Why doing everything yourself is not a good thing?

Can a 200-room hotel or multispecialty hospital handle all functions with in-house staff? Can a biscuit maker or baker grow wheat and sugarcane, cultivate the produce and bring it to the oven? Is every component in a car made by the manufacturer? If the obvious answer is No, why is it not apparent to Banks they must outsource some services while sticking to their core? This narrative is for those who continue to cling to the Do It Yourself (DIY) era, while the world has moved ahead.

Let’s get started with an understanding of where the domain is currently. As much as we revere and relish the thought of the neighbourhood bank, the pleasantries we exchange with familiar faces, and the occasional chitchat with the branch head, banks of today have become more virtual and less physical. Brick-and-mortar is being overtaken by digital-first, and digital banks launched in the last few years have no plan to start a branch.

All this means less of a chance of a request being attended to in person or a problem at the counter or waiting area spotted and resolved by an observant and intuitive staff member even as the issue arises. The solution, which is already evident and in place, is the automation of services, delivery from a cloud, and enabling customer access from anywhere. However, the rapid pace of transformation has ushered in challenges as well.

With relentless advancement and inevitable change enveloping the ecosystem the questions on the CXO’s mind are, is my Bank’s internal IT team keeping pace, are we serving customers at the speed of thought, are there latent problems that we need to troubleshoot?

Making a case for Managed Services in Banking!

Let’s take Open Banking and Platform Banking as a test case. In Open Banking, the Bank, upon a customer’s request and consent, shares data with third parties through APIs. Platform Banking is a digital marketplace, owned and operated by the Bank or a third party and provides banking and non-banking services with the customer’s consent.

Now that both modes are gaining traction, it is easy to guess that the data load, compliance measures, and security protocol requirements have increased significantly within the Bank’s Core Banking System. The addition of APIs leads to limitations in hardware and database sizing which affects the service levels of digital channels offered by the Bank.

When we have found a vaccine for Covid-19, when we have overcome so many health-related maladies, when we have created cars without drivers, and online branches sans staff, solving the problem of increased load on the IT infrastructure should be relatively easy – provided you tie up with the right provider.

The panacea for today’s fast-growing, tech-led bank is Managed Services. That’s something Modefin excels in, given our ten-year track record in fintech and our sound understanding of software, hardware, customer-focused products, and regulatory requirements (how else could we create as many as 14 unique solutions for digital banking for 65+ banks in 20 countries).

Here’s what we offer in our Managed Services Suite:

  • Application server monitoring
  • Application restart in case of any request made by the bank team
  • Deployment of new releases once confirmed by the bank team on the promotion
  • Log rotation
  • DB Archival – ensuring the archival jobs are executed and creation of new procedures based on the table size
  • Application log analysis in case of any issue
  • Dedicated offshore resources to manage the application remotely to ensure uninterrupted service
  • Resources will report to Bank IT Admin/Nominated person to prioritise the work and convey day-to-day progress
  • Run scripts periodically to check for any suspicious transactions
  • Support – Round the clock dedicated support to ensure timely response and issue fix
  • CR process – All the Change requests (except additional licenses) will be handled by the dedicated offshore team without any extra cost

To answer the question posed in our preamble, almost every industry we spoke about – hotel, confectionery, healthcare, automotive – has adopted Managed Services in some form, where non-core functions are managed by an outsourced provider. It will be our privilege to partner with your Bank and help you say bye to DIY.