Written by: Kirti Pachauri, Manager – Marketing, Clover Infotech
The banking sector is highly regulated and experiencing an accelerated rate of technological change. Investments in digital transformation initiatives have exploded since COVID-19. The banking sector, in particular, has embraced digital transformation to reap a plethora of benefits such as improved efficiency, reduced IT overhead, and increased innovation. Recent turbulent economic uncertainties, coupled with digital disruptions and cyber threats, have led the banking industry to think about new ways to overcome these challenges.
The traditional way of banking is disappearing, paving the way for a modern approach – the digital approach. Banks have moved to new business models with a digital service mindset to support flexibility and changing dynamics. They have recognized the importance of digital technologies as a powerful lever to improve their profits, comply with regulations and transform their customer experience.
The basic requirement for creating a seamless digital banking experience is advanced IT infrastructure. Banks need to digitize their processes, modernize legacy applications and move to virtual infrastructure to support this shift in customer mindset and preferences.
One way to optimize IT infrastructure is to partner with a managed service provider (MSP). MSP enables banks to augment the skills they lack and improve their business processes, resulting in reduced overhead, improved security and streamlined internal processes.
Below are ways in which MSPs enable the banking industry to overcome the challenges of continued business growth.
Empower internal IT teams – The growing need to digitize IT systems and processes leaves internal IT teams overstretched. Internal IT teams may find it difficult to keep up with such demands due to lack of skilled resources, transparency, and existing infrastructure. An MSP can strengthen internal IT teams by providing the services and equipment needed to upgrade the IT environment.
Supports the adoption of new technologies – Internal IT teams can feel under-equipped while supporting organization-wide adoption of new technologies. New era technologies such as AI, cloud and blockchain are invading the tech world. However, to be able to take advantage of these new era technologies, companies need to develop deep skills. Hiring or having to gain in-depth knowledge of these emerging technologies is time consuming and inefficient. In such a scenario, MSPs bring in-depth knowledge, technical expertise and skilled resources to support the dynamics of digitization and the adoption of new technologies.
Improves the customer experience – The banking landscape around the world is changing by adopting a customer-centric approach. Initially reluctant to adopt new technologies, the banking industry has now realized its inevitability. With the millennial population making up a significant percentage of customers, banks need to prioritize comfort and convenience in their services. Such an evolution requires intelligence and agility in banking processes. An MSP can upgrade legacy systems, automate redundant processes, and integrate new era technologies into existing IT infrastructure to improve the customer experience.
Modernize legacy systems – In traditional banks, employees are still working on legacy systems, leading to latency, poor experience, and increased overhead. Moving from legacy systems to new-age cloud solutions can be a daunting task for internal IT teams. MSPs have teams of experts with many years of experience. These experts are knowledgeable in different fields and have specialized skills. They can help internal IT teams move applications and underlying infrastructure from on-premises to the cloud while ensuring minimal downtime and expense.
Improves security – With the number of cyberattacks increasing day by day, it becomes important for companies to secure their IT infrastructure. This requires them to first identify the touchpoints that pose the greatest risk of being burglarized, develop solutions to secure them, implement the solutions, and then continuously monitor them for any leaks. Implementing such a threat detection and mitigation plan requires resources with the right skills. An MSP can help the organization establish a strong defense mechanism by continuously improving, monitoring and optimizing security policies and measures.
As the banking industry navigates today’s unpredictable economic and regulatory landscape, the pressure on technology teams increases. Consequently, the adoption of managed services is increasing as enterprises seek a more strategic approach to better organize, operate and protect their operations.
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