The UK financial services industry has undergone significant transformation in recent decades, driven by technological advancements such as online banking and the emergence of cryptocurrencies. These innovations have reshaped the sector and introduced new opportunities alongside evolving security considerations. Consequently, ensuring robust and reliable information technology (IT) infrastructure has become a critical priority for financial institutions. This blog article explores the ten key benefits of managed services for banks and financial institutions, enabling them to navigate the evolving technological landscape and address their IT challenges effectively.
The Forces Driving Strategic Change in the UK Financial Sector
The UK financial services sector faces intense pressure to adapt and transform in a globalised, accessible, and increasingly unpredictable market. Managed services in financial services can help by providing compliance expertise and keeping them updated, freeing up resources for core functions. Here’s a closer look at some key drivers of this strategic change:
Market and Regulatory Changes
- Post-crisis Regulatory Landscape: Tighter regulations (e.g., higher capital requirements, stricter risk management) implemented after the 2008 crisis aim to improve financial stability and consumer protection (as enforced by the FCA).
- Open Banking Revolution: Open access to customer data with their consent (mandated by the OBIE) allows FinTech startups to create innovative financial products that integrate with traditional banking systems, fostering competition.
Technological Transformation
- Digital Revolution: Customers demand seamless digital experiences, which is why IT services for financial services can help modernise systems, improve efficiency, and enhance security, all while remaining competitive.
- Cybersecurity Imperative: The financial sector is a prime target for cyberattacks. Robust cybersecurity measures are essential to protect sensitive data and ensure financial stability.
Talent Acquisition and Retention
- FinTech Skills Shortage: Financial institutions struggle to find talent with skills in AI, blockchain, cybersecurity, and data analytics – crucial for innovation and data-driven decision-making.
- War for Tech Talent: Competition from FinTech startups and technology companies makes attracting and retaining skilled staff a challenge. Competitive packages and career development opportunities are key to winning the talent war.
Cost Pressures
- In-house IT Burden: Maintaining complex IT infrastructure is expensive. Cloud computing is one option, but for even greater cost-efficiency and scalability, financial institutions can delve deeper on the importance of managed services.
- Regulatory Compliance Squeeze: Evolving regulations add costs through compliance teams and processes. Optimising compliance while maintaining control is key.
- Innovation vs. Efficiency Challenge: Balancing investments in new technologies with managing operating expenses is crucial for long-term success. Using cost-effective solutions and technology to streamline operations can help achieve this.
Top Ten Benefits of Managed IT Services for the Financial Service Industry
- Fresh Perspective & Innovation: Internal IT focuses inwards, potentially limiting innovation. One of the benefits of managed services is you have professionals bringing best practices from across the financial sector, sparking fresh ideas and propelling you towards industry leadership. Additionally, their vast resources handle routine tasks and strategic initiatives, freeing you to leverage technology for growth.
- Compliance Expertise & Efficiency: Financial institutions require certifications like SOC II. Managed IT service providers possess these certifications and established processes, ensuring smooth audits and optimal compliance. Their deep bench of regulatory experts surpasses a small internal IT department’s capability.
- Enhanced Security from Experience: Financial institutions face heightened cybersecurity risks. MSPs, with experience securing various organisations, offer a comprehensive security toolkit beyond the capabilities of an internal IT team. Leveraging industry knowledge, they design a robust security strategy encompassing cloud security, user training, and data backup.
- Disaster Recovery Planning & Execution: The importance of managed services is that they have experts who can guide you through disaster recovery planning, leveraging past experience and industry knowledge to ensure business continuity and swift recovery.
- Scalability for Future Growth: IT systems need to adapt to changing business needs. MSPs offer expert guidance for seamless scaling up or down during growth or downsizing, ensuring operational continuity for client confidence.
- Improved User Experience: One of the advantages of managed services is having access to expertise in user experience (UX) design. By analysing user interactions with technology, MSPs can identify areas for improvement and suggest solutions to enhance user experience and satisfaction, such as streamlining internal processes or improving customer-facing applications.
- Streamlined IT Procurement & Management: Scaling IT infrastructure can be complex. MSPs possess tools and processes to simplify this. They develop customised IT standardisation plans, handle employee onboarding efficiently, and leverage procurement specialists to negotiate equipment pricing. This frees your internal IT staff from administrative burdens.
- Enhanced Workflow Efficiency: IT services for financial services help identify areas for improvement and suggest technology solutions to streamline processes and boost overall efficiency.
- Proactive IT Management & Budgeting: MSPs automate IT equipment lifecycle management, licences, and warranties, generating reports for informed decision-making.
- Cost Optimisation: Outsourcing your IT needs to a qualified MSP offers a cost-effective alternative. This approach can free up valuable resources, allowing your team to focus on core business functions like growth and strategic development.
Why Intelliworx for your Managed IT Services
The financial service industry in the UK faces a dynamic technological landscape. Partnering with a qualified MSP can help you streamline operations, enhance security, and ensure compliance – all while maximising efficiency and flexibility. For a comprehensive consultation on the advantages of managed services, book a FREE consultation with Intelliworx, a Microsoft Solutions Partner so you can future-proof your IT infrastructure.
