Finance Monthly September 2019 Edition

52 www.finance-monthly.com FINANCIAL INNOVATION & FINTECH - DATA RECOVERY WHY TODAY’S CHALLENGER BANKS NEED TO ABANDON THE TRADITIONAL APPROACH TO DATA RECOVERY TSB’s spate of outages over the past year caused damage that extended far beyond the IT team, affecting every part of the company and its wider reputation. Over 80,000 of their customers sought greener pastures elsewhere, incurring costs for TSB in excess of £330m, and putting them towards their first-ever loss. While the losses they experienced were intense, IT failures like this one will likely continue to plague banks, especially since external threats posed by cybercriminals are at an all-time high. Research from security firm Carbon Black found that over two-thirds of financial firms have reported an increase in cyberattacks in the past 12 months, as cybercriminals increasingly chase after high-value targets that are rich in personally identifiable information. Challenger banks, which are free from the baggage of residual legacy IT systems that traditional banks have, are also still impacted by outages. Monzo and Revolut both fell foul of high-profile IT failures in the past few months, with customers taking to Twitter and other social channels to amplify their displeasure with the situation. And while neither bank has fallen out of favour just yet, customers won’t tolerate these IT hiccups for long. Consumers have become accustomed to a high standard of service due to their experiences across multiple industries, so today’s banks are now expected to provide the same 24/7, always-on access to data. This means they don’t take kindly to IT slip-ups that affect their ability to access their money or financial information. The stakes to stay online are higher than ever before. Traditional data backup and disaster recovery is no longer enough, as even a minute-long outage is not acceptable. Further, UK customers are looking to challenger banks to provide an outstanding level of customer service and convenience not available from the banking old guard. But, Paul Brunyee, EMEA Pre-Sales Director at Arcserve www.arcserve.com

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