Financial technology services have become essential for today’s highly-connected consumers. The days of stuffing your savings under the mattress have long since given way to a new world of digital financial services that offer a range of choices that would have been unthinkable just a generation ago. Companies that find ways to successfully leverage financial technology services will quickly find themselves with a competitive advantage in the market.
How Financial Technology Services are Changing in Modern Times
Technology has done much to democratize the financial services industry. Where customers once had to work with an established firm or licensed financial planner to manage their investments, today they can simply log onto a mobile app and do it themselves. Adapting their infrastructure to put these tools into the hands of customers has become one of the key challenges facing the financial sector in the 21st century.
Failure to adopt innovative technologies will quickly leave companies at a competitive disadvantage. Just as banks were once in a race to open as many physical branches as possible, today they are working to develop the next generation of consumer fintech that will expand their customer base and provide them with accurate data to make more informed decisions about future strategy.
5 Technology Demands Financial Technology Services Providers Need to Know About
Shift to Mobile First Design
No discussion of fintech trends would be complete without mentioning the profound impact mobile technology has had on the way people engage with financial services. Whether its banking applications that allow customers to manage their finances on the go or innovative daytrading investment apps that provide instant access to financial markets, mobile technology has fundamentally transformed the industry’s IT requirements.
Customers expect services to be accessible via their smartphones, prompting companies to prioritize “mobile first” design when developing new technologies. Even for companies that don’t invest in dedicated mobile apps, failing to make a website mobile responsive is sure to turn away customers who may rely on their mobile devices to learn more about financial services.
Increased Security Demands
As consumers share more of their financial data online, the burden of keeping that data safe from cyberthreats has grown significantly for many companies. Nobody wants to be the next Capital One, which suffered a data breach that exposed the personal information of more than 100 million people in 2019. Considering that 35 percent of all data breaches involve the financial services industry, the concerns are certainly justified.
Organizations need to be aware of how their technology solutions could potentially expose their business to greater risk, whether that risk takes the form of web application and DDoS cyberattacks or the various manifestations of insider threat. Meeting the compliance standards laid out in key regulatory guidelines such as PCI DSS 3.2 and ISO/IEC 27001:2013 can help ensure that newly implemented technologies are up to the task of managing risk on behalf of customers. Colocation data centers can also provide an extra level of physical security when it comes to safeguarding key IT assets.
Primacy of Big Data
Data drives everything in today’s fast-paced economy. Financial services organizations collect and manage huge amounts of data that can help them identify key trends and anticipate potential shifts in the market. Banks and credit card companies have put big data analytics powered by machine learning to work identifying fraud, which can substantially reduce risk for both customers and merchants. The same technology can also help high-frequency traders make even faster decisions by analyzing market signals from diverse sources to gain a more accurate picture of what’s actually happening in financial markets.
Data centers have proven themselves to be effective hubs for this new wave of technologies. Secure colocation facilities can house private servers and the sensitive stored on them while still offering interconnection access to the leading cloud computing platforms that power analytics tools. These hybrid IT environments allow financial companies to meet their data collection, storage, security, and processing needs all at once when it comes to big data capabilities.
The extensive demands placed upon financial services IT infrastructure can be difficult for many organizations to manage. They must not only be able to access the necessary software and applications to handle financial data, but also process that information without the entire network grinding to a halt due to high latency or insufficient bandwidth. While not interchangeable terms, latency and bandwidth are both critical factors in network performance. High levels of latency means sluggish response times, which can be especially damaging for financial services that depend on quick, decisive action. And if bandwidth is too low, not enough financial data will be able to flow smoothly to where it needs to be processed, leaving organizations flat-footed against their competitors.
Since latency is typically a byproduct of distance, placing assets in an edge data center located closer to end users can significantly boost network performance. As financial services companies increasingly incorporate Internet of Things (IoT) devices and mobile technology, having data centers strategically positioned along the network edge will ensure that data moves quickly and easily between where it’s being collected and where it’s being processed. Intelligent monitoring services like vXchnge’s in\site platform also allow colocation customers to monitor their bandwidth usage in real-time to determine when it’s time to upgrade services to accommodate increased traffic.
Innovations in technology continue to put more power in the hands of consumers. This has had profound implications for financial services companies. Where customers once had limited options when it came to services like banking and financial planning, today they have many technology-driven solutions to choose from. If one company fails to meet their needs, the barriers to transitioning to a competitor are quite small. It’s more important than ever, then, for financial services companies to create a compelling and robust customer experience that retains users and makes a positive impact in their lives.
Colocation data centers provide an excellent foundation for today’s digital customer experiences. With high levels of uptime reliability (such as vXchnge’s 100% uptime SLAs), data center environments help to ensure that financial services platforms remain available for customers when they need them. The diverse cloud interconnection capabilities of carrier-neutral facilities also make it possible to build dynamic, responsive platforms that meet existing customer needs while retaining the flexibility to adapt to changes in the market or in consumer preference.
Unlock Your Fintech Potential with vXchnge
With colocation data centers located in key growth markets across the country, vXchnge has the reach and the resources to help financial services organizations build the next generation of fintech applications. Whether they’re designing innovative new mobile apps or looking for a more reliable and secure data solution, companies will find everything they need within our award-winning colocation environment. Thanks to the power of in\site intelligent monitoring, we provide the same level of transparency and control our customers would expect from their own private facility. To experience the vXchnge difference, register today for a free in\site demo or talk to one of our colocation experts about your migration needs.
About Blair Felter
As the Marketing Director at vXchnge, Blair is responsible for managing every aspect of the growth marketing objective and inbound strategy to grow the brand. Her passion is to find the topics that generate the most conversations.