In a constantly evolving financial world, fintechs are seeking innovative solutions to stay competitive and meet the changing needs of their customers. Two technologies are emerging as essential pillars of this transformation: cloud computing and low-code platforms. Together, these technologies offer a powerful synergy that redefines how financial services are developed and delivered.

As we enter 2024, it's becoming increasingly clear that the combination of cloud and low-code is not just a passing trend, but the future of fintech innovation. This technological alliance promises to accelerate the digital transformation of the financial sector, offering unprecedented agility, scalability, and efficiency.

In this article, we'll explore how cloud and low-code unite to create an environment conducive to innovation in the fintech domain, the benefits they bring, and the challenges to overcome for successful adoption. Let's discover together why this combination has become essential for fintechs aiming for excellence in 2024 and beyond.

The Rise of Cloud Computing in the Fintech Sector

The Cloud Revolution in Financial Services

Cloud computing has revolutionized how financial companies manage their operations and deliver their services. This technology offers unparalleled flexibility and scalability, allowing fintechs to quickly adapt to market fluctuations and customer demands. According to industry experts, the cloud has become a central element in developing innovative financial services, ranging from mobile banking to advanced payment solutions.

Cloud Benefits for Fintechs

The benefits of cloud for fintechs are numerous and significant:

• Cost Reduction: By eliminating the need for costly physical infrastructure, the cloud allows fintechs to make substantial savings. For example, a recent study showed that companies using the cloud can reduce their infrastructure costs by up to 30%.
• Scalability: Resources can be adjusted on demand, allowing for rapid and efficient growth. This is particularly crucial during peak activity periods, such as intense trading times or new financial product launches.
• Enhanced Security: Cloud providers invest heavily in security, often offering a level of protection superior to what small businesses could implement themselves. This includes advanced encryption systems, multi-layered security protocols, and regular security updates.
• Access to Cutting-Edge Technologies: The cloud provides access to advanced analytics tools, artificial intelligence, and machine learning, essential for fintech innovation. For example, fintechs can use these technologies to improve fraud detection or personalize financial product offerings.

Cloud as a Catalyst for Fintech Innovation

The cloud acts as a true catalyst for innovation in the fintech sector. It allows companies to focus on developing new products and services rather than managing infrastructure. This agility is crucial in a market where speed of innovation can make the difference between success and failure. Basikon's cloud solutions, for example, allow fintechs to launch new financial services in a fraction of the time traditionally required.

Low-Code: An Innovation Accelerator for Fintechs

Understanding the Low-Code Concept

Low-code development is an approach that allows creating applications with minimal manual coding. This method uses visual interfaces and drag-and-drop tools to design complex applications. According to trends observed for 2024, low-code is set to democratize software and application development, making innovation accessible to a greater number of players in the fintech sector.

Low-Code Assets for the Financial Industry

Low-code platforms offer several key advantages for fintechs:

• Rapid Development: Applications can be created and deployed in a fraction of the time required for traditional development. For example, projects that previously took months can now be completed in a few weeks.
• Reduced Development Costs: Fewer resources are needed to create and maintain applications. Some companies have reported savings of up to 50% on their development costs.
• Increased Agility: Companies can quickly adapt their solutions to market changes or new regulations. This flexibility is particularly valuable in the constantly evolving financial sector.
• Democratization of Development: Non-technical employees can participate in the creation process, fostering innovation at all levels of the company. This allows for unleashing creativity and business expertise within financial organizations.

The Impact of Low-Code on Fintech Innovation

Low-code allows fintechs to quickly transform their ideas into concrete solutions. This agility is particularly valuable in a sector where constant innovation is necessary to stay competitive. As highlighted in a recent Basikon article, the integration of AI into low-code platforms opens up new possibilities for automating and optimizing financial processes, thus offering a significant competitive advantage to companies adopting this technology.

Want to discover how low-code can transform your financial business? Request a demo of the Basikon platform now!

Synergy Between Cloud and Low-Code: Benefits for Fintechs

A Powerful Combination for Fintech Innovation

The combination of cloud and low-code creates a powerful synergy that amplifies the benefits of each technology. This alliance allows fintechs to benefit from an agile and scalable development platform, capable of quickly adapting to market changes and customer needs. Here are some concrete examples of this synergy:

• Rapid Development and Deployment: Applications created with low-code tools can be instantly deployed on cloud infrastructures, significantly reducing time-to-market.
• On-Demand Scalability: Low-code applications hosted in the cloud can easily adapt to sudden increases in demand, ensuring consistent performance even during peak usage periods.
• Simplified Integration: Low-code platforms in the cloud can easily integrate with other cloud services, allowing fintechs to create complete and interconnected financial ecosystems.

