FinTech's biggest challenge? Security and compliance.
✅ Too Complex
✅ Too Dynamic
✅ Too Many Regulations to Track
Security is the top priority for organizations, especially financial institutions; no one wants a data breach that results in millions of dollars in losses.
Take the First American Financial Corp data breach, for example—more than 885 million financial and personal records related to real estate transactions were exposed due to a common website design error.
This and many other incidents serve as stark reminders of why compliance plays a critical role in FinTech.
However, compliance itself presents a set of challenges, one of which is data residency requirements.
Before we dive deeper, let's look at an example:
A financial institution in Egypt needs to comply with local data residency regulations, meaning their data cannot leave the country. At the same time, they want to maximize the benefits of AWS, but AWS does not have a local region available.
So, the solution? AWS Outposts, a fully managed service that extends AWS infrastructure and services to an organization's on-premises data center.
With AWS Outposts, the company can maintain compliance while still leveraging AWS’s powerful cloud ecosystem. The hardware is physically deployed within the organization’s infrastructure, ensuring data never leaves the country while still enabling access to AWS services.
Keeps Data Inside the Country 🏦
Instead of storing sensitive financial data in AWS regions outside the country, Outposts
allows FinTechs to store and process data locally while still using AWS services.
Low Latency for Real-Time Transactions ⚡
FinTech applications demand low latency for transactions, fraud detection, and instant
payments. With AWS Outposts running on-premises, data processing occurs closer to users,
ensuring faster performance.
Stronger Security & Compliance 🔒
Many financial regulations require institutions to maintain full control over their
infrastructure. AWS Outposts lets FinTechs own the hardware while benefiting from AWS’s
industry-leading security and compliance standards.
Seamless Integration with AWS Cloud ☁
Even though data remains local, FinTechs can still use AWS services like machine learning,
analytics, and automation without breaking compliance rules.
Disaster Recovery & High Availability 🔄
Outposts ensures business continuity by keeping mission-critical applications running, even if
the internet connection to AWS regions is disrupted.
AWS Outposts is designed to deliver a true hybrid cloud experience, enabling FinTechs to run AWS services locally while maintaining seamless integration with AWS cloud infrastructure.
Deployment Process
1. AWS Delivers an Outposts Rack: A pre-configured physical rack with compute, storage, and networking hardware is shipped to the customer’s data center.
2. On-Premises Installation: The rack is installed within the organization’s infrastructure and connected to the local network.
3. Secure AWS Connectivity: The Outpost is linked to an AWS Region using a secure, encrypted connection (via AWS Direct Connect or VPN).
4. Runs AWS Services Locally: Supports AWS services like EC2, EBS, RDS, ECS, EKS, S3, VPC, and Lambda on-premises, providing a consistent AWS experience.
5. Hybrid Cloud Operations: Integrates with AWS cloud-based tools such as CloudWatch, IAM, CloudFormation, and CloudTrail, allowing seamless workload management.
Use Cases for AWS Outposts in FinTech
AWS Outposts is particularly beneficial for FinTech applications that require secure, low latency computing within a regulated environment:
📌 Banks & Payment Processors
Process transactions locally while complying with financial laws.
📌 Stock Trading Platforms
Ensure ultra-low-latency trade execution.
📌 Digital Lending & Credit Services
Keep customer financial data within national borders.
📌 Insurance Companies
Store and process claims securely without violating regulations.
Expanding Beyond FinTech
AWS Outposts isn’t just for financial services. It’s a perfect solution for:
Healthcare- Secure patient data processing.
Manufacturing- IoT and smart factory automation.
Media & Entertainment- Real-time video processing.
AWS Outposts provides FinTech's with a mini AWS cloud inside their country, enabling them to stay compliant, reduce risks, and enhance performance while leveraging the full power of AWS. If you're interested in learning how AWS Outposts can transform your business, reach out to us today!
