The article delineates the pressing need for banks to integrate resilience into their operational frameworks amidst increasing technological failures. It outlines six foundational elements for enhancing resilience, emphasizing strategic alignment, critical service prioritization, organizational preparedness, automation, monitoring, and robust infrastructure. The discussion underscores the balance banks must achieve between innovation and reliability to meet customer and regulatory demands effectively.
In the rapidly evolving digital landscape, banks must gain a deeper understanding of technology failures, which go beyond superficial complaints to significant underlying issues that comprise up to 90 percent of failure costs. The increasing frequency of such failures has significant financial and reputational implications, driving the need for resilient banking systems. Despite rising investments in technology, banks in Southeast Asia are facing heightened expectations from both consumers and regulators, challenging them to enhance cyber-resilience as outlined by the Financial Services Authority in Indonesia.
To build a robust and resilient banking ecosystem, organizations must focus on six essential elements: strategic alignment with realistic service availability goals, prioritization of critical services, organizational preparedness with comprehensive management plans, automation integrated with uninterrupted development protocols, holistic monitoring across all operational components, and foundational infrastructure capable of self-isolation during crises. Leading financial institutions exemplify these principles by ensuring end-to-end service monitoring and maintaining substantial resource reserves to weather disruptions effectively.
Ultimately, resilience should not be an afterthought but an integral part of a bank’s strategy to meet the demands of an increasingly complex digital world. By embedding reliability and resilience into their operational frameworks, banks can better safeguard against technology failures and fulfill customer and regulatory expectations effectively.
The article addresses the pressing need for banks to enhance their resilience in the face of frequent technological failures in a digital-first environment. It highlights the gap between current technological investments and the multifaceted nature of technology-related risks, including the costs associated with failures deep-rooted in infrastructure and coding deficiencies. This disparity signifies the importance of establishing robust risk management frameworks to elevate cybersecurity standards and operational resilience, particularly in Southeast Asia where regulatory scrutiny is intensive. As reliance on digital channels escalates, banks are compelled to innovate while simultaneously maintaining stable and reliable services—a balance that is becoming increasingly challenging. The article underscores the critical components necessary to improve resilience, thereby promoting a comprehensive approach to technology management that encompasses both immediate availability and long-term operational reliability.
In summary, the construction of resilient banking systems in a digital era demands a multifaceted approach focused on aligning strategic goals with operational capabilities. Investment in technology should not solely prioritize customer-facing enhancements but also fortify critical backend systems and procedures that support uninterrupted service delivery. As demonstrated by successful financial institutions, employing a comprehensive and cross-disciplinary strategy is essential for mitigating risks and responding proactively to technological disruptions. By prioritizing these factors, banks can position themselves to meet the evolving demands of customers and regulatory bodies with confidence and reliability.
Original Source: www.thejakartapost.com
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