There is a belief that big technology companies will soon become a major threat to traditional banks. And the AWS cloud is certainly make this notion a reality.
In fact, Amazon has invaded their turf already by offering a number of financial services that are actually reshaping the very workings of the financial industry.
The world’s largest cloud provider has massively lowered the barriers to entry for financial startups.
Back in the old days it used to cost firms millions of dollars just to buy servers, but now this can be accomplished by spending just thousands. Same is the case for workforce — these organizations can now accomplish what they want with as much as ten times fewer employees.
And while the main advantage for these financial startups is the ability to quickly add or subtract computing capacity, the AWS platform also provides them access to machine learning tools and the ability to automate data storage processes.
All of these, in turn, help reduce headcount further.
Yet, at the other end of the spectrum, you have Amazon itself offering an increasing amount of financial services, including lending for small and medium sized companies. The retail titan is widely expected to expand in this sector in the future, too.
Combine this with its cloud stature that serves as a backbone for many financial companies, the finance industry could be soon find itself dependent on its main competitor.