It would be quite cliché to talk about the significance of business continuity planning for banks, but has IT disaster recovery automation become an inevitable necessity for the banking sector? That would be quite an interesting aspect to look into. Ever since RBI mandated banks to deploy and demonstrate their business continuity and IT DR capabilities, the investment in this area by banks have seen an upsurge.
A disaster or an outage can affect the various services provided by the bank. Typical banking business functions – including ATM services, mobile banking, credit cards, point of sale services, settlement clearing, cash management and treasury – are all interdependent and IT is the key enabler for their smooth and hassle free functioning. Critical IT systems need to be available 24×7 for customer confidence and avoiding business loss. An outage in even one branch can disrupt any of these services leading to flak from the customers and loss of reputation.
The causes of outage could vary ranging from natural, technological or manmade disasters including security threats such as viruses or man in the middle attacks. The impact of these disasters could be huge – loss of revenue, delay in customer request processes and transactions to name a few – which would in turn affect the brand image and reputation of the bank and subsequent downfall and failure of the organization.
While the banks have been adopting business continuity plans, few key challenges faced by them for successful execution of business continuity plans include:
These challenges need to be addressed by the organizations to ensure effective management of disaster recovery efforts. Customers require immediate results and uninterrupted services. With competitors on the rise, the banks will have to ensure that the expectations of the consumers are met in a timely and effective manner. Read More…