5 Reasons Why Banks Need Data Backup Services in Minnetonka
When an incident disrupts a bank's operation, the financial institution could suffer from having disappointed clients, prolonged downtime, and expensive recovery costs. But what's worse is that the disruption may not be limited to the bank itself. It may also disrupt the entire financial market. Naturally, you would not want your bank to be the next victim of a cyberattack and create havoc in the market. This is why data backup services in Minnetonka are critical IT investments.
There are also five main reasons why you should get professional online backup services. These include the following:
1. Hackers target 90 percent of banks using ransomware.
Around 90% of banks and similar financial institutions have become prime targets of ransomware attacks in the last few years. The same institutions and even the industry, as a whole, get attacked 300 times more than other business sectors. An American financial institution has to fend off over a billion hacking attempts.
Unfortunately, many of these attempts have succeeded. Cyberattacks have cost the banking industry $18.3 million in 2018. The year before that, companies in the financial services sector lost a whopping $16.8 billion to cybercriminals. If you don't want to be among the companies contributing to this massive loss, it would be practical to get data backup services in Minnetonka now.
Financial institutions that have been safeguarding their clients' money for years have to step up with new technologies to fight off cyberattacks. They have had to update their data software to prevent ransomware attacks and invest in online backup services in case an attempt succeeds.
2. Banks who can't recover from disasters quickly may not survive at all.
Like any other business, financial institutions have to make a quick recovery after getting hit by a disaster, or it would be too late for them. Even if you have a considerable IT budget but don't have reliable data backup services in Minnetonka, you might still fail. Larger banks may have enough financial backing to help them overcome the aftermath of a disaster, but smaller banks might be put in a precarious position. If you belong to the latter, it would be best to be proactive and invest in data backup solutions.
3. Banks deal with extremely sensitive data.
Similar to how the authorities now strictly regulate data usage in the healthcare industry, the same applies to the financial sector because of the sensitive data both industries are handling. Banks regularly handle customers' confidential information, such as names, social security numbers, addresses, and financial records. Aside from data backup services in Minnetonka to protect the banks' operation in case of a ransomware attack, protection against any form of a data breach must be leveled up as well. Even rumors of an attack are enough to ruin a bank's reputation and lose the customers' trust.
4. Customer confidence plays a huge role in customer retention.
Bank customers are understandably jumpy and sensitive if they notice signs of irregularities in the institution's dealings with them. Think about how customers usually panic when they fail to access their accounts, even if there was announced system maintenance or an official statement explaining a sudden outage. So, imagine the customers' reaction if you got breached and did so without proper data backup services in Minnetonka. This is a good enough reason for customers to feel disappointed and scared to the point that they'd switch banks.
5. Disruption due to disasters may ruin market confidence in the bank.
Aside from the disaster's negative impact on your bank, the disaster's aftermath may spill over to the outside, particularly the investment and financial markets. Customers may choose to keep their money instead of entrusting them to banks and all because of lost confidence after a breach or a perceived security issue.
All these five reasons should justify the need for online backup services. Such services should be a part of your business continuity plan, so you can get back to regular operations after a disaster, protect yourself from future attacks, and keep your customers' confidence and loyalty for years to come. These benefits are more than enough to make you reconsider your IT investments.
Network Medics
If you need data backup and recovery systems for your financial institution, call Network Medics. We provide data backup solutions as well as a host of other IT services, such as data loss prevention assessment, disaster recovery plan, malware risk assessment. If you are interested in how our data backup services in Minnetonka can help your bank survive in a world full of cybercriminals and other disasters, let our skilled professionals help. We also offer a free assessment, too. Call us at 612.315.7160 to schedule one now or fill out the web form on our website. We will show you how we can assist you!
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