A Guide to IT Services for the Financial Industry

Technology keeps everything running in the financial industry, from basic transactions to complex modeling and regulatory compliance. 

But what’s keeping that technology from failing?

A solid IT infrastructure. Without one, financial institutions would struggle to maintain the level of service, security, and innovation required to keep up with customer and industry demands.

Plus, the stakes of not having strong IT services for the financial industry are high. In the past two decades, nearly one-fifth of reported cyber incidents have affected the global financial sector. Out of these over 20,000 cyberattacks, it’s resulted in $12 billion in direct losses to financial firms. That’s why cybersecurity and IT services for the financial industry are a top priority; financial institutions dedicate 13% of their overall IT budget to cybersecurity. 

If IT services and cybersecurity are top priorities for you, then you’ve come to the right place. Let’s learn a little bit more about IT services for the financial industry and the signs you need to look for if your financial institution or bank needs managed IT.

What Are Managed IT Services for Financial Institutions?

Managed IT services for financial institutions are specialized IT solutions for the financial industry that are put in place by a third party. These services include network management, cybersecurity, data backup and disaster recovery, compliance management, cloud services, endpoint management, strategic consulting, etc.

Financial institutions need IT services and heavier security because they handle sensitive data. Managed IT providers put this extra security in place through advanced encryption, system monitoring, and regular patch updates to software vulnerabilities.

Besides security, managed IT services for the financial industry are there to keep systems online and reliable. Why is this so important? Even short downtimes can hurt badly; for large organizations, downtime costs around $9,000 per minute.

Another major service for financial institutions is compliance. The financial industry is heavily regulated. Managed IT services for the financial industry can make sure your systems meet all necessary standards, whether it's PCI-DSS for payment processing or other financial regulations. This is good for your organization on two fronts. One, it can help you avoid fines by staying compliant. Two, it can also help you build trust with your clients by showing their data is handled with the highest level of care.

What Are the Benefits of Managed IT for Financial Services?

• Better Security: Managed IT services for the financial industry provide advanced cybersecurity measures like encryption, continuous monitoring, and threat detection.
• Compliance: Managed IT providers that work in finance already understand regulatory requirements and can keep your systems up to date with industry standards.
• Less Downtime: Managed IT services offer maintenance ahead of problems and 24/7 monitoring, reducing the risk of disruptions and making sure your systems are always operational.
• Cost Efficiency: Outsourced IT services for the financial industry are more cost-effective because they grant organizations access to a team of experts without the expense of hiring and training an in-house IT department.
• Scalability: Whether it's additional storage, more robust security measures, or increased support, managed IT services for the financial industry scale as your institution grows.
• Focus on Core Operations: When you put your IT into the hands of experts, it gives your team the ability to focus on core business activities and serving customers, rather than dealing with IT.
• Access to Expertise: With IT services for the financial industry, your organization, business, or institution will benefit from the latest technology and best practices available.
  
  

When Do Banks and Financial Institutions Need Managed IT?

Banks and financial institutions might not always realize it’s time to make the switch to managed IT, but there are clear signs when it’s time to bring in expert help. Here are some of the key indicators:

1. Increasing Security Threats

Financial institutions are facing a rise in cybersecurity threats; cybercriminals are 300 times more likely to target financial institutions than any other industry. If you’re worried about phishing attacks, ransomware, or data breaches, it’s probably a sign that you need to increase your security. Managed IT services for the financial industry offer advanced security protocols, ongoing monitoring, and quick responses to potential threats to protect your sensitive data.

2. Struggling with Compliance

Financial institutions are always under pressure to meet regulations. If you can’t keep up with ever-changing compliance standards or you’re worried about potential issues, managed IT services can keep your systems up-to-date and aligned with the industry rules.

3. Frequent Downtime or System Failures

Regular downtime or system failures have a negative impact on your operations and customer trust. If your current IT doesn’t give you the reliability you need, managed IT services can offer maintenance, issue resolution, and strategies to mitigate disruptions.

4. Outdated Technology

A big thing IT services in the financial industry help with is updating outdated technology. If you’re struggling to keep up with the latest advancements, consider managed IT to make sure your tech is efficient, secure, and able to grow with your needs.

5. Lack of IT Expertise In-House

Some in-house teams don’t have the skills necessary to meet IT challenges head-on. Managed IT providers bring their years of experience and solutions to the financial industry that might go beyond your internal team's realm of expertise.

6. High IT Costs

If your IT costs are ballooning, especially with unexpected expenses that pop up, switching to managed IT services can help. Managed IT services for the financial industry have predictable, scalable pricing, often at a lower cost than maintaining a large in-house IT team. You can check out our guide to the cost of managed IT services here.

7. Customer Experience Issues

If you’re facing issues like slow response times, system outages, or problems managing customer data, IT services for the financial industry can help you optimize your IT infrastructure to make your customer experience top-notch.

Get the Best IT Security Services for the Financial Industry

Managed IT services in the financial industry provide the expertise and support financial institutions need to take care of their tech, from cybersecurity and compliance to system reliability and customer service. Whether you’re experiencing growing pains, facing increasing security threats, or just need to make sure your systems are up to the challenge, managed IT services could be the answer.

If you’re ready to take the next step in securing your financial institution’s IT future, now is the time to partner with Ripple. We are SOC II certified, and our financial industry IT services support FINRA compliance, maintain financial data security, and protect Personally Identifiable Information (PII). Plus, we’ve worked with plenty of financial institutions to help set up and manage their IT, letting them focus on their core business rather than putting out IT fires.

Schedule a 30-minute consultation with Melissa to learn how managed IT services for the financial industry can support your goals and keep your financial institution running smoothly.