siliconindia | | APRIL 202319 Enhanced Developer Productivity & EfficiencyWith cloud-native application development, developers spend less time on infrastructure provisioning and production support. This allows them to focus on business requirements and application development. It allows developers to work on new applications without disrupting core services and revenue-generating applications. To put things into perspective, practical cloud usage enables developers to improve development and maintenance productivity by 38 percent. It improves efficiency by reducing manual efforts through API-based models, standardization, and automation, enabling developers to focus on their core tasks. Lower Security Risks & DowntimeCloud helps fintech improve platform integrity through automated, embedded security processes and controls (such as DevSecOps), which reduces instances of cybersecurity breaches and attacks. A resilient architecture also helps minimize downtime, enabling fintech to minimize financial and reputational loss. Innovative Business Models The access to unlimited infrastructure capacity, computa-tional power, and innovative tools enables fintech to test new business models and services at a lower cost and more incredible speed. The ability to easily configure cloud solu-tions allows fintech to keep pace with the evolving regula-tory landscape and competitive business environment. Rapid Business ScalingTo quote data from a Mckinsey report, in the case of Fortune 500 financial institutions, following Fintech to leverage cost-optimization levers and business use cases unlocked by the cloud can generate as much as $60 billion to $80 billion in run-rate EBITDA in 2030. This indicates how effective a cloud approach for business can be from the perspective of a broader set of customer segments, geographies, and channels by leveraging cloud providers' infrastructure and global presence.Planning & Implementing Cloud Solutions for Loan servicingThe credit and lending model is often treated as the orphaned child in the Fintech domain, with limited enablers working in the sector. However, loan serving can greatly benefit from a cloud-first approach, and this is exactly how.The ProcessLoan servicing refers to managing a loan from when the proceeds are dispersed to the borrower until the borrower repays the loan. The process includes collecting periodic payments and passing the right amounts to financial institutions, tax authorities, and other entities. Loan servicing was traditionally a core function held within financial institutions but now has the potential of being an industry that includes third-party servicing companies, loan-originating banks, and financial institutions.
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