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Prioritize operational resiliency to reduce payments downtime

by xyonent
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According to IBM’s Cost of Data Breach Report, the average business loss cost due to a data breach was $1.3 million in 2023. With the rapid adoption of real-time payments, downtime in payment connections can pose a significant threat. This downtime can have a negative impact not only on a company’s reputation but also on the global financial ecosystem.

This is why it is paramount that financial companies adopt a robust infrastructure that is integrated across multiple environments, including cloud, on-premise and edge, to address their resiliency needs.

Resilience helps financial institutions build trust with customers and regulators

Customer retention is critical to any business strategy, and maintaining customer trust is key to the success of a financial institution. We believe that companies that prioritize resilience demonstrate a commitment to providing a seamless experience for their customers, even when disruptions occur.

Financial firms not only need to maintain the trust of their customers, but also that of regulators. Regulations continue to grow around the world, such as the Digital Operational Resilience Act (DORA). DORA is a European Union regulation that aims to establish technical standards that financial institutions and their critical third-party technology service providers must implement in their ICT systems by January 17, 2025.

DORA requires financial institutions to define the business recovery processes, service levels and recovery times that are acceptable to their business across all processes, including payments. Traditionally, this has required covered financial institutions to evaluate their cybersecurity safeguards.

To meet customer and regulator demands, it is critical that financial institutions be proactive and strategic in developing a coherent strategy for modernizing their payments infrastructure while keeping resilience and compliance top of mind.

How IBM helps clients improve payment resilience

As the need for operational resiliency grows, more and more businesses are adopting hybrid cloud strategies that store data across multiple environments including cloud, on-premise and edge. Developing a workload placement strategy based on the uniqueness of a financial institution’s business processes and applications can help optimize the output of these applications and ensure 24/7 service continuity.

IBM Cloud® remains committed to providing clients with an enterprise-grade cloud platform that delivers the resiliency, performance, security and compliance mandates. IBM Cloud also supports mission-critical workloads and meets evolving regulations around the world.

To accelerate cloud adoption in financial services, IBM Cloud for Financial Services® was built with input from and for the industry, with security controls built into the platform aimed at helping financial institutions minimize risk as they maintain and demonstrate compliance with regulators.

With nearly 500 industry experts worldwide, IBM Payments Center® expertise can guide clients on their end-to-end payments modernization efforts, and clients can take advantage of payments-as-a-service, including checks as a service, to help them leverage the benefits of a managed, secure, cloud-based platform that can scale up and down to accommodate changing electronic payment and check volumes.

IBM’s rapid connectivity capabilities in IBM Cloud for Financial Services increase resiliency, and with IBM Cloud’s multi-zone regions, you can keep your data secure and ensure business continuity, even in the event of advanced ransomware or cyber attacks.

IBM® helps you manage and build resilience in a highly interconnected payments ecosystem. Partner with IBM to reduce downtime, protect your reputation, and maintain the trust of your customers and regulators.

See how IBM can help your payments journey

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