Why are fintech moving to saas?
Fintech companies are moving to Software as a Service (SaaS) because it offers several benefits, including:
Cost-effectiveness: SaaS allows companies to pay for only the services they need rather than investing in expensive infrastructure and Software.
Scalability: SaaS solutions can be easily scaled up or down as business needs change, making them a good fit for fast-growing fintech companies.
Accessibility: SaaS solutions can be accessed from anywhere with an internet connection, which is particularly important for fintech companies that need to provide services to a wide range of customers.
Flexibility: SaaS solutions can be customized to meet a fintech company's specific needs and can be easily integrated with other systems.
Security: Many SaaS providers offer robust security measures such as encryption and multi-factor authentication, which are essential for fintech companies that handle sensitive financial data.
“78% of UK software companies say they have SaaS solutions in development due to customer demands”
In addition to the benefits mentioned above, fintech companies are also moving to SaaS because it allows them to focus on their core competencies and leave IT infrastructure management to experts. This enables fintech companies to devote more resources to product development, innovation and customer service.
Another advantage of SaaS for fintech companies is that it can help them quickly bring new products and services to market. With SaaS, fintech companies can quickly test and launch new features and get customer feedback. This can be especially beneficial for fintech companies that operate in a highly competitive and rapidly-changing market.
“43% of UK banks have no cloud strategy or have only just started implementing basic practises ”
SaaS also offers fintech companies the ability to manage better and analyze data; this is a crucial aspect for fintech companies as they rely heavily on data to make informed decisions and provide personalized services to their customers.
Furthermore, many SaaS providers offer a wide range of services, such as customer relationship management (CRM), marketing automation, and analytics tools that can help fintech companies more effectively manage their businesses.
In summary, fintech companies are moving to SaaS because it offers cost-effectiveness, scalability, accessibility, flexibility, security, the ability to quickly bring new products and services to market, and better data management and analytic capabilities.