As digital transactions continue to rise throughout the world, sophisticated efforts to maintain consumer safety — whether that be preventing data loss, securing transactions, or safeguarding personal information — will continue to be a requirement for financial institutions. It’s not only good business for banks, investment companies, insurance companies, and all other financial institutions to protect consumers from would-be hackers, identity thieves, and credit card thieves — it’s also the law.
One highly important aspect of ensuring the security of client or consumer information and funds involves information technology (IT). In fact, financial institutions are no stranger to IT services — they actually rely on it heavily. And while “financial institutions were at the forefront in creating the global information economy,” it’s always important to remind readers just why IT is so important in the financial sector. Let’s get started.
3 Ways IT is Used in Financial Organizations
- Secure Internet Transactions
Thanks to the internet, “banks are [now] at the forefront of both the information sharing and information security technology.” That’s because the internet has made it faster and easier than ever to send and receive money and personal information. However, without proper security and IT measures, that can come at a cost: hacked banking accounts, security breaches, and stolen identities. Rather than subject consumers to such misfortunes, it’s best to invest in a system that protects consumers’ assets and information as they move through the digital landscape. According to an article by Chron, financial institutions “cannot compete without a broad but secure information network” which means “information technology is essential to their success.”
- Global Financing Opportunities
According to Professor Jane K. Winn of the University of Washington School of Law, “financial markets can be thought of as the first organized, global information markets operating through networked computers.” This access — provided by information technology, the internet, and computers — allows financial institutions to react to global developments (such as fluctuations in the market), acquire information at the same time as competitors, and quickly access potential borrowers’ credit scores and ratings. And while much of this may seem like it’s solely focused on helping financial institutions function on a global level, it also means that financially responsible borrowers have more opportunities to borrow money no matter where they are — thanks to a lender’s ability to immediately access the borrower’s credit score and rating.
- Internal Security
Malware, specifically ransomware, is often used to target businesses and organizations sitting on a goldmine of client information. And while healthcare organizations have been at the forefront of recent ransomware attacks, financial organizations — whether that be banks, lenders, brokerage companies, insurance companies, or investment companies — may not be that far behind. Complex IT solutions for financial industries can help many organizations increase security, and become operationally efficient, all while freeing internal IT teams to concentrate on promoting innovation.
IT Support for Financial Institutions
Financial institutions need an easy, cost-effective, optimized, and secure IT strategy that offers both functional and operational support. When it comes to optimizing and safeguarding your firm’s vital data, you have zero tolerance for risk, and you have no time for downtime or security breaches. If your financial organization needs IT help, give us a call. Our managed IT services help financial institutions free up vital resources, bring IT costs under control, keep consumers safe, and become more operationally efficient— all so you can focus on your business.