Phillip Liu, GM at Alibaba Cloud Intelligence for the MENA region, recently commented on what’s required for regional Fintech firms to succeed in an increasingly competitive global environment.
Fintech platforms are beginning to transform the traditional financial services sector. Fintech companies have developed solutions to streamline existing business processes and are now challenging or even replacing traditional products and services.
Liu confirms that the Fintech industry is experiencing a period of rapid growth that has led to the development of various digital payment solutions and online lending platforms.
Millions of consumers throughout the world are now able to access digital financial services in a quick and efficient manner. Liu explains that these services might be quite useful in emerging markets, where traditional financial services have not been able to reach many people. According to Liu, many unbanked and financially underserved consumers may find Fintech services more convenient and accessible than traditional products and services.
But he points out that the Fintech sector still has many challenges it needs to overcome. For instance, many Fintech platforms have not been able to keep up with the growing user demand and the new regulations within the financial services industry. That’s why Fintech businesses need to look into deploying and maintaining scalable, secure, and cost-effective IT infrastructure – which will allow them to serve the needs of customers while ensuring compliance, Liu recommends.
He further noted that the main driver of the growth of successful Fintech businesses is prioritizing and focusing on creating customer-centric services. He explains that in the current fast-paced environment, consumers are increasingly looking for instant response times when conducting transactions online. Liu points out that this is particularly true when it comes to consumer-facing Fintechs that mostly interact with their customers in an online or all-digital environment.
Fintech firms must be able to handle transactions instantly in order to keep their customers happy, Liu notes. He adds that these requirements make it necessary for financial tech firms to maintain low-latency and dependable IT and financial infrastructure.
Fintech firms may benefit from outsourcing or delegating their operations and management-related tasks to cloud computing providers like Alibaba Cloud. Liu explains that Fintechs need to only pay for the services they actually use, and need not be concerned about having to maintain the hardware or hiring qualified staff to do so.
Liu claims that Fintech firms are able to focus on their core business because they don’t have to deal with costly and time-consuming infrastructure maintenance and other requirements.
As covered recently, Nasdaq CEO Adena Friedman says COVID-19 is “fundamentally accelerating” the adoption of Fintech and Software as a Service Solutions (which includes Cloud technologies).
Friedman also confirmed recently that Nasdaq, the world’s second largest stock exchange, will be embarking on a Cloud-centric strategy.
As reported in October 2020, Accenture plans to invest $3 billion into Fintech Initiatives that will help companies become Cloud-first businesses.