Accelerating Time-to-Market

One of the most significant advantages of this combination is the drastic acceleration of time-to-market. Fintechs can now design, develop, and deploy new financial products and services in record time. For example, Leascorp, a Basikon client specializing in financial leasing, was able to increase its partner network by 300% and reach 32,000 customers by the end of 2023, thanks to the ability to deploy new commercial channels in less than a week.

Improving Scalability and Flexibility

The cloud offers near-unlimited scalability, while low-code allows for rapid application adaptation. Together, they enable fintechs to evolve their solutions based on demand, without compromising performance or service quality. This flexibility is essential in a sector where transaction volumes can fluctuate considerably.

For example, a fintech using the Basikon platform can quickly adapt its credit offerings based on market changes, while ensuring its infrastructure can handle seasonal demand peaks without service interruption.

Challenges and Considerations for Cloud and Low-Code Adoption

Security and Regulatory Compliance

While cloud and low-code offer many advantages, fintechs must remain vigilant regarding security and regulatory compliance. The protection of financial data in the cloud and compliance with regulations such as GDPR are major concerns. Some experts emphasize the importance of choosing low-code platforms that integrate robust security features and comply with financial industry standards.

Basikon, for example, integrates advanced security measures and compliance features directly into its platform, allowing fintechs to develop secure and compliant applications from the start.

Integration with Existing Systems

Integrating cloud and low-code solutions with existing systems can present a technical challenge. Fintechs must ensure that their new solutions can effectively communicate with their legacy infrastructures while maintaining data integrity and security. To address this challenge, many low-code platforms, including Basikon, offer pre-built connectors and flexible APIs to facilitate integration with existing systems.

Training and Organizational Adaptation

Adopting these technologies often requires a cultural transformation within the organization. Employees must be trained in the use of low-code platforms and cloud computing best practices. This transition may require time and resources, but it is essential to fully leverage these technologies.

To facilitate this transition, Basikon offers training programs and ongoing support, allowing teams to adapt quickly and effectively to their new low-code platform.

Conclusion

The combination of cloud and low-code represents a true revolution for the fintech sector. It provides financial companies with the necessary tools to innovate rapidly, adapt to market changes, and offer next-generation financial services. While challenges remain, particularly in terms of security and integration, the benefits far outweigh the drawbacks.

Fintechs adopting these technologies are positioning themselves as leaders in financial innovation. They are capable of developing and deploying customized solutions faster than ever, while benefiting from the scalability and flexibility offered by the cloud. Platforms like Basikon perfectly illustrate this synergy, offering a low-code solution specially designed for the financial sector, hosted in the cloud for optimal performance and security.

As we move into 2024 and beyond, it is clear that cloud and low-code will continue to play a central role in the digital transformation of the financial sector. Fintechs that fully embrace these technologies will be best positioned to succeed in an ever-evolving financial landscape.

Discover how Basikon's low-code platform can revolutionize your approach to financing. Request a personalized demo today!

FAQ

What is cloud computing in the fintech context?

Cloud computing in the fintech context refers to the use of remote computing services to store, manage, and process financial data. It allows financial companies to access powerful computing resources without having to invest in costly physical infrastructure.

What are the main advantages of low-code for fintechs?

The main advantages of low-code for fintechs include faster application development, reduced development costs, greater agility to adapt to market changes, and the ability for non-technical employees to participate in the application creation process.

How do cloud and low-code improve financial data security?

The cloud offers advanced security measures and regulatory compliance, while low-code platforms often integrate robust security features. Together, they allow fintechs to benefit from a high level of data protection while maintaining the flexibility necessary to adapt to new regulations.

What are the challenges of adopting cloud and low-code in the fintech sector?

The main challenges include ensuring security and regulatory compliance, integration with existing systems, and the need to train staff in these new technologies. However, these challenges can be overcome with adequate planning and implementation.

How can cloud and low-code accelerate innovation in the fintech sector?

Cloud and low-code accelerate innovation by enabling rapid development and deployment of new financial solutions. They offer the flexibility needed to experiment with new ideas at lower cost and reduced risk, while allowing for rapid scalability in case of success.

How does Basikon use cloud and low-code in its solutions for fintechs?

Basikon combines the advantages of cloud and low-code in its platform to offer fintechs a comprehensive and flexible solution. The platform allows for rapid development of customized financial applications while benefiting from the scalability and security of the cloud. This enables Basikon's clients to launch new financial products quickly, adapt to regulatory changes, and scale their operations efficiently.