u201ctime-sharing\u201d theory.<\/span><\/p>\n

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.<\/span><\/p>\n

Before the decade ended, the idea inspired the development of the<\/span> Advanced Research Projects Agency Network (ARPANET)<\/span><\/a>. The precursor of the Internet, ARPANET was the first network that proved digital files could be shared among computers in separate locations.<\/span><\/p>\n

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.<\/span><\/p>\n

Fast-forward to the 21st century. Cloud computing is now considered to be an indispensable ingredient for<\/span> the Fourth Industrial Revolution<\/span><\/a>. Fintech companies utilize the cloud to innovate, implementing a host of emerging technologies and practices, such as artificial intelligence and data analytics.<\/span><\/p>\n

Innovation isn\u2019t easy. Cloud computing can help cut the challenges down to size. Below are a few fintech pain points that the cloud has addressed.<\/span><\/p>\n