In a digital-first, hybrid framework world where customer demands are high, banks can’t afford to fall behind. The challenges are massive enough for banks to realize they need help in handling them. The time has come for banks to leverage everything from cloud computing and data analytics to achieve cost savings and stay ahead of the game. With regulatory and compliance expectations evolving, and complex IT environments requiring additional resources and effort to reduce downtime and increase availability, banks are revisiting their operating models.
The three key factors that drive banks towards efficient operating models are reliability, productivity, and security. Managed services are helping banks and other financial institutions get the best of both worlds. Banks are turning towards managed services as they focus on the need for certain specialized skills, incorporate a built-in transformational approach, and achieve outcome-based results with reduced risks. Managed IT services allow banks to focus on their core business while maintaining oversight of the areas where they have partnered with managed service providers. Moreover, managed services pave the way for the future by enabling banks to proactively discover and address technical issues while providing additional benefits, as listed here.
Stay Ahead of the Game
Banks struggle to manage their limited resources while keeping up with technological advancements. Partnering with a managed service provider gives banks access to a broader array of resources, enabling them to stay ahead of the competition. These providers have access to a team of highly knowledgeable and experienced professionals who can handle various banking functions and specialties. Additionally, they continuously update their expertise as newer technology emerges. This alleviates the burden of constant updating for the bank, allowing it to focus on other aspects of development.
There is a cost associated with moving to a managed services model, one that must be considered, as well as a continuing subscription cost for maintaining it. However, when compared to the significant value that the managed service provider provides, the cost will definitely be justified. With no need to manage and synchronize multiple vendor relationships and products, banks save on resources and gain efficiency. Managed services justify the upfront costs through increased agility, reduced risk, and best-practice operations, including standardized integrations and automation.
Satisfying Consumer Expectations
When it comes to banking operations, everything revolves around the customer. Today’s customers have convenient access to updated information, are adept at new technologies, and are influenced by online shopping experiences, which has expanded their expectations beyond limits. This shift in the market has forced banks and other financial organizations to develop new interaction models capable of delivering enhanced and personalized customer services. From chatbots to AR/VR, there are many options available to meet customers’ demands. Banks can efficiently achieve this by entrusting it to a managed service operator equipped with all the necessary elements to satisfy the growing customer expectations.
Security and regulation on priority
Security concerns were the biggest hurdle for banks to migrate to managed services. Banking institutions have always been at a higher risk of cyberattacks, which means they must be even more diligent in preventing a breach. However, this fear is misplaced. Managed service operations experience fewer security incidents than traditional data centers. Managed services use a highly robust cloud infrastructure from a leading cloud provider to provide significantly more robust security than in-house data centers. This helps reduce liability and security risks, as well as their associated costs. Performing regulatory reporting can be considerably improved, given the scalable and robust processing and advanced analysis features available.
Outsourcing core operations to Focus on Strategic Projects
Traditionally, banks were compelled to run major IT operations in-house, as neither the infrastructure nor the skilled resources were available to outsource their requirements. However, today banks can cost-effectively outsource most functions to managed service providers. Leveraging a managed service provider enables efficient management of day-to-day routine tasks, ticket resolution, and seamless operations. This allows banks to utilize their time to work on crucial strategic initiatives that can yield better results for the business.
Banks must measure and assess their resources, skills, and capabilities and understand where they want a managed service partner to take on and which part of their operations they wish to retain. With a clearly defined line indicating where the responsibilities lie and who is doing what, Managed IT service providers and the banks can progress towards peak operational efficiencies and transform the business to the next level.