Banks increasingly embrace cloud solutions
In a recent article by Shanny Basar of Markets Media, Algomi CEO Stu Taylor, talks about how banks have become more comfortable using the cloud allowing Algomi to provide its bond information network as a software as a service offering.
Software as a service means banks need to devote far fewer internal resources, and reduced fixed costs, in adopting Algomi as the project moves from a capital to an operational expense. Each bank is on a separate encrypted server stack managed by Algomi to meet international data standards on a secure scalable service hosted by Amazon.
The ability of fintech firms to bring innovative business models increases if they can deploy cloud-based technology to increase their speed to market speed and use new APIs to collaborate more easily with both incumbents and clients.
Also, according to Brad Bailey, research director, Securities and Investments Group, at consultancy Celent said in a report last month that the cloud is the most profound disruptor in allowing the fintech revolution to occur in capital markets.
“Cloud enables a lower cost of failure, shifting capex to variable costing, and demand based usage,” said Bailey. “More importantly it allows better data models for analytical insight across the capital market value chain.”