The fintech industry is rising rapidly and fintech firms have raised more than $25 billion in global investment in the first half of 2020, considering the immense uncertainty created by COVID-19. It is important to note that the success of these businesses is dependent on the ability to use data effectively to provide their customers with a personalized experience as fintech and their consumer base grow.
They must ensure that they have the capacity to scale up their operations and data storage as quickly and cost-effectively as possible, particularly in these difficult times to ensure that these businesses do not become victims of their own success.
And what do fintech businesses have to do if they are to promote this development without bursting at the seams?
Big fish in a small pond
Fintech companies are rising rapidly, and even the current confusion surrounding the pandemic has not slowed their rate of growth for many. However, having begun tiny, at the beginning of their journey, with only access to restricted tools, many fintech companies can not keep up with their own rapid growth. They face a real risk of being a huge fish in a small pond when it comes to data infrastructure.
Fintech companies need the necessary playground space to innovate to achieve widespread innovation and to sustain their advantage over conventional financial institutions.
As the pandemic began to take hold and its consequent disturbances, most corporations were not prepared for the types of threats they would have to face.
While the suggestion of investing in data infrastructure may sound counterintuitive at the moment, flexibility and the ability to scale would be a lifeline for fintech companies going forward.
Fintech firms, like other sectors, find it hard to commit to long-term growth plans as the confusion around the pandemic persists. Despite their continued growth, during an unstable economic climate, fintech companies continue to be cautious in investing in expanding their operations, especially when they are doing well enough.
Fintech firms exhibited slower rates of digitalization adoption and advanced IT infrastructures than other sectors right before the pandemic. The future is clearly digital, and for fintech to succeed successfully in today’s competitive market, they need to be proactive and invest in data value and digital transformation.
Their IT infrastructure, especially their data storage and connectivity, is one area in which fintech companies need to be proactive to enable them to act faster than large, existing competitors.
These businesses would have to constantly scale up their operations to manage increased demand because of the continuous growth of fintech companies, with no indication of slowing down.
This will usually have very high costs since their IT infrastructure and solutions would have to be updated constantly.
Data is a key factor for Fintechs when it comes to versatility. Businesses store masses of data in today’s world, and the volume of data is increasing exponentially.
This makes it a juggling act to store the data, and the expenses continue to rise with it. This constant rise in data can easily turn into a problem in times of economic instability, such as the one we are experiencing now. Fintechs should also ensure that scalability is at the root of all they do.
However, the main factor when it comes to scalability is not just development or the ability to scale up. Scaling down, when needed, is a critical yet often overlooked opportunity in scalability.
For both their data and power needs, hyper-scale data centers provide enterprises with a one-stop-shop.
These centers, which are designed in a campus-style design, allow businesses to easily construct additional data centers in the same area or downsize if necessary.
The answer is hyperscale
Hyperscale allows the scalability of data and storage rapidly in a world of ever-fluctuating demand. This poses many advantages.
The sheer size of these facilities facilitates cloud deployment on a wide scale, which is more streamlined, scalable, and cost-effective than ever before.
This will allow Fintechs to control their data better and reduce costs as much as possible.
Companies can function as an elastic band with this level of scalability, expanding or retracting as necessary and at a moment’s notice. For instance, imagine Christmas this year.
The online behavior of people would be much higher than in previous years with the uncertainty of the pandemic and continuously changing restrictions.
Fintechs would need to scale up their activities to meet the high demand for online services. Meanwhile, it may be helpful to scale back and minimize costs before demand increases again as demand goes down in January.
As the economy looks to rebound from the pandemic, Hyperscale would also assist fintech companies in future-proofing their operations, which has become a crucial concern.
Businesses will still have the capacity to lean or extend by providing the amount of versatility that hyper-scale offers. Without extra costs, being able to adapt rapidly within the hyperscale world allows Fintechs more agile and versatile to disruption.
Although reducing costs in today’s business climate will continue to be a priority, fintech companies must look beyond this and concentrate on innovation and technology.
The problems that the pandemic revealed still existed and had to be solved by corporations. They must also take the current situation as an opportunity to rethink their business models and develop them.
In this new age, versatility, scalability, and cost-efficiency must be top priorities. This trinity of performance can be given by Hyperscale.