The payment industry is rapidly transforming and growing due to the influx of new methods, acquisitions, mergers and technologies. Processing payments is not as simple as transferring funds anymore, the new payment processing players are redefining the experience of customers while enabling stakeholders to manage their businesses with ease.
For many fintech companies, the opportunity to grow lies in adapting to the key area of the market and taking the friction out of the payments within. But how can AWS help to achieve our goal as a Financial Services provider? Let’s find out.
What is AWS Financial Service?
Amazon Web Services (AWS) provides secure, resilient global cloud services and infrastructure that financial companies across payments, insurance, banking, and market need to distinguish themselves and adjust to the demands of technology tomorrow. With constant innovation, AWS can offer deep industry expertise, the highest depth and breadth of services, the most strict security requirements in the world and an incredible partnership network.
Using AWS for your payment applications, you will be able to modernize your organization’s infrastructure, adjust according to the changing customer expectations and behaviours and acquire better growth in business.
Some of the financial institutions that have been built on AWS are Allianz, Capital One, Coinbase, Aon, DTCC, Finra, Starling Bank, Liberty Mutual, and so many others.
Although AWS offers its services to banking, capital markets, payments and insurance, today we are about to cover the details on the payments segment.
But, Why AWS?
You might be wondering, why should you move to AWS for banking instead of any other alternative. AWS has several advantages over traditional banking and other alternative cloud services, making it one of the preeminent choices in financial services. Some of its benefits are as follows:
- With the wide range of services, AWS offers extensive functionality and automation that allows payment organizations to cost-effectively and securely modernize their legacy systems while providing hyperscaling and availability around the globe.
- Having AI and ML capabilities, AWS allows marketers and developers to create hyper-personalized offers, messages and experiences for better customer engagement.
- AWS’ large suite of processing, data migration, analytics, business intelligence, warehousing, storage tools and machine learning helps businesses to create advanced applications.
- AWS enables payment companies to monitor and ensure the integrity, confidentiality and availability of their customer information.
AWS Financial Services & Payments Industry
The AWS Core infrastructure has been designed to meet stringent security requirements across the globe, including PCC DSS (Payment Card Industry Data Security Standard) compliance. It allows payment institutions to build their application on a secured and resilient cloud. Not only that, but AWS also enables these companies to transform the payments industry by making real-time decisions, processing digital payments globally, innovating & adapting to the expectations of clients, scaling based on unpredictable requirements and increasing the agility of their application.
Some of the use cases of AWS in the payment industry includes:
- Fraud Protection: One of the biggest challenges in the payment industry is payment fraud. However, by using the machine learning and analytics services of AWS, the payment industry can offer a secured customer experience while preventing illegitimate transactions. AWS products that help with fraud protection are Amazon Redshift, Amazon Kinesis and Amazon SageMaker.
- Extending Credit: Having a multitude of demands for loans with billions of people without a credit score is a massive problem in the payment industry. So, AWS data analytics along with machine learning helps these companies to collect, store and analyze the insights to make rapid credit decisions for better opportunities. Services of AWS that help in extending credit are Amazon S3, Amazon Aurora and Amazon Kinesis.
- Real-Time Decision Making: To minimize the risk and improve the experience of customers, it becomes important to make sense of data in real time. Thus, with data ingestion and streaming services of AWS, payment companies can easily offer smooth transactions for customers, enhance and automate customer interactions, mitigate risks while reducing costs. Amazon EC2, Amazon Kinesis and Amazon EMR help with real-time decision making.
Now that you know how AWS is transforming the payment industry and the services it offers for different use cases, you should also consider working with AWS on your payment applications. As discussed above, it will not only secure the transactions but also make the overall customer experience and real-time decision making frictionless.