Why the Banking & Finance sector needs IT more than Marketing

Recent research by PwC and the Confederation of British Industry (CBI) reveals that banking and financial sector firms are to increase investment in IT by around 72% at the expense of Marketing and other functions.

The research suggests that 59% of businesses in the sector are feeling more optimistic now than they were three months ago, with a third reporting an increase in business volumes and 37% of them expecting further growth over the next few months. Their focus going forward will be on sales to their current customer base and on improving efficiency.

This drive to streamline their processes and overheads will undoubtedly lead many of these organisations to start by scrutinising their IT infrastructures and data storage resources. They’ll be looking for any ‘quick wins’ to reduce costs and eliminate waste in what they already have.

This ‘taking stock’ is a vital step as it prepares the IT environment for further system additions and helps the organisation work out where best to spend their increased budget for maximum ROI.

Storage and its associated cost is likely to be a key area of focus. A large proportion of infrastructure assessments carried out with our Storage Fusion Analyze software reveal significant amounts of reclaimable storage. To put this into perspective, even in an environment of 100PB where very little reclaimable storage was uncovered, this still equated to 1.5PB of unused storage capacity serving no purpose but still contributing to costs and affecting the bottom line.

We’re also seeing an increase in the number of organisations implementing ‘show back’ or ‘charge back’ processes. This is where the organisation’s departments or business units are ‘charged’ for the amount of storage resource they are allocated. Placing this level of accountability for IT spend at the door of unit heads is shown to break the cycle of endless demand/purchase of storage capacity. In turn, this leads to better efficiency, improved ROI and less spend.

Alongside IT ROI and financial efficiency, the other concern keeping business leaders in this sector awake at night is data and IT security. Our customers are relying on frequent, fast turnaround analytics to help them uncover potentially serious configuration errors within the IT infrastructure. Left uncorrected, these errors – such as single path LUNs or unsynchronised replication – could severely compromise data security, leading to serious consequences and potentially eye watering financial loss, not to mention widespread reputational damage.

To find out more about using Storage Fusion Analyze for charge back reporting and network security, get in touch with us.

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