Investment banking firms and other financial services continually face pressure from all directions. Regulators enforce strict compliance rules that drain staff resources. Customers demand a seamless, innovative customer experience which forces financial firms to accelerate their rollout of new products and services.
To effectively respond to these pressures, investment banking firms are turning to external IT services. Internal IT teams spend too much time on repetitive daily tasks and putting out fires to efficiently manage complex, siloed systems, and infrastructure, making it difficult to adhere to industry regulations, manage vendors, and bring new offerings to market.
Managed service providers (MSPs) can help out on all fronts – security, compliance, seamless customer experience, new service deployment, and vendor management. An MSP refers to an IT service company that offers managed services to organizations and end users on a proactive basis. They are responsible for hosting and managing servers, client networks, and specialized applications. Below are five ways an MSP can help out your firm.
1) Increased Cybersecurity
Investment banking firms remain prime targets for cybercriminals, with many hackers setting their sights on smaller firms that do not employ the sophisticated defenses of larger financial enterprises. What’s more, it is getting easier and cheaper for cybercriminals to access the latest attack technologies such as ransomware-as-a-service (RaaS). This makes responding to threats a constant challenge.
Outsourcing some or all of your IT services could prove beneficial because many MSPs employ the latest, state-of-the-art data security systems. Furthermore, reducing the tasks that your internal IT team handles on a daily basis allows them to focus on enhancing your systems’ security and keep attackers at bay.
2) Increased Uptime
An MSP can help you reduce risk of downtime, compliance issues, and data breaches by monitoring your IT environment to help you implement efficient processes. If you choose to rely more on vendor outsourcing, your MSP will provide guidance on your vendor selection and how to securely integrate them into your network to enhance productivity.
3) Reduced Management Burden
MSPs have the expertise, staff, and sophisticated technology required to immediately take over or assist with your internal IT team’s routine tasks. This leaves your current support staff with more time to focus on strategic innovations and initiatives aimed at improving customer experience, all while reducing your bank’s management burden.
4) Disaster Prevention
Disaster prevention is the ultimate aim of MSPs. They take proactive security measures to prevent disasters such as data loss or unauthorized access. They also keep your network and systems prepared for any worst-case scenarios, providing backup services to help you restore your data after loss. By using data prioritization and classification, monitoring, and staff awareness and training, an external MSP constantly focuses efforts securing your critical data.
Sometimes you may need to scale up your business during peak season or scale down during the low season. An in-house IT team makes scaling flexibility difficult since you may need to either hire additional temp staff or lay off your excess personnel. By outsourcing your IT services, you transfer the scaling process to your MSP. This type of flexibility is good for the investment banking operating environment.
The Bottom Line
The intense pressure coming from stakeholders including customers, budget-conscious executives, and industry regulators necessitates investment banking firms and other financial services firms to seek help optimizing and managing their IT environments. Your firm needs access to a level of technology and knowledge that few companies can afford in-house.
CompassMSP is a reputable provider of comprehensive managed IT, cybersecurity, and private/public cloud services with a focus on the SMB market. Our top-notch comprehensive on-premises and cloud solutions meet your managed IT needs to help you reduce risk and better serve your clients.