Fintech companies have always been concerned about sustainability and are looking for ways to reduce their carbon footprint and adopt sustainable practices. These companies are leading the way by leveraging the power of cloud computing to promote sustainability by opting for 100% cloud-based architectures to host their infrastructure.
Fintech industry is actively investing in sustainability to build a greener eco-system by bringing sustainable solutions in critical fintech operations like:
- Eco-friendly payment options through digital wallets to reduce paper and plastic waste, promoting sustainable transaction processing capabilities and e-signature options
- Green loans option to help incentivize people toward sustainable development by offering lesser interest rate on certain loans
- Greener Investment are a new norm for industry leaders and capitalists, as they are constantly evaluating technologies that are working towards sustainable future by addressing environmental challenges
- AI/ML-based financial analytics is another big area of focus for fintech industries to achieve sustainability goals through automated and personalized investment advice by leveraging cloud infrastructure & mobile applications
Cloud computing acts as the foremost catalyst and enabler for the fintech industry and provides capabilities across most of the solution areas. Cloud infrastructure facilitates numerous benefits for fintech like reduced energy consumption, carbon emissions, and overall environmental impact. As per data, it’s stated that with the cloud, financial entities can reduce carbon emissions by 95% compared to those hosted on local on-prem systems.
For instance, Tandem is a UK-based bank that is on a mission to become the UK’s first green digital bank by leveraging cloud technologies to power its green digital banking products. Many other fintech companies are going beyond this, enhancing their environmental impact through innovative technologies. These include its safe, scalable platform and the digital app, which enable clients to get funding efficiently.
Apart from the fintech companies, customers are also concerned with the environmental impact of their spending decisions, including the financial services they use. It is estimated that over 72% of consumers and small business clients are interested in environmental sustainability.
By the end of 2025, the global market size of fintech is expected to reach $124.3 billion, with a compound annual growth rate of 23.84%. Therefore, fintech companies are increasingly leveraging cloud technology to enhance their sustainability efforts. Here are some ways they are doing so:
1. Reduced Carbon Footprint
By moving their infrastructure to the cloud, fintech companies can reduce their carbon footprint. The cloud allows for the consolidation of physical infrastructure, which can reduce the energy consumption required to maintain servers and data centers.
2. Energy Efficiency
Cloud service providers are investing in energy-efficient hardware and data centers. This means that fintech companies can benefit from these efficiencies and reduce their own energy consumption.
Cloud technology provides fintech companies with the ability to scale their infrastructure quickly and efficiently. This means that they can meet their customers’ needs without the need for physical infrastructure expansion, which can be costly and environmentally impactful.
4. Data Analytics
Fintech companies can leverage cloud-based data analytics to gain insights into their customers’ behavior and preferences. This allows them to offer personalized services that meet their customers’ needs, reducing the environmental impact of unnecessary transactions.
5. Higher Utilization Rate
When fintech companies use their own data stores and hardware sits idle, it creates poor efficiency and has more negative impact on the environment. It is also estimated that servers that are older than 4 years consume 65% of energy and only contribute to 4% of the performance with fast-paced technology. However, public cloud servers are typically 2 to 4 times more efficient than traditional data centers.
Overall, the cloud is a powerful tool for fintech companies to reduce their environmental impact and become more sustainable. By leveraging the cloud, fintech companies can enhance their operations, reduce costs, and improve the customer experience while also reducing their carbon footprint.
As sustainability continues to be a top priority for businesses and consumers alike, fintech companies will play a key role in driving the adoption of sustainable practices across the industry. The trend of fintech companies leveraging cloud computing for sustainability is here to stay, and it is crucial for the future of industry and the planet.
At G7 CR, we believe in creating an enduring infrastructure to achieve net zero goals by transforming enterprises through Microsoft’s energy efficient data centers, emission impact dashboards and smart factories to further contribute to 2.5M carbon negative, 1.3M water positive, zero waste, 24PB of environmental ecosystem availability.
G7 CR helped one of the largest Telco Service providers migrate to Microsoft Azure and reduce their Cloud spend by 30%. We will also help you take a first-class journey to the cloud with a hardware buyback program. Exchange your hardware for up to 125% of the market value and avail to facilitate a transition to the cloud redefining DC transformation and driving innovation.
A report issued by Microsoft Corp shows that the Microsoft cloud is as much as 93% more energy efficient and as much as 98% more carbon-efficient than on-premises solutions. Contact us to know more about how you can achieve sustainability by leveraging Azure. Write to us at firstname.lastname@example.org today and get a 1:1 consultation from our cloud experts.