Transforming Fintech with Oracle Cloud Infrastructure (OCI)

In an insightful conversation with Shabeer Kozhakkaniyil Mohamed, Senior Sales Director at Oracle, Manisha Sharma explores how Oracle Cloud Infrastructure (OCI) revolutionizes the fintech landscape. From scaling for UPI volumes to leveraging multi-cloud solutions, Shabeer sheds light on OCI’s tailored offerings for fintechs.

The fintech sector is experiencing rapid transformation, evolving from niche startups into key players in the global economy. India is leading this growth due to its vast internet penetration and robust digital payment ecosystem, and cloud computing has become indispensable.

As per a Markets and Markets report, the global fintech cloud computing market is expected to grow from $26.5 billion in 2020 to $55.3 billion by 2025, driven by demand for cost efficiency, flexibility, and scalability. Oracle Cloud Infrastructure (OCI) plays a pivotal role here, providing scalable, secure, and innovative solutions to meet fintech’s evolving needs.

Could you share insights into how Oracle Cloud Infrastructure is tailored to meet fintech’s unique needs?

Absolutely. Oracle Cloud Infrastructure (OCI) is designed with flexibility in mind, which is crucial for fintechs, especially newer ones where demand fluctuates frequently. For instance, one of India’s leading banks recently migrated its entire UPI infrastructure to OCI. Traditionally, UPI was seen as a service requiring massive, on-premise infrastructure due to its critical nature and high transaction volume. However, the bank was able to make the switch smoothly and saw significant benefits.

During events like the IPL season, for example, transaction volumes can spike dramatically due to promotional schemes. In a traditional data center, scaling up infrastructure that quickly is nearly impossible, but with OCI, the bank can scale up and down as needed, paying only for what’s used. We’ve seen similar cases with other major fintechs, such as PhonePe, moving their UPI systems to OCI.

What makes OCI particularly appealing for fintechs is our Universal Credit model. It’s a flexible credit system where clients can use credits across any OCI service, much like prepaid points that can be redeemed as needed across a catalog. This contrasts with other hyperscalers, where clients often need to reserve specific instances or sign separate contracts for each service. With Oracle, fintechs can easily upgrade to a higher-capacity server or switch to a more advanced processor as needed without renegotiating contracts or incurring additional costs.

Overall, Oracle Cloud provides fintechs with unmatched flexibility, better price performance, and innovation, including GenAI capabilities, robust compliance support, and seamless integration with industry-leading applications. It’s this adaptability and cost efficiency that make OCI an ideal fit for fintechs aiming to keep pace with rapidly changing demands.

What is the pricing model that offers this balance? Could you elaborate on that?

Oracle's pricing model is straightforward and designed for transparency. Our sales and technical teams work with clients to assess projected usage, which can be computed over a year or even longer with multi-year contracts. A key feature of our model is the Universal Credit system, which allows clients to access a range of services under a single contract, making it easy to consume and budget for.

Oracle is unique among cloud providers in that we offer fixed unit pricing for multi-year contracts, without adjusting for currency exchange rate fluctuations. This means if exchange rates change, our clients don’t face unexpected costs—giving them peace of mind with predictable pricing. Furthermore, Oracle offers consistent pricing globally, unlike other providers where costs vary by region. For example, prices at Oracle are the same in Mumbai, Singapore, Europe, and beyond. This uniform pricing ensures that global clients can deploy seamlessly across regions without worrying about fluctuating bills or unexpected charges.

Given the stringent regulatory requirements in fintech, how does OCI ensure security and compliance with local regulations?

Oracle has a long-standing commitment to security, embedding it deeply into all our products. OCI follows the same principle, with security and compliance built directly into our infrastructure. We provide robust security postures at no additional cost, including our zero-trust architecture, hardware root of trust, firewalls, and policy-based security measures. Unlike some providers who charge for additional security add-ons, Oracle includes these protections as standard.

We also have a close relationship with regulatory bodies. For instance, I ensured that our cloud centers in India achieved RBI compliance within my first year, and we continue to maintain close alignment with RBI guidelines. We regularly publish white papers to help our clients navigate compliance requirements, particularly NBFCs and fintech companies.

Given our extensive banking clientele, Oracle has deep experience in adhering to financial regulations worldwide. Fintechs benefit from both our focus on compliance and our ongoing innovation, which allows them to grow while remaining fully compliant

What do you see as the future of cloud technology and fintech over the next 5 to 10 years?

We’re witnessing rapid growth in fintech, and Oracle Cloud Infrastructure (OCI) is already supporting many of the leading players in this space. Over the next decade, I see several key trends shaping the future of cloud technology and fintech.

First, multi-cloud adoption will become the norm. Fintechs will increasingly rely on a multi-cloud approach, where multiple cloud providers—such as Oracle, AWS, GCP, and Azure—work together seamlessly. Oracle has already made strides in this direction, partnering with AWS, GCP, and Azure to ensure our cloud is connected to theirs. For example, in Mumbai, GCP and OCI are interconnected, allowing customers to run applications on GCP and OCI as if they were on the same network, with SLAs covering both providers. We’re expanding these interconnects across 15 to 20 regions globally with GCP and over 25 regions with Azure, making multi-cloud setups accessible and efficient.

Another major trend will be increased adoption of SaaS-based applications infused with GenAI. Fintechs will leverage AI-powered SaaS applications—such as lending management and loan origination systems—to streamline processes, personalize customer interactions, and improve decision-making. GenAI will enhance these tools further, enabling fintechs to deliver smarter, faster, and more personalized services.

Finally, I anticipate consolidation within the fintech sector. Just as we’ve seen with food delivery platforms like Zomato and Swiggy, some fintech companies may merge or consolidate, strengthening their market positions and fostering innovation. This consolidation will likely be driven by both competition and the need to scale up in a rapidly evolving digital landscape.

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