Cloud technology has been around for decades, but COVID-19 brought about an intense increase in the demand for cloud-based systems in every sector. One of the demands of the global pandemic over the last two years is that many businesses were forced to adapt to a remote ecosystem. Yet even though this boom in cloud-based fintech was born out of necessity, it is hopefully here to stay because of the increased convenience it provides for CFOs in all aspects of daily business operations.
Perhaps the most apparent benefit of cloud-based financial technology is increased efficiency. Cloud technology tends to be based on a much more modern interface and based on recent trends of user-friendliness. This allows the user experience to be much more intuitive and convenient, which is especially important for tasks fundamental to standard operations.
At this point, the role of the CFO has expanded beyond its basic job description into a much broader, more involved position with responsibilities reaching beyond its core financial duties. Cloud technology simplifies many aspects of the CFO’s core duties by facilitating access to data and reducing computing time. This is an investment that will allow CFOs to focus on the other duties they have on their plate, which will positively reflect the company’s overall success.
Cloud-based financial technology is also a very cost-based solution for data management. Gone are the days when organizations must purchase data centers full of servers and storage. Now, companies can rent that virtual space and access it virtually anywhere in the world. “Cloud computing is little more than simply renting someone else’s data center,” says Mike Gibbs, CEO of Go Cloud Careers. “From this, we can get our own virtual private environment that is shared with us from someone else’s data center. The cloud is nothing mystical; it is a network and datacenter that has been virtualized.” The costs of maintenance and storage of this costly equipment are substituted for the cost of leasing this virtual space.
Additionally, cloud-based solutions for financial technology allow companies to react to significant real-world events. In times of crisis, it can be a necessity more than a luxury to access essential operational data and information from locations other than the central office. The cloud is a much more flexible system than traditional methods of data and computing, with increased versatility and adaptability.
Critics of cloud-based technologies have suggested that the highly online nature of this type of software lends itself to security issues, but in reality, it is quite the opposite. Having an entire company whose purpose is to store and secure this data ensures a constant level of care being taken towards the security of your company’s information, compared to it just being another facet of your business operations.
Furthermore, cloud-based technology offers the opportunity to keep up with the latest trends and developments. Whereas investing in in-house equipment requires a company to lock into that particular technology until they are ready to make the financial commitment to catch up to innovations, the cloud allows companies to stay up-to-date as the technology changes.
CFOs should embrace new cloud-based technologies because of the clear benefits for ease of use and productivity. Companies must stay up to date with the most recent cloud-based technology as it arrives because of its added functionality, increased convenience and flexibility, and enhanced security. What used to be considered a luxury quickly became a fundamental aspect of operations.
The author, Jay Jung, is the founder and managing partner at Embarc Advisors.