GAUGING THE MARKET
also highlights its significance of this sector to the country and the belief in its potential for future expansion , which is essential for creating talent , attracting investment and supporting startups and scaling FinTechs in Wales .
Wales has also made substantial investments in its digital infrastructure to support technology-driven initiatives . As a result , high-speed Internet connectivity and advanced technology platforms are readily available , creating an environment where FinTechs can thrive . Additionally , the proximity to major financial hubs like London and Bristol presents opportunities for collaboration and access to potential clients and investors .
However , to ensure the continued success and development of the Welsh FinTech sector , we must emphasise the importance of attracting more funding to support future growth , maintaining government support and further developing the skills required . Furthermore , fostering collaboration with adjacent industries and key digital infrastructure providers is a priority .
A modern digital IT infrastructure
The current and foreseeable economic climate , where the focus of many firms has had to switch from growth to profitability , only serves to underline the strategic importance of having modern IT systems in place . Artificial Intelligence ( AI ) and Machine Learning ( ML ), for example , present major opportunities to FinTechs , helping businesses run more efficiently and compliantly while better serving the customer . But with this comes the challenge of ensuring the region offers FinTechs sufficient access to resilient and scalable digital infrastructure capable of supporting these demanding and often power-hungry technologies .
Moreover , the handling of huge volumes of sensitive financial data requires specialised , highly compliant IT . Ongoing regulatory updates , such as those related to e-money , anti-money laundering and capital requirements , require firms to be agile in adapting their IT systems to comply with changing laws . For example , the Consumer Duty regulations introduced last year requires FinTechs to ‘ deliver good outcomes for retail customers '. This means the regulators will not tolerate IT outages that harm consumers , whether that ’ s leaving them unable to access products and services , leaking their data or something else . Given the heavy penalties the regulators can enforce , the Duty has put extra pressure on FinTechs to ensure their IT systems and infrastructure providers are 100 % reliable .
Colocation and cloud
With so much at stake , we believe more FinTech companies must regularly evaluate whether it remains affordable or indeed best practice to keep all their IT systems on-premises . Increasingly , they will need an adaptable IT infrastructure to cope with future expansion , with the flexibility to adapt quickly and offer bespoke design , not to mention satisfy ever-growing IT and hybrid cloud power requirements . There are other risks too : fire , flood , power outages or the fallout from a physical or cyberattack . All can take vital systems offline resulting in loss of business opportunities , customers , reputational damage and even the potential of hefty fines . Equally , connectivity and easy access to high-speed low latency fibre connectivity is now more
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