Through Larry Grant, Field CTO at Presidio

Think about the last time you went to the bank. Chances are, if you’re like the 72% of Americans who prefer using a mobile banking app, it’s been a few years. Despite this shift to mobile banking, nearly half (46%) of consumers are concerned about being hacked, which is a customer experience issue that could cause friction with your customers and lead to fewer transactions through the services mobile banking.

To ensure the future of mobile banking, financial institutions must focus on providing a seamless and secure user experience. Ultimately, this forces banks to become more digitally progressive and build consumer trust by implementing strong cybersecurity protocols, moving away from legacy apps that slow down mobile experiences, and migrating to the cloud. to further modernize the infrastructure.

Below, we’ll explain how exactly banks can become more digitally progressive.

Strengthen cybersecurity to build digital trust

Undoubtedly, the first step in building customer confidence is to embed security measures throughout the cyber environment. Cyberattacks against banks are on the rise as research shows that 63% of financial institutions suffered an attack in 2021. These attacks can have devastating consequences as the average cost to repair a data breach is $5. $72 million.

To help prevent and manage cyberattacks, banks need to invest in a strong cybersecurity posture. A large-scale cybersecurity framework should include managed detection and response, incident response, and threat and vulnerability management that identifies and alerts your systems to begin eliminating threats.

By leveraging cloud-native resources, we can go deeper into secure environments through micro-segmentation practices. By limiting the blast radius of a potential breach and developing an appropriate zero-trust solution, we can stop attackers at the edge, prevent breaches, and protect information.

In addition to deploying strong cybersecurity systems, all employees working directly with customer data should receive cybersecurity training to understand the protocols for reporting a data breach and how best to handle customer data. Your employees are the first line of defense for customers and they share the responsibility of protecting your customers’ data. This type of employee training should be continuous, where employees are updated and retrained whenever new protocols, updates, and requirements are implemented.

Say goodbye to legacy systems

While a strong cybersecurity strategy is essential to building and maintaining customer trust, you also need to create a strong mobile environment for customers to transact and conduct business; mobile banking experiences need to work seamlessly with as few technical delays as possible.

And the best mobile experiences are built in the cloud.

However, despite being early adopters of cloud technology, many financial institutions still rely on outdated legacy systems to power their business. Relying on legacy systems to power mobile banking experiences not only causes user experience issues, such as loading time delays or glitches, but it can also prevent banks from innovating or upgrading. large-scale applications. If legacy systems are in place, you might run into interoperability issues when trying to add new software to your technology stack.

Now is the time to finally leave your legacy mainframe and retire your corporate databases. Modern cloud solutions leverage horizontal scalability to improve both performance and resiliency. As applications are re-engineered into microservices, a monolithic database becomes a drawback. The integration of new data management solutions including SQL, NoSQL, Columnar, Graph, Object and more, introduces new options to streamline operations. True adoption of DevSecOps, bringing accountability for new solutions closer to developers for support, maintenance, patching and improvement.

Saying goodbye to legacy systems and modernizing your infrastructure can make it easier to deliver a strong customer experience and maintain a competitive advantage. Most often, modernization starts with migrating to the cloud.

Leverage cloud technology to modernize your infrastructure

Cloud technology allows you to design systems that are easily adaptable and expandable, so that all transactions run smoothly. For companies migrating to the cloud, you must first consider your specific business needs and the investment you are willing to make. This should include identifying where you are currently on your cloud journey, your goals for moving to the cloud, and the type of cloud technology you want to use (hybrid, on-premises, public, etc.).

While on-premises private clouds can help improve levels of automation, it’s public cloud offerings that deliver new capabilities at scale. This can be very important as applications are redesigned to be more cloud-native using more microservices and event-driven implementations. The ability to scale horizontally to explode on demand as needed is critical to delivering the best customer experience. A fast, responsive and self-healing mobile app builds customer trust and increases brand loyalty.

Migrating legacy applications is usually the first step in adopting cloud services. There are important architectural differences to consider to support new deployment methodologies, scaling, and patching. It’s helpful to ask an outside vendor to help you or your IT team evaluate each approach and determine which solutions best meet your needs. Not all applications are created equal and more often than not each solution must be customized to meet the specific needs of the application and organization.

When it comes to staying compliant, cloud technology gives you more flexibility to adapt and meet compliance standards as they change. In fact, more than half of IT professionals who work in financial services have found that cloud technology helps with compliance. For example, instead of a complete overhaul of systems, cloud technology is updating itself by implementing standards such as ISO 27001 or SAS 70 to comply.

Additionally, the adoption of cloud technology facilitates the integration of machine learning (ML) and artificial intelligence (AI) into existing platforms. AI can be used to improve functions throughout the banking journey, from backend applications to customer service. For example, AI chatbots can help a customer navigate online accounts, re-login if they’ve forgotten their password, and even sell a new financial service. Conversely, on the backend, AI can help banks identify instances of fraud or suspicious activity. We even see many financial institutions implementing AI/ML for managing market funds. This can allow them to outperform legacy fund managers, adapt quickly to market changes, and predict future trends more accurately.

While the mobile app allows customers to manage their portfolio, integration with modern omnichannel solutions is essential. The customer experience should be seamless, whether on a mobile device, tablet, PC/website, automated AI bot, automated phone, human phone, or in person. Well-integrated and modernized systems build trust and provide a better and seamless experience for a customer.

As the financial services industry increasingly depends on delivering exceptional mobile experiences, it must move away from legacy systems and embrace modern technologies like the cloud to grow, innovate, and serve customers.

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Larry is currently Field CTO, Cloud Advisor at Presidio, where he provides guidance, mentorship, and confidence building to clients on their journey to the cloud. Previously, Larry served as Vice President, Chief Architect and Cloud Specialist at companies including Vanguard, VMware, EMC and Oracle. Early in his career, Larry served as VP of IT and Chief Technologist for a billion dollar startup, Talk America, also known as AOL Long Distance. In 2005, he received InfoWorld magazine’s Top 25 CTO award and Oracle’s CTO of the Year award. Larry has also received numerous President Club awards and other honors throughout his career.

Larry is a gamer at heart and develops PC, Xbox and PlayStation games as a hobby. Larry and his wife of 35 years have 3 adult children and a granddaughter.

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