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The Google Cloud Edge in FinTech and Payments

June 12, 2023

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The rapidly changing payments landscape and the unprecedented global pandemic accelerated the need for FinTechs and payments companies to scale and roll out new features, products, and services. Here’s a look at how Google Cloud can give organizations an edge.

The cloud is no longer the distant future of FinTech and payments infrastructure; it has arrived. Global spending on cloud infrastructure increased by $10 billion in the first quarter of 2023 compared to the first quarter of 2022, totaling $63.7 billion, owing to its obvious benefits of scalability and flexibility, cost efficiency, enhanced security, business continuity and disaster recovery, collaboration and remote work, innovation and time-to-market, data analytics and insights, and, of course, regulatory compliance.

Sky is the Limit

It goes unsaid that organizations without a roadmap for digital transformation or modernization risk irreparably falling behind. Therefore, it’s crucial to develop a strategic roadmap that aligns digital transformation initiatives with their business goals, identifies the necessary technologies, outlines implementation plans, and ensures proper change management.

Google Cloud has proven to be a great ally for FinTechs undergoing digital transformation. By providing simple and intuitive cloud solutions to these disruptive organizations that need an edge to quickly respond to a dynamic payments landscape, Google Cloud has eased the transition to digital today. With a 10 percent market share, Google is the perfect data solutions partner for financial institutions that have embarked on the journey of digitalization.

The Disruptors Have Been Disrupted

As FinTech and payment companies join the rest of the workforce in going permanently remote, the ability to enable remote work capabilities for employees and cost-effectively scale IT infrastructure is paramount. Cloud technologies facilitate the secure scaling of infrastructure and enable additional analytics capabilities. With business continuity as a priority, a reliable modernized IT infrastructure that enables increased business agility and reduced operational risk is a necessity.

The cloud can also allow fintech and payments companies to access and leverage emerging technologies like artificial intelligence (AI), which can play a role in online support, KYC, AML, and fraud prevention. Even as some organizations still run mission-critical workloads on mainframe architecture, hybrid cloud environments can help unlock additional flexibility and resilience. Managed tools like Google’s Anthos can help organizations create a multi-cloud environment.

Projections indicate that by 2031, the global market for data analytics in banking is expected to reach $28.11 billion, as compared to $4.93 billion in 2021, exhibiting a compound annual growth rate (CAGR) of 19.4% from 2022 to 2031. This is due to the fact that financial services companies now process large amounts of data to roll out innovative products and services that meet evolving customer expectations. This is especially important for FinTechs and payments companies challenging the status quo and disrupting payments. And Google Cloud has proven itself to be their best option in this mission.

How Google Cloud is Helping FinTechs and Payment Companies Thrive

Google and FinTechs have a lot in common. For starters, they are both natural disruptors and seek to change the way people think about technology’s role in their lives. As innovators and market disruptors, they are adept at putting the consumer at the center of everything and building solutions around the consumer’s needs and preferences.

Google is now focused on helping FinTechs thrive and is actively building out a fintech community. In this way, Google is able to fully understand the challenges these organizations face and react quickly to provide solutions that help propel FinTechs forward. This includes releasing best practices, delivering user enhancements, driving product changes, and advising.

Google’s widespread network of partners enables FinTechs to build relationships within all segments of the economy. Fintech engineers can connect with Google teams to obtain new perspectives, opinions and experiences. Tapping into these experienced partners allows FinTechs to access help in solving complex problems.

The ability to quickly scale an environment on demand and with zero downtime is necessary to support growth and innovation. On-premise-hosted data centers simply lack the responsiveness to allow FinTechs and payments companies to compete on a broad scale. Migrating to the cloud or building a hybrid cloud environment is exactly the type of resilient architecture needed to maintain pace with customer preferences, emerging technology, and innovation.

Resilience, Security, Scalability, and Innovation

A trend that had gained significant momentum prior to the global pandemic has now accelerated at a lightning-fast pace: digital payments. Nearly everything — from buying coffee to getting a ride to work — can be paid for digitally, without cash or a physical card. With a CAGR of 11.80%, the total value of digital payment transactions is projected to reach US$14.78 trillion by 2027, as compared to US$9.46 trillion in 2023.

If the Covid-19 factor lit the fire of digital payments, convenience was the lighter fluid to the trend. In addition to the desire for frictionless payments, consumers and businesses are looking for contactless ways to pay. Fintechs and payments companies that are ill-equipped to adapt to rapidly changing consumer needs are turning to the cloud to facilitate fast scaling, resilience, and the ability to quickly deliver innovative products and services.

To deliver frictionless, innovative digital payment options, payment service providers must embrace the agile infrastructure provided by cloud computing solutions. There are several big players in this space, and FinTechs and payments companies are increasingly relying on cloud services to deliver seamless, invisible payments to the masses.

Contact us to explore how Google Cloud can empower your FinTech or payments company.

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