Today’s financial firms and their customers generate unprecedented amounts of data, making the financial services industry (FSI) one of the most data-intensive sectors. In this highly digital age, customers manage nearly all of their financial activity using mobile apps, digital banking platforms, and online payment systems. As a result, every financial organization has begun to accumulate tremendous volumes of information as business processes, customer interactions, and financial transactions all move to digital mediums.
These digital disruptions mean that financial institutions cannot resist digital innovation; those that do will risk customer loyalty, competitive advantage, and regulatory compliance. A recent analysis from McKinsey suggests that digital laggards could see up to 35 percent of their net profit eroded, while those that use digital technologies to automate processes, create new products, improve regulatory compliance, and transform the customer experience could increase their profits by 40 percent or more.
The explosion of digital data has introduced a host of new challenges to financial firms, and many have had to reevaluate their data archive management strategies. More than any other industry, financial organizations must be careful to manage and dispose of information in a consistent, safe, and defensible manner, both to protect sensitive customer data and to ensure compliance with regulations. Facing a variety of strict regulatory requirements including SEC, Dodd-Frank, FINRA and more, financial services firms are seeking new, massively scalable storage architectures that can help them manage risk as well as lower storage costs.
Storage solutions are undergoing an IT modernization phase as traditional storage systems quickly become ineffective and cost-prohibitive in the face of tremendous data growth. High performance computing (HPC) solutions based on object storage are emerging to help financial organizations support the growing demand for data storage and confidently comply with regulations.
Investing in an enterprise information archiving solution can help financial firms improve their data archive management processes in a number of ways:
- Manage volume – Data generation will only continue on an upward trajectory, so financial firms must invest in storage architectures capable of scaling to accommodate data volumes both now and in the future. Risk-compliant archive solutions can help organizations meet ever-increasing storage demands and eliminate data siloes by storing all information using a single storage repository.
- Ensure compliance – By leveraging the private cloud for storage of complex archival data, organizations can meet ever-evolving regulatory compliance and governance rules mandating data archiving and retention.
- Transform TCO – Object storage solutions are cost-effective and can leverage an enterprise’s existing storage architecture. Superior performance and ease of use removes the need for constant in-house IT management, helping to free-up IT staff resources and lower overall total cost of ownership (TCO) for new storage architectures.
The rapid proliferation of digital mediums and unprecedented data growth are forcing financial firms to adapt their storage approaches so they can more intelligently and easily manage volume and regulation both now and in the future. Object storage solutions can help financial firms maximize storage density while lowering TCO, and create the right balance of simplicity, flexibility, and performance required for today’s financial data archive management storage needs.
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