A credit union's IT infrastructure can rarely keep pace with its growth. At the rate banking is evolving, technology can be outdated only shortly after installation; it's known as the “revolving technology wheel.” Managing the challenges of IT systems and infrastructure can be a cumbersome process for any sized credit union. Consequently, technology wish lists get longer and resources run very thin. As an alternative, many credit unions are turning toward trusted third parties to manage their IT infrastructures in a secure cloud platform.
Such cloud solutions can provide the same network essentials (including servers, storage, network and operating systems) as an on-demand service that offers credit unions access to whatever degree they need. In return for outsourcing hardware, technology management, and IT security and compliance responsibilities to dedicated experts, credit unions gain a more secure operating environment, better business resiliency, more predictable costs, and the freedom and flexibility to focus on member needs.
Security
As financial services move to a real-time baseline with faster payments and new security vulnerabilities, adjusting security and compliance at the same rate has become increasingly demanding. Consider just the critical aspects of maintenance needed to keep systems patched and remediating vulnerabilities, a time consuming and seemingly thankless task. That's in addition to the time spent monitoring infrastructure health and following up with vendors to check on problem resolution. These instances alone can reveal significant cost savings through previously untapped efficiencies, as credit unions that move to an outsourced IT infrastructure can expect to save time in their maintenance schedules.
Business Resiliency
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Whether the credit union is managing the risk of a local power disruption or a widespread disaster, it is important to have a strategy that enables uninterrupted member service. In fact, these scenarios can take place when members need their credit union's support the most. In lieu of putting in place a complete, in-house redundant system – essentially buying double – many credit unions are looking to simply outsource these services. With the rise of digital banking and the need to be available 24/7, more credit unions are looking to the cloud to deliver security and stability in addition to insulating their operations from disruption.
Predictable Costs
Cloud solutions can work on a consumption-based model that gives credit unions the flexibility to scale as needed. All of the network essentials – the servers, storage, network and operating systems – are used as an on-demand service. Rather than purchasing servers, software, data center space or network equipment, credit unions can instead choose to invest elsewhere. This takes the guess work out of how to utilize resources and enables credit unions to bring new products to market with ease, speed and efficiency.
Renewed Member Focus
A credit union's goal is to be relevant in every stage of its members' financial lives. Trusting an experienced and qualified vendor to do what it does best with managed IT and cloud services enables credit unions to allocate valuable resources for what they do best – meeting member needs. Hosting its network services refreshes a credit union's focal point from system maintenance, security and resiliency to more effective member service, support and product availability.
When it is time to update hardware, consider your options. It may be time to let freedom ring.
Matt Riley is group president of the Gladiator team for ProfitStars. He can be reached at 678-461-4620 or [email protected].
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