Marketplace News Author: Ben Edmond, Chief Revenue Officer
The financial sector is among the most fast-paced and rapidly evolving verticals in today’s global economy. Like most other industries, banking institutions of varying sizes rely heavily on network connectivity for handling some of their most critical and sensitive tasks. The ability to expand a customer base and generate new revenue streams smoothly and rapidly through ATM and local branch additions is imperative to enhancing market competitiveness in the banking sector. Bank networks must be able to rapidly scale to accommodate new secure links between banks and ATMs, regardless of location, and also provide infrastructure for interbank networking.
Self-service banking at ATMs
Once used almost entirely for cash withdrawals in multiples of $20, many ATM machines are now fully connected service self-service channels that allow customers to pay bills, open new accounts, deposit checks, apply for loans or talk to virtual tellers. ATM branch requirements include a security element and a high availability element.
On line and Mobile Banking
Of course, many consumers still prefer the tried-and-true model of doing their banking at a local branch. Today, many of these branches provide more than simple management of checking and savings accounts; they have expanded their offerings to include retirement planning, investment strategy, wealth management and more. For community retail banks, the responsibility of keeping intruders from accessing confidential customer information is mandated by law. The network perimeter layer has historically been the focus of protecting a private network and is still essential for keeping intruders at bay and providing detection of possible intrusions. Adding these services means local branches require a scalable network infrastructure that can handle growing traffic and new applications.
Voice & Telephony Needs
Intra-office communications can be a major expense in banking, where voice communication is critical to continuity and enables faster service for customers. Private telephony networks that circumvent existing telephony networks and high international call rates can reduce expense. To ensure reliability and quality advanced CoS features that prevent VoIP calls from becoming compromised by other banking communications are needed
It’s fairly obvious that financial information is incredibly sensitive, whether it belongs to a major financial corporation or a single individual. The financial sector faces robust regulatory requirements and the nearly constant threat of hackers, meaning a secure network solution is a necessity. As the amount of data being transferred continues to grow, so, too, will the importance of network security.
The banking sector requires a secure and reliable communication infrastructure to ensure operational efficiency. With widely distributed branches, local offices, and ATMs, often located in rural and remote areas lacking infrastructure, banking and financial organizations are turning to their own private networks as a preferred solution for connecting their dispersed locations under one core platform. In this environment of growing mobility, heightened competition and customer loyalty, that a gradual replacement of core banking systems is predicted to pick up again in coming years, as banking institutions are updating and replacing core banking systems and networks to improve their ability to compete in the new dawn of banking.
For more information about how Global Capacity’s network solutions can benefit the financial industry, click here.