Transform to compete: Learn how to get the most out of your MSP provider

In today's dynamic banking environment, midsize banks are under constant pressure to compete with larger institutions. Achieving growth and maintaining business agility amidst ever-changing market conditions can be daunting. However, partnering with the right Managed Service Provider (MSP) can be a game changer.

Finastra, in collaboration with partners DXC Luxoft, have put together this insightful checklist of the top eight strategies you’ll need as a midsize bank to implement to stay competitive, and how the right MSP can help.

Checklist for transformation

1. Embrace digital transformation

What you need to do: Modernize legacy systems to improve flexibility and efficiency.

Legacy technology can be a significant hurdle to transformation. Outdated systems, with their varying ages and connectivity levels, can lead to an inflexible tech stack. This makes change difficult and costly. Begin by conducting a thorough audit of your existing systems to identify the most critical areas for modernization. Transitioning to modern, integrated solutions can streamline operations and reduce maintenance costs.

Why an MSP?

Choose a managed services provider who can immediately add value and wants to understand your current project landscape and possible interdependencies with your new project. MSPs offer the expertise and resources necessary to handle complex migrations smoothly and allow your team to focus on core business activities. Access the latest technology without the disruption of major in-house upgrades.

2. Enhance talent acquisition and retention

Action: Attract and retain top talent in a competitive, global job market.

The competition for top talent is fiercer than ever, especially post-pandemic, with remote work becoming the norm. To attract and retain the best, consider offering competitive salaries, flexible working conditions, and robust professional development programs. Partnering with an MSP can alleviate some of this burden by providing access to a pool of highly skilled professionals on an as-needed basis.

Why an MSP?

MSPs offer access to a pool of specialists, ensuring the right expertise is available when needed. This flexible staffing model allows you to scale your workforce up or down based on project demands without the long-term commitment and costs associated with full-time hires.

3. Adopt cloud solutions

Action: Transition to cloud-based platforms for improved scalability and agility.

The shift to cloud computing is not just a trend but a necessity. Cloud platforms offer unparalleled flexibility, scalability, and cost-effectiveness. Start by identifying key applications and services that would benefit most from cloud migration. Develop a phased migration plan to minimize disruptions.

Why an MSP?

MSPs can facilitate smooth cloud migrations, minimizing disruptions and maximizing benefits. They bring experience and tools that can accelerate your cloud journey, ensuring data security and regulatory compliance throughout the process.

4. Improve security measures

What you need to do: Implement advanced security protocols to protect sensitive data.

In today's digital age, security threats are more sophisticated and frequent. Implementing advanced security measures is crucial. This includes end-to-end encryption, multi-factor authentication, and continuous monitoring. Conduct regular security audits and update your protocols as needed.

Why an MSP?

MSPs provide cutting-edge security technologies and continuous monitoring. By leveraging the latest security advancements from major cloud providers, MSPs can offer a level of protection that might be cost-prohibitive to develop in-house.

5. Streamline regulatory compliance

What you need to do: Stay ahead of evolving regulatory requirements.

Regulatory compliance is a moving target, with new rules and standards emerging regularly. Ensure your systems are flexible enough to adapt to these changes quickly. Develop a compliance framework that integrates with your business processes and stay informed about upcoming regulatory changes.

Why an MSP?

MSPs ensure that your systems remain compliant with the latest regulations, reducing the risk of penalties. Their expertise in regulatory matters can help you navigate complex compliance landscapes, ensuring you meet all necessary requirements without overburdening your internal teams.

6. Enhance customer experience

What you need to do: Utilize technology to provide personalized and efficient customer service.

Customer expectations are higher than ever. They demand personalized, real-time service. Leverage technology such as AI-driven chatbots, personalized marketing, and robust CRM systems to enhance customer interactions. Gather and analyze customer feedback regularly to improve your services.

Why an MSP?

MSPs offer tools and platforms that enhance customer engagement and satisfaction. By implementing the latest customer experience technologies, MSPs can help you build stronger, more loyal customer relationships.

7. Optimize cost efficiency

What you need to do: Reduce operational costs through strategic technology investments.

Cost efficiency is not just about cutting expenses but making smart investments that yield long-term savings. Evaluate your technology spend and identify areas where investments in automation, cloud services, or managed services can reduce costs. Develop a clear ROI framework for all major technology investments.

Why an MSP?

MSPs help identify cost-saving opportunities and smooth the cost over the life of the engagement. By spreading costs predictably and reducing the need for large capital expenditures, MSPs can significantly improve your financial flexibility.

8. Increase business agility

What you need to do: Implement flexible systems that can adapt to market changes quickly.

Business agility is crucial in a rapidly changing market. Develop a culture of agility by promoting continuous learning and innovation within your team. Implement flexible, scalable systems that can quickly respond to market changes and new opportunities.

Why an MSP?

MSPs provide scalable solutions that allow your bank to pivot and grow without significant downtime. Their ability to rapidly scale resources up or down ensure you can meet new demands and seize opportunities as they arise.

Choosing the right MSP isn’t just a strategic move; it’s a necessity for your bank’s growth and security. Finastra and DXC Luxoft are working together to empower midsize banks to thrive in the digital age. We can help you transform your operations, secure your future, and stay ahead of the competition with our proven expertise and support.

Interested in exploring strategies to help your bank thrive in the ever-evolving financial landscape?

Contact us now to take the first step towards long-term success.

About Finastra

Finastra is a global provider of financial software applications and marketplaces, and launched the leading open platform for innovation, FusionFabric.cloud, in 2017. It serves institutions of all sizes, providing award-winning software solutions and services across Lending, Payments, Treasury & Capital Markets and Universal Banking (Retail, Digital and Commercial Banking) for banks to support direct banking relationships and grow through indirect channels, such as embedded finance and Banking as a Service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by over 8,000 institutions, including 45 of the world’s top 50 banks. For more information, visit finastra.com.

About DXC Luxoft

Luxoft, a DXC Technology Company, is a global banking and capital markets consulting and services provider that offers innovative solutions to clients in various industries, focusing on financial services. Its expertise in operational resiliency, systems monitoring, and advanced analytics helps clients improve business operations, increase efficiency, and reduce risk. Luxoft has been recognized for significant achievements in the financial services industry in recent years. In 2020, the company was named a "Leader" in the Gartner Magic Quadrant for Application Services in the Banking and Financial Services sector. Industry analysts also acknowledge Luxoft as a leading provider of digital transformation services for financial institutions.