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The Importance of IT Managed Services in the Financial Services Sector

Abhishek Bhargva

Telco ICT

10/01/2024

IT Managed Services in the Financial Services Sector

The benefits of properly implemented IT-managed services are substantial. 

The finance sector, including banks, private equity firms, and other entities, is a highly regulated sector that depends steadily on technology. 

In the last ten years, financial institutions have experienced enormous shifts in the global economy. These have put an enormous amount of pressure on their risk and compliance operating models. 

As a result, the managed services market has continued to grow as these institutions look for innovative, strategic ways to protect their operations, maximize their IT, and increase efficiency.

To use technology to grow your business, a financial institution needs a strong technology management team. This is why a managed services provider can be a great fit for your company. The following are the top advantages of managed IT services for financial services organizations.

But before we dig deeper, Let’s first go over the definition of managed services and how this collaboration model varies from other well-liked methods of outsourcing IT work, specifically staff augmentation.

Why the Financial Industry need Managed IT Services Technology

The world, banks, and other financial services organizations are forced to adapt to the rapidly evolving digital economic climate more quickly due to the new virtual and hybrid work environment. 

When it comes to the sophistication of IT infrastructure, both traditional and digital banks are still ahead of the curve. They use everything from advanced programming interfaces to cloud computing and data analytics. It is more difficult and demands the greatest quality to support the network and all IT activities internally. The advantages of IT-managed services then become relevant.

Managed services offer the most skilled and knowledgeable personnel to handle your demands in information technology, cybersecurity, risk, and governance. Businesses can maintain an emphasis on their core capabilities by outsourcing their IT through managed services, which allows a managed services provider to take care of time-consuming daily chores like:

  • Quality control
  • Development and engineering
  • Platform administration
  • Software and application builds that can be customized
  • Manufacturing services
  • Management of configurations

IT Managed Services

Top 9 Benefits of IT Managed Services for Financial Services

1. Compliance in Financial IT

For the majority of financial sector organizations, SOC II certification is crucial. A lot of businesses are unable to work with managed service providers who aren’t SOC II, Type 2 accredited. 

Owing to their depth of resources and breadth of knowledge, managed service providers (MSPs) can have a wide range of certifications, which is one of their many advantages. This covers SOC II rules and industry certifications. Well-established MSPs will have the protocols and systems needed to obtain certifications such as SOC II.

In contrast to a small internal IT department, which usually lacks capacity, they also have a broad depth of experience to remain on top of industry rules generally. As a result, they have a level of expertise that is ideal for industry regulatory compliance. 

2. Risk Management in IT and Cybersecurity for Financial Services

It’s clearer than ever that a corporation cannot afford to take its IT security lightly. Financial companies are particularly vulnerable to cyberattacks, thus preventing a compromise requires even greater diligence on their part.

With their extensive experience in offering IT security services to several businesses, managed services providers possess an array of solutions that can aid in safeguarding your bank or financial establishment. 

Like developing the overall technology strategy, an MSP can acquire experience outside of your company in the financial sector. It’s unlikely that an internal IT department has the same possibilities. This provides you with a plethora of methods for thwarting a cyberattack, including data backup, end-user training, cloud security, and more.

3. Enhanced Customer Services

One of the most important differentiators is the customer experience and managed IT solutions play a key role in coordinating improvements to it. 

With the help of these services, financial institutions can create user-friendly interfaces that guarantee smooth interactions on web and mobile platforms. Through the utilization of sophisticated analytics and machine learning algorithms enabled by Managed IT Solutions, customized services catered to particular requirements materialize, cultivating a more captivating and pertinent customer experience. 

Enabling real-time interactions—from account changes to transaction notifications—meets the expectations of a user base used to quick access. In the ever-changing world of digital banking, Managed IT Solutions, which address the crucial issues of financial data management, security and privacy, not only protect client information but also foster trust, increasing customer satisfaction and loyalty.

