Digital footprints of businesses are on expansion and so is financial security. According to Statista, the global GDP is $100 trillion and cybercrime costs the economy over $1 trillion annually.
A significant number isn’t it creating a black hole of concerns? While present technologies are sinking into it, SaaS is emerging as a promising solution. This increases the chance of software as a service adoption in banking and financial services escalating the market growth to more than $130 billion next 3 years.
Until now all leading banking & financial institutions were using legacy software which is not enough to combat modern threats.
As financial organizations grapple with challenges, a debate between the relevancy and reliability of legacy on-premises applications and Software as a Service (SaaS) is increasing.
To move forward, first, let’s start with the basics.
Legacy software is a traditional approach as they are on-premises applications. Even though they are outdated for the current scenario, they have been the backbone of operations. Legacy software is still in practice as it was initially designed for financial institutions and performs as intended.
In it, data and backups are held on premises allowing direct access and eschewing cloud requirements. Though it serves unique requirements, this makes legacy software slow with no upgrades. Because of update inflexibility, it puts various limitations such as infrastructure, maintenance, and security. This makes organizations incapable of managing modern threats as they arise.
SaaS, contrary to legacy software is modern, flexible, and reliable. It is also useful in cost reduction. Data can be accessed using the software and cloud and additional security can be added with licenses according to the need. Moreover, it provides constant upgrades that renew the product lifecycle. The icing on the cake is that you can access data from anywhere in the world with an internet connection.
This modern approach is user-friendly and agile and stays up to date with the changing requirements or regulations from the customer end.
Opting to choose SaaS providers is a more reliable option as they heavily invest in security enhancement measures, imply authentication protocols, malware detection and prevent intrusion.
SaaS and its products are surging more in banking, financing and insurance industries. Embracing its benefits or its products is more important. While maintaining legacy software is costlier and challenging, SaaS is beneficial in various ways. Here are some use cases to help you evaluate its usability:
Data breach not only affects one company but millions of users/ customers whose information has been compromised. That is why the security and privacy of data is paramount against any crime.
When data is being managed by a small team and less frequent updates, it is likely to have more threats and loopholes. On the other hand, a SaaS service provider with a dedicated team and robust security system is far more capable to prevent malware acts.
It allows real-time updates so that team members don’t have to worry about missing updates.
With SaaS, you don’t have the hurdles of buying and installing software on your computer. It is as easy as streaming movies online. SaaS makes it easy to fight against financial crime with effective tools and seamlessly works with your existing system. With the latest tech, you don’t have to worry about losing features or completely removing old systems.
On the other hand, continuing with legacy software means more expenditure on keeping them operational in cases of technological tweaks. So, it allows using more than one tool to fight against financial crime.
When cloud-based services are being used, it ensures that organizations can access their data and software anytime and anywhere. It stamps out the need to check on the physical server or visit the server location. SaaS reduces the dependency on physical checks and grants accessibility through software however needed. Altogether it grants agility, the finest tools to combat financial crime at the workplace, and act as quickly as possible.
SaaS is modern and easy to use. It’s dedicatedly designed to keep the interface simple so that it helps people learn how to use it quickly and adapt to its functionalities. It focuses on delivering a good user experience. The great deal about software as a service is that it is easy to get accustomed to and makes training new users easier.
As technology evolves so do ways for criminals. That’s why using any software with limitations is not effective in preventing financial fraud or crime. Companies developing advanced solutions with AI nd machine learning are better for analyzing data and deal with situations.
Legacy systems with no integration of SaaS cost more to update and yet have vulnerabilities.
As a company grows, it needs more features and solutions. Legacy systems can’t handle growth well and take more time and resources to scale to a vision. On the other hand, SaaS development is flexible and dependable. It lets organizations grow, handle new challenges, add new features, and keep up with growing needs.
By now you very well understand that legacy software are designed to perform with limitation and needs. They require highly customized workflow to function. On the other hand, SaaS applications are scalable to the according to the requirements offer scalability, and flexibility and improve security. Also, with the expertise of a SaaS providers, financial organizations can focus on growth and innovation.
In a nutshell, organizations must first draft a clear blueprint of their goals considering risk factors associated with legacy and SaaS. This way it is easy to choose the correct and appropriate security option.
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