No-one has ever said that the traditional financial services companies are leading edge when it comes to IT, but the use of public cloud seems to be an area where some FS companies are still struggling to even climb onto the ledge, let alone fear falling off it.
It’s very easy to get criticism, as a technical consultant, evangelising about the use of public cloud. The level of FUD (Fear, Uncertainty and Doubt) can sometimes be deafening.
The reality is clear though – Fintech and Insurtech companies are already there. And the reasons? Cost, ease of use and the continued innovation that the big tech suppliers are offering (in their ever-expanding cloud product range) all allow the start-ups to innovate quickly, build cheaply and pivot when they need to.
The recent results of Microsoft, when they became a trillion-dollar company, were driven by a 73% surge in revenue from their Azure cloud. Amazon Web Services (AWS) revenue grew 41% in the quarter to $7.7 billion. These companies are only going to increase innovation and offerings with that kind of return, and the gap in capability between what you can do with your own data centre/IT and what you can get from public cloud is only going to grow wider.
The Fintech and Insurtech companies are already taking small chunks of big FS companies’ business (Starling with their current account is a great example) and you can be sure that if Amazon decides to target your market in FS, then they are going to be taking full advantage of all the functions that AWS can offer them, and at the cheapest cost. This assumes, of course, that they haven’t already – I can now buy my Kindle with 5 months of interest free credit at the touch of the ‘Buy’ button.
If, as a large FS company,

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