Technology is in the air, or to be more precise in the Cloud. Literally, Cloud technology is the in thing in all types of business transaction and more essentially it is seen in the finance and money lending industry.
Over the years, private Clouds have made a permanent place in the IT enterprise and have been helping this specific segment of business by a great deal such as:
- By providing cost benefits
- Economies of scale and
- A better return on investment that are usually associated with public clouds..
However, Cloud technology is required to be used in the right manner to enjoy its inherent benefits.
Modern customers are now more tech savvy and are looking for best ways in which they can leverage the Cloud to deal with their complex workloads.
Effects in digital lending
However, in some cases where high levels of security is required along with compliance with the rules and standards, private Cloud models are often found lacking. Today, digital lending has become one of the most significant online lending platforms and you will find a lot of such online money lending sources such as Liberty Lending and others that has made borrowing money much easier and safer.
- Most of the borrowers and money lenders alike are making the best use of this platform which works in the absence of any intermediary such as a traditional bank.
- Today, banks and most of the financial institutions use private Clouds though they necessarily have to turn towards external Clouds as well to make sure that they take the full advantages of all the benefits that are associated with it.
When it comes to specific workloads such as alliance required leveraging public Clouds, this technology provides the banks, financial institutions and credit unions with an OPEX model.
If you consider the South East Asian regions, such type of working model and Cloud technology has helped a lot when it comes to money lending. This is the specific region where you will find a bigger chunk of rural areas that are unbanked completely.
This is especially found in the less developed ASEAN countries that include:
- Myanmar and
- The Philippines.
However, if you look into the scenario deeply, you will find that the traditional banking industry is making inroads in this specific segment of the market slowly but surely. This is solely because technology is quickly catching up with the services provided by these financial institutions.
On the other hand, if you consider the financial organizations, they are working hard on different areas of finance as well just to ensure that the customers are well served and satisfied. They provide the customers in a diverse range of areas that include:
- Managing and taking care of their wealth management
- Banking services and transactions and
- Capital market and its management.
This technology has specifically helped the consumers in making all of their e-commerce transactions. These transactions now are made specifically on the mobile devices of any types from anywhere in the world and whenever they want.
Complete control of funds and market
Now only the traditional banks and financial organizations, the Cloud technology has also helped the customers, the banking industry as well as the market on the whole.
- When it comes to the customers, today they want to have a complete and a better control over their funds. This Cloud technology has been especially helpful for them when they want to see their money growing by making investments with reliable and effective financial services.
- The banking industry on the other hand, is also coming to terms fast with the even growing need and digital reality. This has enabled them to provide better services to their consumers as desired who are embracing this new trend of digital banking either through their computers or through their handheld devices such as smart phones.
Lastly, when the market it concerned, it is found through different survey findings that:
- There is a growth in emerging Asian markets at a much faster rate than expected in terms of the smart phones penetrating the banking sector.
- It is also found that when compared with digital banking overall, mobile banking has jumped up to two to five folds.
- In addition to that, the phenomenal and stupendous growth of digital banking has also resulted in the advent of a few disruptive trends.
Truly, you can now see a decline in the relevance of the physical bank branches. There is an ever increasing threat experienced by the digital players that are observed to be capturing a substantial share of the finance market.
Growth in customer engagement
The rise and use of Cloud technology has also had a positive effect on the customer engagement level as well. According to a report published by Mckinsey & Company it is found that when it comes to the digital banking race all over the world, there has been a significant amount of growth. The report compares the digital lending market scenario of different parts of the world and has come up with facts and findings on the customer engagement rate such as:
- On an average there has been a rise of 12.7% to 14.9% in customer engagement transaction overall in the developed Asian countries and
- As for the emerging Asian countries this rise is recorded at 8.1 from its last 6.0 mark.
These facts and findings signify that there has been a significant increase in the usage of smart phone devices by the customers all over the world just to access the internet to find better financial products or to make any financial transaction.
Rise of new age fintech services
Another significant factor noticed as a result of the use of Cloud technology is the ever growing number of the new age fintech companies. They have also started to venture out from those traditional transactions and payments of before and have come up with better and more innovative offerings in specific areas such as lending and investments that were considered to be the sole privilege of the traditional banks.
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