FinTech firms have redefined how customers save, spend, and invest their finances. But, with innovation comes the need for scalable cloud observability solutions. These solutions enhance the FinTech app’s performance, security, and compliance.
As per a recent report by Chronosphere, “2023 Observability Report,” –
A cloud observability platform in FinTech provides real-time visibility and insights into the cloud-based apps and infrastructure. It helps FinTech firms track and manage the systems. These solutions also help identify and resolve issues quickly and optimize the app’s overall performance.
Why FinTechs Need Cloud Observability?
1. Security
FinTech firms holding customer funds or handling sensitive customer data are prime targets for hackers. Cloud observability solutions allow firms to assess app logs to detect anomalous user behavior that could lead to breaches.
Significant investments in cloud observability help retain telemetry data for longer periods. Cloud observability tools help track cloud-based apps and IT infrastructure at scale. This way, SecOps or DevOps teams can be alerted when a potential application or security issue is detected.
2. App Performance Optimization and Log Retention
Increasing competition in the FinTech sector also drives the need to deliver the best user experience and boost retention rates. Cloud observability solutions help monitor and track app performance metrics and identify and fix issues, enhancing customer experience.
As customers grow, FinTechs must retain app logs at scale. But, with the growing number of daily user sessions, log retention becomes costly. A high-scale cloud observability solution helps retain more app logs to support long-term use cases. For instance, to analyze app performance and usage trends over time.
3. Root Cause Analysis (RCA)
FinTech firms must investigate and understand the issues and determine the root cause when security issues are detected. Chronosphere’s report also states that 87% of firms using cloud-native architectures have increased the complexity of troubleshooting incidents.
Cloud observability allows FinTech firms to troubleshoot cloud services and conduct RCA by analyzing historical log data. Deploying high-scale cloud observability solutions can help retain logs longer at lower costs. This way, firms will have more access to historical data to troubleshoot and analyze the root cause.
4. Compliance and Cost Optimization
A cloud observability platform can help firms achieve compliance objectives by tracking data access and ensuring data integrity. Moreover, the demand for FinTech services fluctuates. This requires firms to see fluctuations in cloud-based workloads and costs.
A cloud observability platform helps obtain insights into cloud resource utilization. This enables FinTechs to optimize infrastructure configurations, manage scaling, and allocate resources efficiently.
Also Read: Cloud-based Payment Infrastructure: The Future of Fintech
How Can FinTechs Improve Cloud Observability?
1. Select a Scalable Observability Solution
FinTech companies experience increased daily log ingestion. Hence, they need a cloud observability solution that performs high-scale queries without degradation. It must index cloud logs, support SQL queries on log data, and complete text search and ML workloads even with large log data.
2. Reduce Management Overhead by Simplifying Observability Stack
Management overheads in cloud observability solutions occur due to configuration and maintenance tasks.
Tasks like building data pipelines, configuring log ingestion, and implementing and managing backup clusters add minimal value to the result.
Hence, financial institutions need cloud observability solutions that easily ingest, transform, and analyze the data. Further, the data can be indexed and analyzed automatically. It must eliminate the need for time-consuming pipeline configuration. This allows firms to assess data in new ways and extract insights or identify new analytics use cases.
3. Lower Observability and Data Retention Costs
As daily log ingestion grows, retaining historical data in a cloud observability solution becomes expensive. FinTechs often reduce the log retention window to save costs.
While this lowers observability costs, it also means that critical data being deleted can be used to support long-term analytics use cases. Hence, choose a solution that allows users to retain and query that data at lower costs.
Unfortunately, current solutions cannot handle the scale of data generated today. To address this issue, FinTech firms must add additional nodes to improve their performance. However, this results in high infrastructure costs and management overhead.
Chronosphere’s report also states that-
Conclusion
In the fast-paced FinTech sector, observability is a vital factor that drives innovation and helps deliver exceptional customer experiences. However, traditional app performance monitoring tools can be expensive and complex, particularly at scale.
With the right cloud observability solution, FinTechs can unlock the true potential of their tech stack. It will help them maintain a competitive advantage, drive innovation, and explore the challenges of an evolving market.
