Why IT Companies Are Essential in the Financial Services Sector


Information technology is used almost everywhere. In the financial services sector, in particular, IT is virtually indispensable. Imagine the world of banking and other financial transactions operating without computers and the internet. Also, try to visualise how criminals will take advantage of weaknesses in financial systems that rely on traditional processes.

IT companies provide organisations in the finance sector with various solutions to help them operate more efficiently as well as to secure their systems. Many financial businesses rely on third-party information technology services, especially those that have global business activities.

Enabling efficiency

From hedge funds to asset management firms, professional IT services help financial organisations, especially when it comes to data gathering, storage, analysis, and retrieval. As mentioned, many in the finance sector rely on external IT solutions. They prefer to veer away from the establishment of their in-house IT departments for many reasons.

For one, they don’t find it necessary to become experts in the field of IT technology, or they don’t have the right people to handle the job. As such, they turn to professional IT providers that specialise in financial services IT solutions. Instead of training their own IT employees and procuring the necessary equipment, they use virtual solutions.

These solutions are IT services designed to match the operational and regulatory needs of financial companies. They are also customised to suit specific investor requirements. Usually fully-outsourced, these services competently cover all of the information technology needs of banks, insurers, investment houses, brokerages, and other financial service providers.

Moreover, they come with proactive technical support to resolve issues as soon as possible and minimise interruptions. There are remote monitoring and patching specialists as well as remote and on-site consultants available to address problems promptly. A 24/7 service desk may also be set up to make sure that system issues and customer complaints are addressed without delays.

Ensuring security

On the other hand, it also bears emphasising how third-party IT service providers tend to be better in securing the digital assets, information, and systems of those in the financial services sector. They have been in the business of detecting and eliminating cyber threats longer than the IT departments of most financial companies. Thus, it’s reasonable to presume that they are more qualified to handle various kinds of cyber risks.

They know what to do in case attacks such as DDoS target the IT infrastructure of a bank or foreign exchange company. Additionally, they are well-versed with the right cybersecurity systems and measures to deploy best in dealing with the different attack strategies that hound finance companies. These IT providers also handle all software and hardware maintenance, updating, and troubleshooting so clients can focus on more critical tasks for their businesses.

IT and financial companies are likely to remain inseparable in the foreseeable future. More and more companies realise the benefits of managed or outsourced IT compared to having a dedicated in-house information technology team. These are advantages that can be summed up as follows: better efficiency and security.