There is a major push in Australia to develop into a leader in Financial Technologies (Fintech) and this is providing a big opportunity to offer managed services across security, cloud, data centre for ICT companies.
A number of IT company in Philadelphia are already weighing the possible possibilities to make a lucrative investment in this field as banks and other financial institutions gear up to embrace Fintech.A key concern is the security of financial data especially when it comes to mobile transactions which are actually the brunt of Fintech transactions in Australia.
According to a recent study by Frost and Sullivan the success of Fintech is down to the ability of IT companies to provide the best security possible. The study highlights the possibility of steady growth of this security service within a period of 5 years, counting from 2015. The expected growth is put at 7.31 percent in the period up to 2020.
A research analyst at Frost and Sullivan says financial institutions have already invested heavily in security services and there is very little chance that this security can be breached, however, they still need to have much more protection than is already in place since they are dealing with highly sensitive data.
“The sensitivity of personal data means that Fintech will still provide greater opportunity to offer managed services across security, cloud, data centre in the banking industry,” Saranga Sudarshan said.He adds that the main threat is to the end user since they have a lot of mobile technology like smart watches and phones that can be easily compromised through theft. In essence he is saying that the banks already have their security in place and it is now time for the IT companies to provide secure cloud storage for the customer’s information.
The ICT companies are looking to biometric technology to enhance the Fintech security already in place. With biometric security, it will be much harder for attackers to gain access to customer data. The level of security that will be available will greatly depend though on the amount of investment the institutions are willing to put in.
The banks however, do not seem to be holding back on investing in security. There is a significant amount of profit to be made by the Australian banks if they invest in Fintech since the end user will have a more pleasant experience, which will attract more customers. A number of ICT companies are already bringing ideas to the table. IBM, Microsoft and Ethereum are developing blockchain technology which is already in the testing stage.
Since different companies would have their own preferences, it is only natural that the ICT companies explore the possibilities of customization of the Fintech software. Facebook already employs a software that can be customised by different businesses to create a security system that suits their line of business as well as their customers.
The tech companies are going to have to put in a lot of innovation in order to rip from this gold mine opportunity to offer managed services across security cloud data centre in the Fintech market.