Banking & Finance industry has been one of the very early adopters of technology since the boom began two decades ago. To complement and support the massive banking & finance industry, Fintech emerged during the turn of the millennium to bring in more efficiency, transparency & accountability in how the industry functions. Today, banks are embracing and co-opting with their Fintech disruptors to manage massive technology trends like Cloud, Mobile and Blockchain to stay afloat in a market driven by disruptive tech. And by adopting AWS for Fintech is like a match made in heaven. Plus, these banking and finance companies can accelerate their “go to market” and lower costs in a short duration.
The Context: Unbundling the Banks and Finance Companies with Fintech
To set the context here, banking and finance is quickly adopting digital transformation solutions, like all other industries. Fintech startups in particular are taking part in “unbundling of the Bank” with each startup offering only a specific selected function of the traditional banks like payments processing, remittances etc.
Above all, Fintech companies are innovating within that standalone specified service space. There are many classic cases for disruption, however, major banks are encouraging Fintech players instead of seeing them as threats by adopting strategies like acquiring the successful ones. One of the major reasons for this embracing strategy of big banks is their own technology legacy, which is holding them back from moving as fast as startups.
AWS for Fintech: Why?
Fintech startups have the advantage of building on cutting edge technologies like cloud, mobile and blockchain as they do not have any legacy systems to support. On the other hand, already established Fintech companies too are realizing the benefits of AWS cloud, due to the low capex cost associated with it, further making AWS Cloud a very attractive computing infrastructure.
If you are a IT decision maker or a DevOps professional in a Fintech company contemplating AWS cloud, then read on these top 5 reasons why you must adopt AWS Cloud:
1. One Click Regulation & Compliance
On the AWS cloud, security is of the highest priority. AWS users can benefit from the data center and network architecture built to meet the requirements of the most security-sensitive organizations. AWS cloud compliance enables customers to understand the robust controls in place. Additionally to maintain security and data protection in the cloud, AWS provides cloud formation templates which have standard three-tier web architecture for PCI DSS on AWS depicting integration with multiple VPCs.
Using the AWS cloud formation tool, you can deploy the secure architecture with a click of button. While AWS manages security of the cloud infrastructure, the security of the apps on it however is your responsibility. You can retain control of what security to implement, in order to protect the content, platform, applications, systems and networks.
Above all, you can create virtual banking platforms that meet payment card industry (PCI) data security standard (DSS) compliance by leveraging architectures from AWS cloud compliance. AWS can automate processes that once took months to complete and lets you to focus on core value proposition and customer service rather than managing the IT infrastructure.
2. Seamless and Safe Transaction Data Backups
Banking and finance industry is all about transactions. The transactional data, which are generated through the transactions have to be archived and saved securely for future retrieval. The database of the transactions has to be stored complying the disaster recovery regulations at different geographical zones. Moreover, processes should be established to ensure that recovery will be accomplished within a short duration, if at all there is any disruption. With AWS’ strong Disaster Recovery (DR) policies, it is piece of cake.
In addition, highly secure and fault tolerant backups and DR is one of the major use cases for cloud platforms like AWS. As a Fintech co., you need not worry about the long procurement and provisioning cycles of data centers for Backup. Further, AWS provides huge savings for Fintechs just in Information Security Compliance use case.
3. Performance and scaling
Most of the Fintech companies are consumer facing i.e B2C startups. You must be already aware that the usage patterns of the applications will face many spikes and bursts. To cater to such needs, AWS provides auto-scaling feature, which ensures consistent performance even during those surge periods. It can automatically increase the number of Amazon EC2 instances during demand spikes to maintain performance and decrease capacity during lulls to reduce costs. Auto scaling is ideal for applications that have stable demand patterns or that experience hourly, daily, or weekly variability in usage. Moreover, the auto scaling feature is one of the best AWS Cost Optimization feature, which helps you save more as you scale.
4. 24 x 7 x 365 Availability
With the democratization of mobile phones, it is evident that Fintech companies’ services have to be available 24 x 7 x 365, just to ensure that customers can access services anywhere, anytime. AWS auto scaling can help Fintech companies to maintain application availability while also allow them to scale the AWS EC2 capacity up or down automatically according to customer usage patterns. However, by leveraging auto scaling, Fintech companies can ensure that their apps are running on optimal number of AWS EC2 instances, resulting in effective AWS Cloud Management. Ultimately, AWS ensures Fintech companies’ services are available 24 x 7 x 365.
5. Supporting DevOps Culture
Rapid rollout of new features is one of the key value propositions for Fintech companies. Could not agree more? And to achieve rapid roll-outs, Fintech companies have to embrace DevOps processes. AWS provides built in support for DevOps by providing ready-to-use complete tool chain. This AWS DevOps tool chain consists of AWS code commit for hosting a private git for their code base, AWS code pipeline Continuous delivery service to automatically build, test etc. and AWS CodeDeploy for automating the code deployment to any EC2 Instance.
AWS for FinTech: Made for each other
With such impeccable capabilities along with entire software development life cycle support from development to deployment, AWS is definitely a perfect match for Fintech companies to stride through the path of digital transformation.
If you are an IT decision maker or a DevOps professional in a Fintech company that is already on AWS, then you might as well explore Botmetric, the only cloud management platform that simplify day-to-day cloud operations while also help with other AWS Cloud Cost optimization, performance monitoring tasks, etc. To know how Botmetric facilitates with automated backups, DR, etc. then try the 14-day trial today. Do share your thoughts with us on Twitter, Facebook or LinkedIn.