FinTech and Lending Industry Modernization
The emergence of FinTech – companies that digitally provision financial services – and its growing customer base has had a drastic impact on the way that lending services are consumed and administered today. What Inc. calls the “alternative lending industry,” or online business lenders, is a business it says has “doubled every year”. Major disruption is taking place as a result in an industry that historically has had a few key players commanding the majority of its market share.
Meanwhile, FinTech companies and the digital-first nature of their business have introduced a new way to facilitate financial services. These companies have less overhead and are often more agile and consumer-friendly. Consumers favor the immediacy, flexibility and ease of digital-first systems and have been flocking to these online businesses, as cited by Inc. with the overall growth of the FinTech market.
In the wake of this shift, many traditionally-run agencies have been left wondering just how large of a share FinTech companies will consume and how to remain competitive. In a PWC article titled “distruption & [the] ecosystem” the multinational professional services network describes the rapid modernization that can be observed among the traditional players trying to keep the new competition at bay. “And then there are the companies investing significant time and money in fixing their own existing IT landscape, which is typically fragmented and complicated by legacy systems that are hard to maintain, upgrade, and improve.”
These firms don’t need to fear. It’s likely there will continue to be a major role for the traditional players, however, it’s critical they adapt and keep up with the changing market. With consumers looking for speed, access and customization, lenders must remain agile in order to deliver on these demands. And, in order to keep up, it’s clear that traditional operation methods won’t continue to cut it.
The Cloud Helps Lending Companies Modernize and Stay Competitive
A natural step for lending companies looking to modernize is cloud. By moving workloads off premise and into the cloud, lending companies can forgo the burden of maintaining on-premise infrastructure. Cloud infrastructure also facilitates the adoption of “Bring Your Own Device” or BYOD policies which not only save cost, but also facilitate quicker on-boarding of new employees or divisional branches.
Given the sensitive nature of financial data, lending companies should ensure they partner with a provider that has adequate security controls in place to meet compliance requirements. An added benefit is setting up a business continuity contingency for peace of mind that your business continue to operate in the event of a disruption.
Lending Industry Cloud Case Study
Many lending businesses have already put cloud into practice, including the Bank of England, which recently partnered with dinCloud. Since moving to the cloud, this national lending firm with 70+ branches across the US has realized a drastic improvement in the speed and agility of its operations. Its IT department was previously tasked with maintaining, administering and tracking devices across its network of divisional branches. Now with a cloud supported BYOD policy in place, this lender gets new branches and individual users up and running in minutes and has also significantly reduced its operational costs, achieving the agility that’s been cited as a key to remaining competitive in today’s landscape. To learn more about how dinCloud’s cloud services improved business operations for lending businesses, read the full Bank of England case study.