Dave Goodenough
Dave Goodenough 23 March 2020
Categories Technology

How Engaging Managed IT Services Can Bolster the Financial Services Industry

Financial organisations can benefit immensely from a user-friendly, sophisticated, and secure IT strategy. It is crucial to manage and safeguard customers’ data, which is possible only by eliminating risks and minimising downtime as well as security breaches. Most financial organisations need help in this regard. It is best to work with an experienced managed IT, service provider. Taking this step can help financial firms free up key resources, lower IT costs, protect data, and enhance functional and operational efficiency.

It’s no secret that the modern economic landscape is abound with volatility and unpredictability. Financial institutions are regularly required to traverse it while mitigating risks and maintaining compliance. These firms also have the responsibility of securely managing sensitive business and customer data. This is where hiring a reliable managed IT services provider can pay off.

Adopting managed services makes perfect sense as they empower financial institutions to respond more strategically to threats and breaches. These services also enable firms to better organize, operate, and protect their business.

It is best to tie up with a local managed IT services provider as only such a partner will understand all the compliance elements applicable in your region. So, a financial firm offering services in Detroit should engage in managed IT services in Detroit for its needs. Ensuring this is crucial.

Before finding out how managed service providers help financial companies, let’s take a look at some of the most pressing problems plaguing them currently.

1. Challenges Faced by Financial Firms

Financial institutions deal with several operational challenges, which make them turn to managed IT service providers. Here are some of the main ones.

  • Maintaining Regulatory Compliance

Continuously changing compliance needs to be tracked and adhered to by financial institutions when collecting customer data. Regulatory compliance dictates how these institutes collect, store, and use not only this data but also their cash reserves, and determines how they make loan decisions.

Keeping up with the changing guidelines while deploying user-friendly and compliant tools that help fulfill regulatory requirements can be immensely challenging for financial organisations.

  • Working with Legacy Systems

Several financial institutions work with legacy systems, databases, and applications. While these frameworks are crucial to the functioning of businesses, they can impair their ability to respond to fluctuating market conditions and to adopt advanced technologies such as artificial intelligence and blockchain. Upgrading/modernizing systems can be costly and disrupt day-to-day business operations.

  • Managing Expenses

Modern financial markets are as competitive as they are volatile. Revenues are threatened by traditional and contemporary players, which is why financial institutions need to work out ways to maximize revenue per customer. Enhancing investments by swapping capital expenses with flexible operating expenses while curtailing hiring costs and garnering higher ROI can be extremely complex.

  • Maintaining Customer Loyalty

Thanks to the internet’s widespread reach, financial organizations can enter new markets spread across geographies. Customers are no longer constricted by financial institutions within their city. Modern financial firms need to constantly work towards retaining customers and present them with new products that meet their needs. In the process, it is crucial to foster innovation and ensure constant improvement in service delivery, which can be perplexing.

2. How Managed IT Services Help

Managed IT service providers that have experience in working with financial companies can be strong allies in fortifying IT systems for user-friendliness, security, compliance, and more. Let’s learn how.

  • Save Resources

Partnering with a managed IT service provider can help financial firms save money in the long term due to their pricing plans. These firms will never have to worry about building a contingency fund for IT emergencies as all IT needs will be covered by the provider at no extra cost.

Companies will not have to worry about financial risks in case of an industry-wide data breach as the provider will be in charge of protecting the data. The managed IT service provider will also update the organization’s IT infrastructure in a timely manner. Overall, the managed services provider will take care of all the IT needs, enabling the leadership to focus on the strategic aspects of their business.

  • Access the Latest Technology

Financial organisations that work with managed IT providers get access to the most advanced technology without worrying about its maintenance. This can be especially helpful in modern times as customers expect to be able to access their accounts safely from anywhere at any time.

Managed service providers can upgrade and modernize IT systems without disrupting day-to-day business operations. They can instate the best communication channels, thereby enhancing customer experiences and improving business productivity. They can also take care of VoIP requirements to engender extraordinary customer service.

  • Have Experts At Your Service

By hiring managed IT service providers, financial institutions work with the best talent in the industry. Trained and experienced IT professionals manage every IT need, regardless of the complexity.

While in-house IT departments have the manpower that’s enough only to manage everyday tasks, managed service providers take a more proactive and holistic approach. They constantly work to prevent downtime rather than fix issues when they occur.

  • Harness Cloud Technology

All modern organizations are harnessing cloud technology as a secure and accessible data storage solution and financial organisations are no exception.

A managed IT service provider can help financial companies migrate their business-critical data to the cloud or cloud servers in the most secure manner. Further, the provider also ensures that this technology stringently conforms to current industry regulations.

  • Enhance Your Cyber Security

Certified managed service providers can help financial institutes keep their IT infrastructure truly secure by implementing steps that are in line with industry regulations. This is crucial because customers trust financial organisations with confidential information, and this trust needs to be upheld.

The Federal Financial Institution Examination Council has put in place cybersecurity policies and protocols that need to be followed mandatorily. A managed service provider will perform risk assessments and make sure that customers’ data is gathered ethically and that it remains safe.

  • Maximise Uptime

It is necessary for financial organisations to have a foolproof and reliable IT infrastructure so that customers are not bothered by interruptions when transacting.

In the event of a security breach, equipment failure or natural disaster, a managed service provider will be able to respond proactively and prudently to the crisis, thereby minimizing the prospects of downtime and interruption in services to customers.

  • Enhance Employee Productivity

Employees in financial organisations work with technology all the time. Network downtime or slow, unresponsive computers can greatly hinder their efficiency.

A managed service provider can expertly maintain your IT infrastructure so that it never hampers employee productivity. The provider will have a watertight plan of action in place that will help sustain your network and ensure it is in peak working condition. This, in turn, will service delivery so they get exactly what they’re looking forward to.

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