HOW COLOCATION DATA CENTRES SUPPORT FINTECH STARTUPS
IP House and the Fintech Sector
Jamieson Lee Hill, Monday 8th January 2023
In this article we examine how colocation data centres like IP House London support the ever expanding Fintech sector. We consider factors such as secure and compliant data storage, innovation and scalability.
The Expansion of The Fintech Sector
The fintech sector is rapidly expanding across the world and is expected to triple and reach £380bn by 2030.
‘The UK FinTech market is expected to reach a global market share of 12% by 2030. Today almost 70% of UK individuals use less cash and more digital payment solutions.’
Source:
Linkedin 2023
The phenomenal rise in digital payments and online ecommerce during the pandemic gave the UK FinTech sector a lucrative opportunity to scale faster. IP House has been instrumental in supporting this expansion with our colocation services.
Secure Housing of Data Storage
The importance of secure and compliant data storage for fintech companies is paramount. The huge growth of ecommerce has fueled a high demand for ‘easy-to-use, online, secure payment services.’
FinTech, by its very nature, is also able to provide a unique solution to the high demand for banking services in countries lacking in infrastructure for digital banking and financial facilities.
‘Data has become more important than collateral for these providers, thanks to massive amounts of data available from e-commerce transactions, social media, and internet searches.’
Source:
RBC Wealth, 2023
As data is so important to Fintech businesses, IP House London is perfectly positioned to serve their needs and bespoke to their requirements. We are fully equipped to help Fintech Startups and existing ventures to stay compliant with the stringent regulations of the industry for compliant data storage to protect customer's details and investments.
Trust and Reputation in FinTech
“Trust forms the bedrock of the fintech industry. Clients and customers entrust these companies with their most sensitive financial data, including personal identification information and transaction histories. A single breach can erode trust and tarnish the reputation of a fintech firm.”
Source:
First Achieve.com, Sept 2023.
As trust carries so much weight in FinTech, companies need a reliable operator for their data needs. IP House is able to cater specifically to their demands in terms of protecting their data. This helps Fintechs maintain their credibility as companies that can be trusted.
Infrastructure and connectivity for innovation and scalability
The innovation in fintech is radically enhancing the customer experience (UX). Nowadays, the fintech approach is more client-centric with interactive financial and banking services. Fintech companies have harnessed the capabilities of data networks and colocation data centre services and smartphones technology to expand and innovate.
Fintech innovation is now increasing the access of liquidity and financial and banking services to a wider range of customers than in the past. IP House's 24/7 servers and other facilities provide low latency, robust and reliable colocation services to help the innovation and scaling of fintech companies.
How IP House London Supports Clients
Whilst many organisations embrace the application of both Waterfall and Agile delivery, they will inadvertently need to expand the tech stack into multi layered environments to suit various stages of Dev and Testing. Once productionised there is usually a strong case for continued running of Dev & Test environments, to help ensure future upgrades and improvements to the respective products is conducted efficiently and accurately. Further consideration of a BCP scenario is also key, ensuring alternate systems are available should there be outage/impact to Primary components.
Historically organisations have retained each of these systems in primary estate, utilising premium footprint for demon/passive/failover systems, which can just as well be managed from a Colo Data Centre such as IP House. By migrating these components and services to IP House, many customers are seeing a cost saving more than 20% when compared to utilisation of current location, along with energy costs and unplanned outages caused due to lower levels of resilience as well as physical and logical security aspects. In multiple discussions with existing and new clients, IP House identified a pattern where many smaller operators had not considered Data Centre moves as a primary activity until they experienced an unplanned outage, such as flooding, break-in/burglary, power systems failure, pest control etc.
Big brands which use colocation data centres
A growing number of big brands use colocation data centres as the demand for their services increases. The list includes:
- Digital Realty
- NTT
- CoreSite
- Cyxtera
- Amazon
- GDS
Colocation Data Centres like IP House are ideal to provide the infrastructure, connectivity, cybersecurity, innovation and scope for scaling which large and small businesses need as they embrace the digital revolution!
IP House Client Feedback in 2023
As 2024 goes into full swing, we can look back on the feedback from clients through 2023. It was extremely positive with clients stating that the migration to IP House was smooth and transparent and the expertise and ongoing attention provided, helps clients move their focus onto other business revenue items and work towards company growth.
Get connected with IP House in 2024 and help your business thrive with colocation data centre services! Fill out the form below to make contact.
Sources:
LinkedIn:
2.RBC Wealth Management:
https://www.rbcwealthmanagement.com/en-ca/insights/fintech-and-the-future-of-finance
3.Selleo:https://selleo.com/blog/why-is-fintech-the-future-of-finance
4.Stanford Law School:https://law.stanford.edu/
5. World Financial Review:
https://worldfinancialreview.com/the-future-of-fintech-technologies-that-drive-the-industry/
6. Linkedin:
7. First Achieve:
https://firstachieve.com/blog/data-security-in-fintech-priorities-and-best-practices-for-ctos/
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