Jun 13 2022

How Managed Services Can Help Financial Services Firms Thrive

Banks and others must build new capabilities to compete, but how can they avoid daily infrastructure management?

In a digital-first, hybrid framework world, banks and other financial services companies can’t afford to fall behind. As noted by International Banker, massive investment in fintech firms has spilled over into the banking world — now, both traditional and digital banks are creating “composable” frameworks that leverage everything from cloud computing and data analytics to advanced application programming interfaces to help keep banks ahead of the game.

But how do financial services firms make time and space for advanced innovation? With regulatory and compliance expectations evolving — not to mention complex IT environments that require additional resources and effort to reduce downtime and increase availability — it’s easy for bank IT teams to get caught up in keeping the lights on rather than pushing the envelope.

Managed services offer a way for banks to get the best of both worlds.

RELATED: Find out how the cloud can help financial institutions manage regulatory compliance.

The Rise of Everything as a Service

It started with Software as a Service and quickly spread to Platform as a Service and Infrastructure as a Service. Now, almost any technology function can be reimagined as a service, from Big Data to network monitoring and security.

Even IT personnel can be brought on board using a service-based model: The rise of virtual CISOs and other management roles makes it possible for financial firms to bring in the expertise they need, when they need it, allowing them to sidestep the challenges inherent in trying to find great talent amid a widening skills gap.

And thanks to more reliable cloud and networking technologies, these as-a-service options are no longer outliers: Banks can find providers with solid reputations for helping companies succeed.

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The Three C’s of Managed Services for Finance

There’s no one-size-fits-all when it comes to managed services for finance. The nature and complexity of these services depends on current infrastructure, business goals and potential budget. For example, a small bank or credit union might turn to a managed service provider to help keep its database environment up and running, while a large firm might choose an experienced partner to take over the management of large-scale server farms to reduce compliance challenges.  

Regardless of the specific use case, three C’s are common to managed service adoption:

  • Cost: Managed services offer an opportunity for organizations to reduce total costs. By implementing the services they need, when they need them, financial firms can avoid the costly downtime that comes with getting new solutions up and running. They also get access to expert help on demand, without having to navigate the increasingly competitive tech talent landscape.
     
  • Control: Managed services also offer financial organizations increased control over their IT environments. While this may seem counter-intuitive at first because managed services naturally involve the inclusion of a third party, the sheer complexity of current environments makes it almost impossible for teams to gain complete visibility. The right mix of services and service providers makes it possible for banks to take back control.
  • Consolidation: There’s also an opportunity for banks to consolidate their technology spending and operations. Here’s why: While the rapid shift to cloud over the past two years has seen banks adopt a host of new technologies, the sheer number and type of new solutions have created significant technology sprawl. With the right managed service partner, firms can consolidate key services under a single, securely managed umbrella.

READ MORE: Learn how banks can use AI to mitigate risk.

How CDW Can Help Financial Institutions

No matter your need, CDW can help.

For financial firms looking to reduce risk, CDW’s managed security services can help uncover potential risks, reduce the chance of data loss and deliver Security as a Service that includes endpoint, email and website protection. When it comes to the customer experience, meanwhile, CDW has you covered with support for telebanking frameworks, advanced collaboration tools and legacy ecosystem transformation.

CDW can also help banks make the most of emerging hybrid frameworks with managed services support for new cloud deployments, and network and data center optimization.

Managed services are here to stay. With the right managed service provider, firms can limit costs, improve control and increase consolidation.

This article is part of BizTech's EquITy blog series. Please join the discussion on Twitter by using the #FinanceTech hashtag.

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