The Importance of Data Centers in The Financial and Banking Sector
The operations of modern businesses depend a lot on data and connectivity. Companies, especially those that handle finance and telecommunication process a large amount of information on a daily basis, and for them, any failure in delivering services will ultimately lead to the loss of clients and profits. As these businesses constantly produce and utilize data, they need speedy and secure access to data. Therefore, they require dependable data centers to be able to function well.
As they provide business agility, enable automation, allow better security, and increase efficiency in all aspects, data centers have always been critical assets in banking and finance for many years. However, their importance is now more important than ever, and there are two essential reasons why.
Data Centers Allow Data Recovery
The companies in banking and financial sectors rely on data processing and storage to provide the best services, so all kinds of threats to the data stored have to be avoided at all costs as it directly affects their operations and risks losing clients. Disasters, both natural and manmade, are one of the top causes of data loss. Unlike physical assets which can be resurrected through insurance in case of fire or natural disaster, lost data cannot be remedied unless you have their backup. This is why data backup is the first-step protection and anticipation that businesses should have to ensure their operations run smoothly.
Off-premise data centers, either self-owned or colocation services, have been a popular option among banking corporations to protect their data against damage, theft, software failure, and disaster. This option allows companies to store their data away from the areas that are insecure and prone to disasters, also the organization can retrieve the data in case that they are damaged or interrupted. Moreover, using colocation data centers give companies better chances to avoid corporate data breaches as today’s colocation providers implement the latest, extensive, and tight security protocols in both physical infrastructure and cybersecurity.
Data Centers Are Vital for Compliance
Regulatory compliance refers to adherence to policies, rules, and procedures that create the regulations that businesses are to follow during the course of their operations. In Indonesia, certain regulations keep financial institutions honest, transparent, and focused on the well-being of the customer rather than exclusively on their own profitability. Therefore, it is important for financial institutions to pay attention to this regulatory compliance. Financial institutions are required to design and implement risk-based data management measures with customer data protection as its top priority. This means that banks and similar businesses must collect, securely store, analyze, and deliver notifications about fraud, cybercrime and other types of customer harm in as close to real-time as possible to perform continuous risk assessments.
Adding to that, Government Regulation of the Republic of Indonesia Number 82 of 2012 concerning the Implementation of Electronic System and Transactions* (“PP 82/2012”) regulates the obligations of Electronic System Providers in general and Electronic System Providers for public services. Electronic System Providers for public services, among others, are required to provide a data center and disaster recovery center in the territory of Indonesia, and must obtain an Electronic System Feasibility Certification from the Minister, and must be registered with the ministry that organizes government affairs in the field of communication and informatics. Compliance with these regulatory requirements is another reason why data centers and data center expertise are vital in modern banking.
The world of modern businesses, including banking and finance moves very fast in accordance with the extraordinary demands of requests for information. With compliances and requirements that always change following this growth and development, many companies put their trust in data centers that have safe and guaranteed facilities, because this plays an important role in achieving expected customer satisfaction.
*Peraturan Pemerintah (PP) Nomor 82 tahun 2012 tentang Penyelenggaraan Sistem dan Transaksi Elektronik (PSTE)