Corporate Blog


Top Issues Facing the Financial Services Industry


The recent “Great Recession” has caused turmoil across the country for consumers and businesses alike. The financial services industry has been especially hard-hit. Although financial institutions deal with recurring industry issues every year, they now operate in a new economic context after the financial crisis.

Some of the issues financial institutions face today include:

  • Promoting growth and sustaining profitability in an environment with low interest rates
  • Rebuilding asset quality and strengthening capital positions
  • Developing new and reliable sources of revenue
  • Increasing the business value of customer relationships, especially when customers have become more demanding
  • Restoring public confidence in the industry
  • Competing with aggressive, innovative non-traditional competitors
  • Incorporating a risk management culture into daily operations

On top of these challenges, financial institutions must deal with regulatory issues, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act. In the aftermath of the financial crisis, regulators continue to implement risk management reforms, like Dodd-Frank, that are designed to create greater transparency and stability in the global banking system. This new environment changes how financial institutions run their businesses and especially how they measure and manage risk.

Technology can help banks and other financial institutions address these industry issues. However, keeping up with technological innovation presents a challenge by itself. According to a PwC CEO Survey, nearly 60% of industry leaders view the speed of technological change as a threat to their growth prospects.

The rapid shift in technology and customer expectations require financial institutions to address projects such as:

  • Mobile Banking – Financial institutions have to develop and implement new digital delivery strategies to remain competitive. At a minimum, they must incorporate mobile banking as a regular delivery channel.
  • Next-Generation Platforms – Many financial institutions rely on legacy systems to conduct operations. To address the issues facing the industry, financial institutions need to quickly migrate their old technology architectures to next-generation capabilities. Viewing new technology as a strategic growth investment rather than an operational expense will demonstrate the value of IT systems throughout an organization.
  • Cyber Security – The PwC CEO Survey found more than 70% of industry leaders believe cyber insecurity is a threat to growth. The ongoing news reports of data breaches at retailers highlight the danger all businesses face.

CyrusOne’s colocation solutions are designed to accommodate the diverse requirements of financial institutions and help provide a strong foundation for industry challenges.

 

Data Centers Ramp Up For Federal Risk & Authorization Management Program

Federal Cloud adoption is on the rise thanks to FedRAMP Authorization. | The big buy-in… MORE >

The Government Is Making A Federal Case For Data Centers

Federal government agencies face many of the same challenges enterprise organizations face. The top priority,… MORE >

Data Centers for Enterprise: Boldly Go Where No Centers Have Gone Before

Bigger companies have bigger problems. It goes with the territory. These enterprise-based challenges permeate all… MORE >

Cloud Connectivity Reaches New Heights For Data Centers

Two heads are better than one. So are two clouds. That’s the lesson cloud service… MORE >

Unlocking Secrets to Compliance & Security in a Financial Data Center

Years ago, when someone asked if your money was safe, it conjured up images of… MORE >

Financial Firms are Firming Up Their Data Centers

Bankers, lenders, traders, lend me your ear. Financial institutions of all kinds are facing a… MORE >

Have You Realized the Potential of Data Center Cloud Connectivity?

Companies can leverage cloud interconnectivity with greater efficiency, and tap into the fabric of cloud… MORE >

Cloud Data Centers are Bursting with Connectivity Capabilities

What happens when clouds communicate with each other? What if you need to tap into… MORE >

1 of 11 >