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How cloud technology is revolutionizing the finance industry

Posted 4 years ago in Tech by Beeny Atherton
Posted by Beeny Atherton

Today we’re excited to announce our latest scholarship winner – Tyler Bauer of the University of Arizona.

Tyler’s essay (below) demonstrates his passion for cloud technology and determination to use it to make a difference in the business world.

How cloud technology is revolutionizing the finance industry

By Tyler Bauer

Xero scholarship winner Tyler Bauer wants to use cloud technology to improve the financial world.

Most entrepreneurs dread the time spent on accounting and other business oriented tactics. Interning at a startup in San Francisco, I saw first hand how these tasks can take the mind of our CEO away from the task at hand – just when we needed their attention the most. Entrepreneurs have to consider the opportunity cost of working on routine business tasks because their time is limited. My goal is to bring to market cloud services with an established team, reducing overhead and bringing the most supremely valuable experience to the customer in the finance industry.

It is not enough to blow the customer away; they need to feel that they received so much value for the price that they tell their friends about the service. The cloud allows companies to provide value in an exponentially more efficient way. My goal is to use exponential technologies like cloud computing to deliver value to customers so they can maximize their leisure time while their investments grow. Just like how Xero helps entrepreneurs stay focused on their business, I want to deliver similar services that free up people’s time to do other things.

It was the middle of the summer and our company was going through some turbulence. We were trying to make sure that the traffic to our website kept going up with Google Webmaster tools. On top of that, we had to answer loads of customer service requests for programming help and have a meeting with investors. All the while, our CEO had to do our tax forms. By outsourcing accounting software and other business tasks in general, startups like ours can be more efficient.

This principle of outsourcing relates strongly to a theory from economics, comparative advantage. Comparative advantage refers to the idea that countries should specialize in what they do best and trade services accordingly. The same concept applies for companies in Web 3.0.

If a startup is extremely good at developing their product and an accounting firm is talented at accounting tasks, the startup should focus on product development while the accounting firm should focus on providing services to the startup. Accounting firms and startups can develop a mutually beneficial relationship, similar to the way two countries do under the comparative advantage principle.

As the cloud allows for companies to easily utilize each other’s services, each firm will become more specialized. Within the accounting world, there may be a one-stop shop, customer-facing application – but really the brand that the customer sees is backed by a number of smaller companies and teams who have built each function.

Essentially, everyone will be doing what they are best at. Aggregators will become more important because as options increase, customers will become overwhelmed with all the options being provided to them.

The cloud is producing innovative financial technology companies. A prime example is Robinhood, which removes the $10 per trade charge most brokerages leverage upon their customers by moving all their business to the cloud. Unlike TD Ameritrade or other traditional brokerages, Robinhood doesn’t have any storefront locations and runs their accounts almost entirely automatically. I want to create services like Robinhood that use digital technologies to upend traditional ways of dealing money.

I want to use the cloud in my career to help build companies or services to enable consumers to live more financially sound existences. I am passionate about both finance and technology and I want to bring that passion to a company who wants to create the future.

Enter Xero’s accounting, finance and economics scholarship

To anyone inspired by Tyler’s essay, we encourage you to apply for our scholarship. The essay-based competition is open to all US residents enrolled full-time at an accredited university or business school in the US. All the information you need can be found here:

Win an accounting, finance or economics scholarship for 2016

Previous winners are:

To Tyler – thank you for sharing your story with us and our readers. We wish you the best in the rest of your studies and can’t wait to see what impact you have in the world of cloud technology.

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