You’ve probably heard it time and again: businesses that want to stay ahead of the curve in today’s rapidly evolving digital landscape must invest in technology solutions that make and keep them competitive. Those in the financial sector must be particularly agile, adaptive, and forward-thinking if they want to stay ahead of their competition. And they must do it in a way that maintains a strong and secure tech infrastructure that meets customer demands while complying with the industry’s strict regulatory requirements. These factors often lead businesses in the Financial Services Sector to outsource work to an IT Services Provider to assist their IT Department on projects and add, replace, or upgrade their current IT Solutions. 

The value managed IT services from Choice Solutions bring to the digital table include cutting-edge technology solutions with personalized support and guidance that help our financial clients achieve their goals. We work closely with banks, investment and brokerage firms, credit unions, FinTech, and more, giving them the tools and resources needed to succeed today and tomorrow. We provide unparalleled support and guidance that ensures seamless integration and adoption of new technologies. 

What are the Top Technology Risks Financial Service Providers Face? 

There’s no denying that technology is becoming increasingly beneficial to how financial institutions do business. Banks are already using AI-driven bots for everything from onboarding clients to performing automated risk analyses. AI-based anti-money laundering solutions help them avoid fraud, and the explosion of cloud technology is helping them rein in costs and scale more efficiently. 

As you might expect, this rapidly changing digital landscape is also posing significant risks that financial institutions must manage and control if they want to hold onto their customer and stakeholders’ trust.  

Do you remember the SolarWinds cyberattack? In December 2020, multiple US government agencies and private companies, including banks and financial institutions, suffered a supply chain attack that experts believe was launched by a Russian state-sponsored group known as APT29 or “Cozy Bear.” After the group gained access to SolarWinds’ software update system, it inserted a malicious code (SUNBURST) which, when customers downloaded and installed it, gave the attackers access to their systems. The attackers then quickly moved within the compromised networks to steal data and access sensitive personally identifiable information or PII. 

To this day, the full extent of the damage caused by SUNBURST is not known, but experts say it’s one of the most substantial cyberattacks in recent history. 

If there’s any silver lining to be found in this serious breach, it’s that it: 

• Highlighted just how vulnerable financial institutions are. 
• Emphasized the importance of strong cybersecurity measures, including continuous monitoring, risk management, and disaster recovery plans. 

Additional risks banks and other financial institutions face with advanced technologies include: 

1. Security. Cyber threats like ransomware attacks and phishing scams cause financial losses, loss of sensitive data, and reputational damage. And data breaches that violate regulations such as GDPR and CCPA, which mandate strict requirements for the handling of PII, can lead to legal and financial penalties and fines. 
2. Compliance. Non-compliance with federal and state laws like the Federal Reserve Act, Bank Security Act, and the amended Dodd-Frank Wall Street Reform and Consumer Protection Act. It’s imperative for financial providers to implement robust data retention, protection, and reporting measures and policies to demonstrate compliance. 
3. Data management. Few industries produce and process as much data as the financial sector. It’s critical to ensure all data is appropriately managed, stored, and analyzed. 

Another significant but often overlooked concern is technology obsolescence. It’s easy to get caught up in the excitement of emerging technologies that promise faster and more secure results. But those new solutions come at a cost, and not every organization has the resources to keep up with emerging trends. 

As legacy systems become obsolete, they also become much more difficult to integrate with newer technologies, resulting in: 

• Third-party vendor risks where adequate security measures aren’t in place or compliant. 

• Human error, including accidental disclosure or deletion of PII, being taken in by phishing scams, or failing to follow the company’s security procedures. 

Financial providers must find a cost-effective way to invest in specialized expertise to manage these systems as they pursue full digital transformation. 

Why CIOs Are Finding It Challenging to Keep Up?

While chief information officers are tasked with overseeing a company’s tech strategies and operations, their primary role is to align technologies with business goals and objectives. And nothing’s more important to a business’s bottom line than satisfied customers. 

Focusing on technologies and customer satisfaction is critical for financial providers that want to remain competitive, improve operational efficiency, and deliver exceptional customer experiences. 

Study after study shows that today’s financial customers expect fast, seamless, and personalized experiences. Modern technologies like online banking platforms, mobile apps, and chatbots can meet those expectations, but only if they’re continuously updated and improved. 

Keeping up is challenging for CIOs for several reasons: 

1. Rapidly evolving technologies that require constant and often time-consuming learning and adaptation. 
2. Complex IT infrastructures make it challenging to identify vulnerabilities and threats across networks. 
3. Limited resources, including money and staff, make it difficult to implement improved measures. 
4. A lack of cybersecurity expertise, which puts the company at significant risk of cyber threats. 

Partnering with a managed service provider gives CIOs access to specialized expertise, predictable costs, and the latest technologies, making it easier to manage technology infrastructures and improve efficiency. 

How can you Protect your Financial Service Business? 

With Managed IT Services. A couple of months ago, we published an article on why a business needs an MSP in 2023. Many of the benefits listed there apply to financial institutions. However, there are additional reasons why companies in the finance sector should choose managed services to help them keep up with the challenges we mention above.

Here are 4 reasons a financial services Business may want to partner with a Managed IT Services Provider: 

1. Expertise 

An MSP has expertise in managing and maintaining the financial sector’s unique technology infrastructures, including network and security management, database administration, and software development. Leveraging a qualified MSP’s know-how ensures your technology infrastructure’s adequately maintained and optimized for performance and security. 

2. Cost Savings 

Outsourcing IT operations to a cloud-based solution provider can be more cost-effective than hiring and maintaining in-house IT teams. MSPs typically provide economies of scale by leveraging their expertise and infrastructure across multiple clients. And they offer multiple pricing models that can help your financial institution better manage its IT expenses. 

3. Scalability 

It stands to reason that as your financial institution grows, its technological infrastructure must also evolve and expand. An MSP provides scalable solutions that grow and adapt to meet changing business requirements, allowing you to scale up or down as needed while avoiding the costs and complexities of managing your own IT infrastructure. 

4. Compliance 

In the highly-regulated financial services industry, many companies find staying on top of data privacy, security, and regulatory compliance regulations an arduous task. An MSP can help you meet applicable requirements by providing specialized expertise in compliance and security management. You also get ongoing monitoring and reporting to help your business stay compliant now and in the future.

Want to Explore Comprehensive IT Services for your Financial Business?

As a top provider of IT services for financial businesses, Choice Solutions can be a valuable partner in helping you bridge the gap between transformative technologies and organizational initiatives and processes. We offer a comprehensive suite of services that includes everything from hybrid cloud computing to data management, cybersecurity, and network solutions, all tailored to meet your organization’s specific needs, and we are SOC 2 compliant. With our innovative solutions and services, your enterprise can achieve its goals, increase productivity, and drive growth, all while staying secure and compliant. 

Already have an in-house IT team? Our services help them focus less on near-constant tech issues and more on working with leadership to develop new products and services and dream up ways to address perennial organizational problems. 

Enhanced security and compliance, reduced downtime, improved customer experiences, and more manageable IT costs make it clear that choosing to partner with an MSP can be one of the best investments your company can make.