EMC InfoArchive for Financial Services
We are now ten years past the peak of the housing bubble that caused The Great Recession. Those doomsday newscasts about entire neighborhoods being foreclosed were seemingly endless. Layoffs, bankruptcies, and disappearing 401ks happened all around us. We bounced back though. We didn’t bounce back without major changes in policy, just ask anyone that works in financial services. Regulations stymie bank’s ability to lend money and take part in high-profit business like proprietary trading. Many banks are now focusing their attention on survival rather than growth which has rapidly increased M&A activity and value chain focus, particularly because banks are the biggest spenders on IT amongst technology intensive industries.
Why do banks spend so much on IT?
In a sentence, they have to. They are wardens to arguably the most important data that exists. This volume of data grows as banks merge and bring in new technologies to remain competitive. Like any business, customer loyalty is contingent upon how a financial institution keeps pace with the latest trends. This spending married with the costs to maintain legacy systems is enough to send some banks under.
How can banks reduce their IT spend?
I can make this simple too – retire legacy systems that do nothing more than keep a copy of data. Paying maintenance and salary expenses to keep rarely accessed data alive is like running with a parachute. Killing off old systems is easy once you have a migration plan and forward-looking target system architecture plan in place. Once these critical steps have been taken, the ROI discussion in the boardroom will be a piece of cake.
What about the move from one system to another?
It is imperative to build a target system architecture that is built for the future. Before you move data it is critical that you choose the proper data extraction technique. Choosing from among such diverse approaches as table archiving, data record archiving, file archiving and hybrid record archiving means taking into account not only the organization’s current needs, but also trying to predict its future requirements—certainly no easy task.
Flatirons Helped BMO Harris Bank Save $5M Annually With InfoArchive
Flatirons, a fellow member of the InfoArchive Consortium, helped one of their customers save a tremendous amount of money by retiring a large number of legacy applications. BMO Harris Bank had gone through a number of mergers and were left with over 100 legacy applications that were alive in read-only mode. See the video now. Not only did BMO Harris save 5M annually, this allowed them to reallocate funds for future initiatives.
Contact us to see if InfoArchive might be a good fit for your financial institution.