How global insurance payments are going green in the cloud

Phillip McGriskin, CEO of global insurance payments provider firm, Vitesse, talks about how insurers are using the cloud for green payments

Since the early days of the digital movement, technology advancements have revolutionised work environments to achieve more efficient and profitable organisations. We now see business leaders moving beyond the bottom line, using technology to create environmentally favourable operations.

This is true for global payments, where some of the earliest digitisation efforts focused on automating simple manual tasks. In doing so, businesses were able to eliminate paper-based processes to consume fewer environmental resources.

As the digital movement exploded, process automation grew to encompass entire workflows, streamlining operations while also reducing waste and improving the environmental impact. For instance, businesses could initially scan an invoice into software to reduce the need for data entry, but advancing technology soon made it possible to send invoices electronically, automatically extract and store information, and even pay vendors without the need for paper documents or payments.

As businesses began to lessen their environmental impact through the use of technology, interest in conservation grew. According to an Accenture CEO study on sustainability, 44% of CEO respondents are now working toward a net-zero future for their organization. For many, technology will lead the way toward a greener future, particularly as cloud technologies make it easier to adopt cutting-edge advancements in payments technology. Gartner predicts that spending on cloud technologies will have grown over 23% in 2021 and that 75% of all databases will be deployed in or migrated to the cloud in 2022.

Making greener payments in the cloud

In order to understand all of the hype around cloud technology, it’s necessary to introduce some of the basics. Quite simply, the cloud is an off-premise location where organisations can store data, facilitate transactions or even consume software applications provided by external vendors. The magic of the cloud occurs from a very real-world technology called application programming interfaces (APIs).

APIs act as a connection layer, providing users with a single point of entry to the available functionality on the cloud. So, whether you’re accessing your own stored data, utilising that data to fuel third-party applications or connecting to other users on the platform, it’s possible to enable all workflows from a single portal. 

We can see the impact of the cloud on recent payments innovations. Vitesse, for instance, makes it possible for organizations to send and receive payments via a global domestic partner network. Communication with and movement of payments through the network occurs in the cloud, allowing businesses to more seamlessly transfer money, with payments made in local currencies.

However, while cloud technologies are streamlining processes and offering definite financial benefits to business organizations, such as a 30-40% decrease in the total cost of ownership, the cloud is also good for the environment, potentially reducing CO2 emissions by as much as 59 million tons per year. That’s the equivalent of taking 22 million vehicles off the roads. 

The environmentally friendly aspect of cloud technology occurs by capitalizing on the economies of scale. Not only do cloud centres utilize far fewer servers than you would require to run your on-premise applications, but they’re also now doing so in a far more efficient manner: 

  • Cloud data centres can be positioned closer to the facilities from which they draw power, preventing power losses associated with long-haul transmissions and reducing overall usage.
  • On-premise software is designed to handle high-intensity usage spikes. However, much of the time, systems sit idle, utilising high levels of energy. Cloud servers, on the other hand, have higher utilization rates, meaning very little downtime and more efficient energy usage.
  • Because cloud centres are typically engineered to use energy more efficiently than most on-premise applications, they can operate with less of an environmental footprint. One recent study determined that the energy required to run business email, as well as productivity and CRM software, could be reduced by as much as 87% of all business users moved these applications to the cloud.

Business organisations can more easily improve their own environmental accountability by moving processes, such as payments, to the cloud, while boosting internal efficiency and turnaround times for equal bottom-line results.

Vitesse is a dual-regulated provider of near real-time international payments and treasury management solutions for its extensive insurance clientele, supporting in-country payments to over 170 countries in 109 currencies around the world.

About the author: Phillip McGriskin is the CEO of global insurance payments firm, Vitesse a dual-regulated provider of near real-time international payments and treasury management solutions for its extensive insurance clientele, supporting in-country payments to over 170 countries in 109 currencies around the world.


Featured Articles

Insurtech unicorn bolttech takes on extra $50m in funding

Insurtech unicorn bolttech has taken on an extra US$50m in funding from Leapfrog Investments as part of the insurtech's Series B extension

Allianz wants to 'lead by example' with new net-zero targets

Allianz has said it wants to "lead by example" after announcing ambitious new targets to make its investment and underwriting portfolios net zero

Insurtech pricing solution Akur8 seals $25m in fresh funding

Akur8, whose insurtech solution is used by actuaries to build pricing models across all insurance lines, has received backing from Guidewire and FinTLV

Beazley launches tornado parametric insurance using NWS data


Alex Dalyac: Founding AI-based insurtech Tractable

Technology & AI

Saudi Arabia: 'solid' framework to guide insurtech sector