Embracing Hybrid Cloud in the FinTech Industry

By Marianne Chrisos - Last Updated on September 23, 2019
Embracing Hybrid Cloud in the FinTech Industry

Technology is a tremendously powerful force in the business world. It can help businesses better serve their customers by automating certain features to free up more time for additional customer attention, provide higher security for customer details and information, and in some cases provide better and faster access to information or services.

Hybrid cloud computing provides businesses with a software service solution that enables them to approach business more flexible and adapt to changes and meet customer needs faster.

What is hybrid cloud computing?

Apprenda, a cloud platform provider, defines hybrid cloud computing as, “an infrastructure that includes links between one cloud managed by the user (typically called “private cloud”) and at least one cloud managed by a third party (typically called “public cloud”)…The idea behind hybrid cloud is that businesses can use it to take advantage of the scalability and cost-effectiveness offered by the public cloud computing environment without exposing mission-critical applications and data to the vulnerabilities associated with the public cloud option. In addition, the hybrid cloud model creates what is often the best and most efficient solution because different types of data can be moved onto whatever platform provides the most efficient and secure environment.”

Hybrid cloud platforms can give businesses more flexibility and allow them to compete better in their industry by providing internal efficiencies and cost savings that they can pass on to their customers. These are inherently helpful to the financial services sector, which needs to make money, save clients money, and offer fast secure services. Capital One updated its technology to be cloud-based to help them better meet their customer’s changing needs and the evolving landscape of finance and banking.

The benefits of cloud computing

1. Cost-savings

Hybrid cloud platforms often offer a pay as you go model that allows you to expand as necessary but only pay for what you need. These cost savings can help financial service institutions improve their services for customers or pass those savings on to customers in other ways, like reduced rates.

2. Scalability

The pay as you go, model, as well as integrating off-site cloud storage, means that you can scale your storage and software solutions easier using hybrid cloud technology. If your business gets an influx of customers because of an excellent new product or service, you don’t have to sacrifice any of the customer experience – hybrid cloud computing offers you the immediate benefits without the downtime so you don’t experience business disruptions.

3. Customization

Hybrid cloud solutions can be customized for the needs of the financial service organization. Some regulations and guidelines prevent finance service businesses from working completely in the cloud, as this might affect security and compliance. But a hybrid cloud offers the best of both worlds that can help to satisfy regulators, investors, employees, and customers alike.

4. Disaster recovery

A data disaster can destroy any business, but especially a financial services business. Cloud computing is an easy solution for businesses who need their data to be backed up, secure, and retrievable quickly and in almost any situation.

Financial service providers are an integral part of their customers’ lives – and often their livelihood. When it comes to customers money and financial decisions, finance groups need to be aware of customer concerns and priorities. Hybrid cloud computing can help banks and financial service solutions react faster to customer needs and also offer them an enhanced service experience, including highly secure data and reduced risks. Continuing to offer innovative services and solutions that are easy and affordable – as supported by hybrid cloud computing – can be one way to retain customers long term and grow customers over time.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a c...

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