To remain competitive, financial services providers are undergoing a significant digital transformation. Recently, we have witnessed a growing trend among financial institutions and payment companies, who are adopting hybrid multi-cloud architectures as part of their digital transformation initiatives. Financial services organizations have valid concerns about over-reliance on a single cloud provider, prompting them to carefully consider their cloud strategy.

Utilizing multi cloud environments can help payments companies:

  • Implement redundant infrastructure on multiple clouds to remove the single point of failure and prevent service outages.
  • Unlock the full potential of open banking and Banking as a Service by moving data freely across the banking ecosystem, without interoperability issues or excessive fees.
  • Store and move data in compliance with data sovereignty and privacy regulations such as GDPR, CCPA and PIPL

The common factor across all these points is data. We live in an era when data has never been more valuable, which means it’s never been more important to store and transfer data the right way. With the growth of artificial intelligence and machine learning (AI/ML) technologies, payments companies can analyse their data in real time, capture insights at scale, and apply those insights across their operations to drive better results. In contrast, companies that fail to fully capitalize on the opportunities hiding in their data will miss out on a key source of competitive differentiation.

Many traditional banks are sitting on mountains of data but lack the modern payments infrastructure and data analysis capabilities they need to extract insights and business value from that data. As FinTech’s and modern challengers use data to open new revenue streams, an optimized customer experience and better analytics, traditional banks risk being left behind. They need to optimize their data management strategy, and a hybrid multi-cloud approach can help them do that.

Architecting for data at core and edge locations

Modern digital infrastructure is made up of three distinct components:

  • The digital core, where historical data is stored and used.
  • The digital ecosystem, where all members of the value chain come together to share data among themselves.
  • The digital edge, where end users create and interact with data.

These three components require effective, secure storage solutions to allow access to relevant data on demand. To achieve that goal, financial institutions can take a cloud-adjacent approach to digital infrastructure.

Essentially, cloud adjacency enables the next step in the evolution of hybrid multi-cloud. It entails deploying core digital infrastructure in cloud-adjacent data center locations that provide connectivity to cloud on-ramps. As a result, companies can maintain data sets wherever they need to, depending on scenarios like special data sovereignty and privacy requirements. Also, they can make use of a partner’s data services solution that facilitates data portability and management across their hybrid multi-cloud architecture.

They can move data to and from the clouds of their choice quickly and cost effectively. They’re also able to integrate with customers, partners, and service providers from their digital ecosystem, adding new capabilities and creating monetization opportunities. Finally, placing digital infrastructure closer to end users at the digital edge can help execute payments in real time and support an optimized user experience.

How can MDXi Data Center Services help modernise your data strategy?

MDXi, an Equinix Company delivers reliable and cost saving solutions to enable financial service providers adapt to evolving technology trends and meet the increasing demands for data processing and analytics for improved decision-making, innovation, and competitive advantage.

Our end-to-end Multi Cloud portfolio can assist your business at whatever stage you are at with our bouquet of services.

We have helped many other financial institutions and payment providers in West Africa achieve their digital transformation journey. Find more case studies here

MDXi Tier III carrier-neutral Data Centers in Nigeria, Ghana and Cote d‘Ivoire provides colocation and cloud infrastructure services with up to 99.999% uptime availability, security, open-access connectivity and world class support.

To modernise your data strategy, speak to an expert here