In the pandemic era, resilience has become one of the defining characteristics of the financial domain. It has come to the forefront on both people and operational ends. While on one hand, the sector has started focusing on their manpower wellbeing, on the other hand, it has started moving towards digital transformation for operational resilience.
If after reading the reasons below, you understand that you need services of a fintech app developer, you are on the right track.
Fulfill regulatory requirements
Because of the rising complexities of the financial systems, financial regulators have laid out the importance of nation-wide regulations. The government-level regulators evaluate the operational resilience of a fintech firm in a holistic manner led by the technological and market changes.
Prepare for security threats
With growing dependence on third party service providers and digital tools, fintech business exposure to security attacks has increased the need for the sector to prepare for security issues. Compared to other types of risks, cyberattacks are a lot more difficult to find and eliminate until a resilience engineering system is created.
Eliminate the risks of outages
When resilience is not kept on priority, core business elements become vulnerable to cyberattacks, pandemics, and geo-political environments. By creating resilience, fintechs get visibility of processes and crucial assets, which prepares them for instances of outages of fintech processes or services.
Maintaining and continuously improving fintech resilience is the need of the hour for the industry to establish trust with the customers and the regulators. Ensuring this requires them to follow a set framework of processes.
Reporting. Efficient reporting of the KRIs and KPIs is the key to taking strategized resilience decisions.
Testing. Frequent audits and testing should be performed to assess and reassess the business’s resilience capabilities.
Technology. The technology stack must be kept up to update to prevent the fintech products against any cyber threats or lags arising because of out-of-support technology.
Tolerance. The impact tolerances should be reviewed consistently as the business strategies modify, the customer expectation changes, technologies advance, and the regulations evolve.
Third parties. Resilience must be taken up as an ongoing check for every third-party contracts. Ensuring resilience goes further than checking the internal organizations and extends across every party that the business interacts with.
Change programs. The resilience criteria should be checked before the IT or business process programs are changed and are allowed to proceed.
Communication. Efficient external and internal communication lines should be maintained. The intent at every stage of resilience must be to lower any resilience specific backlog over time.
Disaster recovery. Disaster recovery plans should not just cover the impact of disruption but also the solution. There should be a dedicated crisis management team to solve the issues.
Cultural change. Once you have the operational resilience part handled, it’s time to move to the cultural part. A cultural change is necessary for employees to understand the resilience framework, the role they play in it, and the importance of business continuity.
Ownership. A well defined ownership of the key roles and tasks in the operational resilience framework is needed so that the process runs smoothly and clear responsibilities are assigned.