4. IT Cost Reduction

Cost-cutting is an ongoing goal in the world of financial competition. IT Managed Services provides a calculated method for maximizing technology spending. Financial organizations can gain economies of scale, specialized knowledge, and efficient procedures by IT Outsourcing in Finance. This improves overall efficiency while also lowering operating expenses.

There are other expenses associated with managing an internal IT workforce, including payroll, benefits, insurance, and office upkeep. 

Outsourcing IT initiatives to managed service providers (MSPs) can help businesses cut labour expenses, avoid hiring and training IT novices, and gain access to a team of highly qualified professionals who have already received top-notch training and certifications. 

This is just one advantage of using IT-managed services. Managed services also reduce the need for emergency repairs, consulting, and licensing.

5. Business Continuity in Finance

A bank or financial institution’s perspective might frequently become limited if it solely has an internal IT department. Since they exclusively collaborate with one particular company, they usually only consider things from that perspective. 

Furthermore, an internal IT staff may find it more difficult to have the time and resources to think through larger-picture issues and carry out long-term strategies when faced with a busy daily schedule and limited resources.

An experienced managed services provider has worked with numerous companies in the financial sector and, as a result, is knowledgeable about various approaches to integrating technology into the company. 

6. Staying Ahead of the Financial Technology Trends

Keeping up with the latest developments in financial technology is essential. Financial organizations can easily adjust to the digital transition thanks to managed IT solutions. IT service providers are essential in integrating cutting-edge technologies that improve consumer experiences and operational efficiency, from blockchain to artificial intelligence.

IT Managed Services

7. Most IT Service Providers come with Expertise

The introduction of new technology brings with it new difficulties that internal IT teams may need to acquire the knowledge or expertise to handle. 

Finding new experts to fill the void is the solution, but it can be expensive to hire and train new staff—training alone can cost over $1,886 per person. 

Having a staff of highly skilled professionals with credentials, training, certifications, industry-specific experience, and knowledge at a set monthly fee is one of the biggest advantages of outsourcing IT through managed services. 

Thanks to their access to the newest models, they have quicker and more seamless technology implementation.

8. IT Spending that is Scalable and Predictable

It might be expensive to invest in IT infrastructure and procedures. Predictable spending is one of the main advantages of IT-managed services. 

Depending on the kind of service the customer selects, outsourcing IT services enables businesses to combine all of their costs into a single, fixed set of OpEx charges. 

It leads to the elimination of initial capital costs. The customer can steer clear of pricey infrastructure purchases. 

For instance, the consumer may choose to use MSP and receive monthly access to the tool rather than purchasing a new, pricey one.

9. Managed IT Services Promote Productivity

For IT Service Management (ITSM), collaborating with a Managed IT Service Provider will help you optimize your systems and boost team productivity. MSPs create effective processes that use technology to enhance operations. Through this process, they can pinpoint specific issues that impede departmental performance.

10. Timely IT Support for Finance

You don’t have to be concerned about a delay brought on by technical problems or outages when you work with an MSP. 

MSPs provide help to their clients around the clock to guarantee that their business continues to grow. 

Businesses may also want to think about working with global MSPs to benefit from numerous time zones and 24/7 support at any time.

Telco ICT Group: Specialised IT Solutions for the Financial Services Industry

For financial companies, managed IT services offer numerous advantages. In general, any firm in the financial sector can greatly benefit from an MSP’s degree of experience. Remember that an MSP is not the same as your primary supplier. 

It is not IT networking or infrastructure; your core provider provides core software. The foundation of a managed services provider’s business is excellent IT solutions for banking. Superior core software is the foundation around which a core supplier has built their company.

In a manner that internal IT teams frequently can’t, managed service providers like Telco ICT can bring everyday experience from outside your company. This gives the best-in-class IT strategy for financial institutions, IT security, and more. 

The main objective of your company is to serve your customers better, and using Telco ICT can help you do just that. 

Contact us today!

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