MongoDB Stitch provides a built-in service to easily update and track files uploaded to an S3 bucket, allowing developers to store references in their MongoDB database without having to write backend code. This eliminates the need for additional backend logic when working with cloud data storage services like AWS S3. By leveraging this feature, developers can focus on building their application rather than managing the underlying infrastructure. The integration is made possible through a simple code snippet that handles file uploads from a React.js application and updates the MongoDB database accordingly. This approach enables seamless collaboration between front-end and back-end development teams, making it easier to manage large amounts of data and reduce the complexity of data storage decisions.