Prioritize operational resiliency to reduce payment downtime
According to IBM’s Cost of a Data Breach report, the average cost of lost business due to a data breach was $1.3 million in 2023. With the rapid emergence of real-time payments, downtime in payment connections can pose a serious threat. This downtime can be damaging not only to a company’s reputation but also to the global financial ecosystem.
For this reason, it is critical for financial companies to support their resiliency requirements by adopting a robust infrastructure that is integrated across multiple environments, including cloud, on-premises, and the edge.
Resiliency helps financial institutions build trust with customers and regulators.
Retaining customers is critical to any business strategy, and maintaining customer trust is key to the success of any financial institution. We believe that companies that prioritize resiliency are demonstrating their commitment to providing consumers with a seamless experience when disruption occurs.
In addition to maintaining customer trust, financial companies must also maintain the trust of regulators. Regulations continue to increase globally, including the Digital Operational Resilience Act (DORA). DORA is a European Union regulation that aims to establish technical standards that financial institutions and significant third-party technology service providers must implement in their ICT systems by January 17, 2025.
DORA requires financial institutions to define acceptable business recovery processes, service levels, and recovery times for businesses throughout the entire process, including payments. Traditionally, this has led agencies to evaluate their cybersecurity safeguards.
To meet the needs of customers and regulators, it is important for financial institutions to engage proactively and strategically in creating a cohesive strategy to modernize their payments infrastructure by prioritizing resilience and compliance.
How IBM helps clients address payment resilience
As the need for operational resiliency increases, enterprises are increasingly adopting hybrid cloud strategies to store data across a variety of environments, including cloud, on-premises, and the edge. By developing a workload placement strategy based on the uniqueness of your financial institution’s business processes and applications, you can optimize the outcomes of those applications to sustain 24/7 service.
To accelerate cloud adoption in financial services, we built IBM Cloud for Financial Services® on the industry and industry insights. With security controls built into the platform, the goal is to help financial institutions minimize risk while demonstrating compliance with regulators.
With approximately 500 industry practitioners globally, the expertise of IBM Payments Center® provides guidance to clients on their end-to-end payments modernization journey. Customers can also use Payment-as-a-Service services, including Checks-as-a-Service, which can help them access the benefits of a managed, secure, cloud-based platform that can scale up and down to meet changing electronic payment and check volumes.
IBM’s rapid connectivity capabilities in IBM Cloud for Financial Services enable resiliency and use IBM Cloud multi-zone regions to keep your data secure and support business continuity in the event of an advanced ransomware or cyberattack.
IBM® can help you navigate the highly interconnected payments ecosystem and build resilience. Work with us to reduce downtime, protect your reputation, and maintain the trust of your customers and regulators.
Find out how IBM can help you with your payments journey.
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