Why are financial firms still paying high prices for cloud storage?
Since its advent in the 1990s and widespread availability in the 2000s, Cloud-based data storage has become widely adopted. The amount of data we can access from our mobile phones, laptops, and PCs today is staggering compared to just a few years ago. It's safe to say that Cloud-based data storage is here to stay.
Cloud storage has become the preferred option for financial services companies that need to store large amounts of data. It is more cost-effective in the long run, saving money on hardware and software licensing costs. It's also more secure because data isn't stored on a local computer or server; instead, it's hosted in a secure facility of a third-party provider. It's flexible because internet access allows you to access files from any location. No management worries about upgrading hardware and software every few years since everything is managed remotely by the provider. If a disaster strikes, cloud storage allows for easy recovery of lost data because all files are backed up regularly. In short, cloud storage provides the most scalable solution for storing large amounts of information efficiently and effectively with high-speed performance.
Good news, bad news...
The prices for cloud storage have dropped dramatically. We see it reflected in our everyday life. You can now pay ten dollars a month and receive 100 GB of Dropbox to store, send, and share all kinds of files. Yet this pricing drop hasn't trickled down to the financial services industry. Why is that?
Why are the most prominent document management solutions in fintech still charging over 50 times more for cloud storage than we can receive as consumers? Why hasn't this rapid price decline been passed on to the firms whose responsibility is to house and secure critical financial data?
We certainly aren't naïve and understand the different requirements that apply to the financial services industry from consumer cloud storage. Storage systems must be secured and compliant with 17a-3 and 17a-4 regulatory requirements, among others. We are aware of the compliance and PII security of files and folders in the cloud and that different solutions for different levels of security are required for our industry. But shouldn't fintech solution providers pass some of these savings onto financial services firms? Last time we checked, it's not the 1990s!
With new SEC rules soon to be implemented, many firms will need to review and adopt an upgraded secure storage solution. Now is a great time to re-evaluate your document storage solution and its costs. Forms Logic can help. And guess what, our cloud storage pricing is on par with what's available to general consumers!