Downtime can be disastrous for any business, but it’s particularly crucial for financial institutions to maintain uninterrupted service. In fact, downtime costs businesses an average of $5,600 per minute, according to Gartner.
That’s a staggering figure, and the recent event from a few weeks ago – the Wells Fargo technical issue – demonstrates technology downtime’s impact on financial institutions.
The Wells Fargo Technical Issue
On March 10, 2023, several Wells Fargo customers noticed that deposits and transfers were not reflected correctly in their account balances. This couldn’t have happened at a worse time – during the week of the Silicon Valley Bank collapse – which led customers to speculate that Wells Fargo was also on unstable ground.
As it turned out, Wells Fargo happened to be experiencing technical issues that day, which made this uproar a coincidence. But by then, the event had already inflicted its damage.
Consequences of Outages Like This
Outages like the one Wells Fargo experienced can have several negative consequences for financial institutions, including:
- Customer dissatisfaction and loss of trust – When customers can’t access their accounts or conduct transactions, they become frustrated and lose faith in the institution.
- Reputational damage – Such incidents can tarnish a bank’s image and make it difficult to attract new customers or keep existing ones.
- Potential financial losses for the institution – Bigger banks may be able to withstand a blow like this, but smaller banks are less fortunate and may struggle to recover from the impact of an outage.
Strategies to Avoid Downtime in Financial Institutions
To minimize the risk of technology downtime, financial institutions should consider implementing the following strategies:
- Regular maintenance and updates of IT infrastructure – Keeping systems up-to-date and well-maintained helps to prevent potential issues and outages.
- Implementing redundancy and backup systems – Having redundant systems in place ensures that if one system fails, another can take over, minimizing downtime.
- Proactive monitoring and early detection of potential issues – By actively monitoring systems, financial institutions can identify and address problems before they escalate.
- Robust Cybersecurity – Protecting against cyberthreats is crucial for maintaining the integrity of IT systems and avoiding downtime.
Partnering with managed IT providers for expert support – Managed IT providers can offer additional expertise and resources to help maintain uptime and prevent issues.
Safeguarding Financial Institutions Against Costly Downtime
In conclusion, avoiding technology downtime is essential for financial institutions to maintain customer trust, protect their reputation, and minimize financial losses. By implementing strategies like regular maintenance, redundancy, proactive monitoring, robust cybersecurity, and partnering with managed IT providers, financial institutions can better safeguard against downtime.
Managed IT providers play a critical role in maintaining uptime for financial institutions, and CTSI is here to help with your technology needs. Reach out to us today to learn more about how we can help you avoid costly downtime and ensure the smooth operation of your financial institution.