Common IT issues disturbing the Banking and Financial Industry

Do you face technical issues related to IT infrastructure in banks? The rapid technological innovation in banking and its adoption introduces modern IT challenges and issues with numerous options. For instance, cybersecurity threats, risks, malicious attacks, identity theft, phishing, ransomware, and other regulatory services come under the IT challenges category for banks. 

However, digital tools and modern technology have completely transformed the banking operations from the initial account opening to the final investment in various schemes for profit. Also, banks are experiencing multiple types of financial risks due to innovation in the latest technology related to illegal access to customers’ information. Besides, hackers will execute all these malicious activities, including manipulating different financial security protocols and systems, leading to significant IT challenges.

Which IT Issues are the Banking and Financial Industry Facing Nowadays?

• Transformation towards digital methods for financial operations

Banks face IT issues and technical challenges while adopting modern tools and transforming financial operations into digital techniques through advanced technologies. In today’s digital era, the need for mobile banking is on the rise among customers, and the traditional brick-and-mortar bank system finds it an IT issue in financial services. 

Also, there is a case to handle remote workers during transformation or using digital tools, as in the Covid-19 pandemic. For this purpose, they require a secure platform and hardware to execute their tasks. Therefore, banks find it challenging to manage many remote workers at once during the transforming process and cannot educate them properly. 

Therefore, the latest technology like Microsoft 365 and Microsoft Teams provide a cloud collaboration platform that will work as effective banking IT solutions to resolve IT infrastructure transformation issues. 

However, you can take positive guidance from one of the popular Microsoft Certified Partners which will offer the necessary solutions for IT-related queries.

• A large volume of data adds extra fuel to the technological challenges

The banking and financial industry generates a large volume of data daily from multiple banking services like account details, investment schemes, financial operations, etc. Indeed, the significant advantage of this big data for banks and other financial organizations is to analyze customers’ behaviors and access their interests in financial products and services. 

Also, these data are helpful for banks to offer personalized finance technology solution. In contrast, banks face practical technology challenges in structuring, managing, and analyzing the customer’s financial information. 

Banks can utilize Microsoft Power BI to solve this IT issue, which will act as dedicated IT services for banking that clean, structure, analyze, and manage the necessary customer’s financial information and create visual reports for making informed business decisions.

• Banking IT infrastructure issues

Long years ago, traditional brick-and-mortar banking models were used for financial transactions. For example, customers or users stand in a long queue to execute multiple payment transactions as per their requirements. However, customers undergo a time-consuming process to complete single payment transactions like cash withdrawals from a savings account. 

In contrast, banks adopted the latest IT infrastructure and services for executing all banking operations with technological innovation. But poor IT infrastructure like computer systems with limited security features and outdated operating systems and functions creates a challenging task for banks.

However, banks and financial organizations should invest in suitable data management tools to improve cybersecurity that cost-effectively protect confidential financial data.

• Technology shift introduces challenges in regulatory and compliance services

Advanced malicious attacks and financial risks made banks and other financial institutions securely unstable due to the lower quality of regulatory services. In addition, regulatory and compliance services also cause a severe challenges for the banks. Moreover, regulatory agencies work differently for financial institutions and cannot protect the confidential financial information of customers from being stolen. 

Banks and other financial organizations should follow government regulations to remain secure and protected against various cybersecurity and malicious attacks. For example, financial institutions must know about anti-money laundering compliance regulations that will help banks to filter their transactions for malicious attacks, and potential fraud. Therefore, they can report this type of illegal financial transaction and services to the government.

• High financial risks of cybersecurity threats through advanced tools

Cybersecurity threats and financial risk management are some of the significant IT issues banks are facing today. With the rapid development of technology, hackers use modern tools to manipulate financial security systems and get illegal access to the systems of banks, which can cause severe damage. 

For example, while adopting cybersecurity for banking operations, banks experience advanced financial security threats and risks like malicious attacks, internal threats, ransomware, outdated systems, etc. However, banks and other financial organizations will lose millions of dollars; businesses will undergo huge monetary losses, regulatory fines, etc.

Banks face advanced cybersecurity issues while adopting new IT infrastructure to become modern-age bank which will offer flexibility and convenience to customers.

Banking and Financial Industry Technology Challenges’ Solutions

Banks and financial institutions are adopting new technologies to overcome the changing demands of customers regarding banking operations. But the entire transformation process through IT tools and infrastructure, banks and other financial organizations automatically welcome surprising IT infrastructure and technology issues like security threats, compliance issues, customer identity theft, and other queries regarding financial services. 

To combat these financial crimes and challenges, you can directly take necessary guidance from banking technology consulting services expert, which offers customizable IT solutions for financial services. In this manner, you will get the essential digital banking solutions to resolve all the IT issues in the banking sector. 

Guest article written by: Michael Donald is a senior IT Consultant at its consulting services provider, Bitscape. I have unified experience in adding value to the existing technological architecture of various businesses. During my professional journey, I have tackled a wide range of challenges and have built the ability to work through challenging issues in any industry.