{"id":1131,"date":"2022-10-06T23:45:44","date_gmt":"2022-10-07T06:45:44","guid":{"rendered":"https:\/\/www.strata.io\/?p=1131"},"modified":"2024-04-09T11:41:43","modified_gmt":"2024-04-09T18:41:43","slug":"multi-cloud-identity-management-finserv","status":"publish","type":"post","link":"https:\/\/www.strata.io\/blog\/identity-access-management\/multi-cloud-identity-management-finserv\/","title":{"rendered":"Multi-cloud identity management for financial services"},"content":{"rendered":"
[vc_row][vc_column][vc_column_text]<\/p>\n
[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_row_inner el_class=”call-out”][vc_column_inner][vc_empty_space height=”30px”][vc_column_text]<\/p>\n
Royal Bank of Scotland<\/a>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row el_id=”s1″][vc_column][vc_empty_space height=”60px”][vc_column_text]Traditional banks and financial services are facing pressures on two fronts: keeping IT costs down and competing against neobanks and FinTechs. In both cases, one central theme keeps surfacing. Customers expect banking apps to provide better onboarding and more personalized experiences.<\/p>\n These banks need to modernize their identity systems and undergo digital transformation. But they\u2019re blocked by aging infrastructures, applications, and identity data management strategies.<\/p>\n Let\u2019s look at the most common identity challenges for banks. We\u2019ll also look at a multi-cloud solution that addresses the difficulties of modernizing for the cloud. This solution will help you to deliver a better customer experience and to compete with neobanks.<\/p>\n Traditional banks face several challenges related to identity and access management (IAM). Here\u2019s a quick look at the biggest headaches for financial services\u2019 and banks\u2019 IT teams.<\/p>\n Financial services are seeking ways to overcome several technical challenges. These are the most common difficulties traditional banks face.<\/p>\n Modernizing core banking systems.<\/strong> Banks have put modernization on the back burner for years. Now they\u2019re feeling the heat as the Open Banking initiative<\/a>, and other advances force banks to update technologies and infrastructures.<\/p>\n Costly operations.<\/strong> Banks are under constant pressure to reduce operational costs, but maintaining legacy systems makes it increasingly difficult. Updating code may be impossible if the app\u2019s developer is long gone.<\/p>\n Out-of-control IT spending.<\/strong> Gartner estimates that IT spending in the banking and investment services market<\/a> will reach over $760 billion by 2025. If financial institutions can reduce IT spend, they will directly reduce CAC and maintenance costs.<\/p>\n Legacy banking systems are siloed<\/strong><\/a>.<\/strong> When you have multiple versions of legacy software, they don\u2019t play well together. These systems are nearly impossible to share identity data, including authentication and authorization information.<\/p>\n Complex interlinking systems.<\/strong> Applications are interwoven in complex ways, and identity information is a part of that entanglement. Core banking applications are incredibly convoluted, and API integrations are expensive and time-consuming to implement.<\/p>\n Increased regulation.<\/strong> Government regulations are focusing more on identity data quality and utilization. But identity data becomes more siloed as banks and financial institutions adopt a multi-cloud strategy<\/a>. This model has security implications that must be addressed as banks move to the cloud.<\/p>\n As technical debt mounts, financial institutions have difficulty keeping up with increasing customer expectations.<\/p>\n Today\u2019s banking customers look for better privacy controls, real-time transactions, 24\/7 availability, personalized offerings, and a low friction experience. Newer mobile banking applications offer chat and other personalized features to serve customers better.<\/p>\n2023 State of Multi-Cloud Identity Report<\/strong><\/h3>\n\t\t\t<\/div>\n\t\t\t
What are the identity challenges of traditional banks?<\/h2>\n
The challenge of technical debt<\/h3>\n
The challenge of customer experience<\/h3>\n