{"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":"

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How financial services can succeed in hybrid and multi-cloud environments<\/span><\/h2>\n

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\u201c[The financial industry is] facing rapid and significant changes\u2026Industry changes include Open Banking, neo-challenger banks and non-traditional financial institutions competing to serve customers. We also see significant changes in computing capability associated with cloud computing and agile delivery methodologies.\u201d<\/em><\/h3>\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

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2023 State of Multi-Cloud Identity Report<\/strong><\/h3>\n\t\t\t<\/div>\n\t\t\t
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What are the identity challenges of traditional banks?<\/h2>\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

The challenge of technical debt<\/h3>\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

The challenge of customer experience<\/h3>\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>\n

Related reading: <\/strong>Identity Orchestration \u2014 the Recipe to Tearing Down Identity Silos?<\/strong><\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”s3″][vc_column][vc_empty_space height=”30px”][vc_column_text]<\/p>\n

Distributed multi- and hybrid cloud identity solutions<\/h2>\n

Banks need to manage identities across several clouds and on-premises in a multi-cloud or hybrid cloud configuration. Access policies must be consistent across this hybrid environment.<\/p>\n

Moving applications to the cloud usually requires rewriting their code to support the cloud\u2019s identity system. This is time-consuming, costly, and resource-intensive work.<\/p>\n

Banks can slash operational costs and boost customer experience by modernizing to the cloud with a distributed identity model.<\/p>\n

A distributed identity model lets you leverage identity and access policies where they already exist \u2014 in multiple clouds and on-premises. You can automatically manage both sets of identities and transition from legacy identity systems at your own pace.<\/p>\n

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Figure 2 Migrate Apps without rewriting them to save time and expensive engineering resources.<\/p><\/div>\n

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Maverics delivers a secure and user-friendly customer experience<\/h2>\n

To successfully modernize, you\u2019ll need to use identity data where it already exists. You\u2019ll also need to orchestrate the customer experience of onboarding and accessing applications.<\/p>\n

Strata\u2019s Maverics Identity Orchestration platform<\/a> is a modern distributed identity system that takes a distributed approach to identity management. Maverics isn\u2019t another single sign-on (SSO) system or Identity Provider (IdP). The orchestration platform is a new technology that eliminates the most difficult multi-cloud challenges.<\/p>\n

Maverics reaches across multiple identity domains and cloud service providers. It integrates identity systems that don\u2019t play well together to make policies, APIs, and sessions work as one. It also lets you orchestrate users\u2019 access to your legacy applications without rewriting any code.<\/p>\n

With Maverics, your financial institution can afford to invest in secure customer experiences and digital transformation initiatives.<\/p>\n

Maverics adds value to your financial services institution by:<\/p>\n