The integration of novel technologies in banking and finance is a double-edged sword. It has revolutionized the speed and efficiency of financial transactions while increasing accessibility to businesses and individuals alike. But this digital reliance also exposes these sectors to more pervasive systemic risks.
In an era of connectivity and remote access, a momentary glitch or system downtime isn’t just an inconvenient pause on the day’s financial activities—it can trigger a cascade of effects that ripple across financial markets. This is why FINRA Rule 4370 requires that firms establish and maintain written business continuity plans (BCPs) relating to an emergency or significant business disruption.
So how do you bulletproof your financial institution’s business continuity plan against common digital hazards and threats?
One aspect is satellite internet—a modern connectivity solution that ensures your financial operations stay up and running, no matter the circumstances.
The Evolving Landscape of Banking and Finance
While images of bustling trading floors like the NYSE may come to mind when thinking of finance and banking, these sectors have become increasingly digitized. The vast majority of trading and banking is now conducted electronically. And, most customer records are securely stored and accessed online.
As such, our financial systems, processes and records are now deeply enmeshed with advanced fintech technologies, such as:
- Cloud computing
- The Internet of Things (IoT)
And there’s the crux: as society embraces this digital progress, the stakes rise exponentially. With every new piece of tech integrated into the system, the potential points of failure multiply exponentially.
In this rapidly evolving landscape, secure and reliable connectivity is non-negotiable, especially when you’re dealing with sensitive data and real-time transactions that can move markets in milliseconds. There’s no room for error in such a high-octane, heavily regulated environment—not when the stakes and potential fallout are this high.
Ensuring the resilience of your network is more than just regulatory compliance; it’s a strategic imperative.
Satellite Internet—A Security and Connectivity Paradigm Shift
There was a time when traditional GEO satellite internet and land-based cellular networks might have been sufficient to meet the connectivity needs of a financial business and its customers. But in the unforgiving, ever-changing landscape of finance and banking, yesterday’s solutions are today’s liabilities, vulnerable to several connectivity challenges, including:
- Network congestion – During high-traffic events or crises, traditional systems aren’t built to handle the network overload.
- Infrastructure failures – Natural disasters have no respect for business continuity plans. A single event can incapacitate massive swaths of critical connectivity infrastructure.
- Security gaps – Legacy systems are porous. If you rely on these older systems, you expose your business and customers to data breaches, cyberattacks and compliance nightmares.
- Bandwidth limitations – Financial activities don’t just require a stable connection; they often demand hefty bandwidth to manage high-volume data transfers and real-time transactions. Traditional systems often choke under such bandwidth-intensive tasks, which can create a bottleneck for your operations.
- Limited carrier availability and coverage – In remote, rural or international areas, traditional networks often lack the robust infrastructure and coverage that big cities enjoy, leaving significant connectivity gaps that can hamper financial operations.
Given these glaring issues with legacy technologies, low Earth orbit (LEO) satellites offer a groundbreaking solution for high-speed, low-latency connectivity.
Today, companies like Starlink and OneWeb are deploying satellite “constellations” to ensure global coverage, filling the connectivity gaps that legacy systems can’t cover, especially in remote areas or in times of crisis. This technological leap promises to enhance real-time data exchange essential for financial transactions, uphold mission-critical applications and add layers of redundancy to mitigate single-point failures.
Ensuring Business Continuity and Disaster Recovery in Financial Services
Seeing as the financial and banking sectors depend on constant and secure connectivity, the role of a fail-safe, resilient system can’t be overstated. Failure to safeguard financial transactions, customer data and real-time market activities or disruptions to the systems, could have sweeping consequences. As FINRA notes:
“Since the use of remote access relies heavily on fully functional telephone and internet service, firms should consider alternatives to telework in their BCPs [business continuity plans], particularly for key control functions such as compliance, risk management, back office operations and financial and regulatory reporting.”
In that regard, FINRA mandates that financial firms create and uphold BCPs that cover a wide array of potential disruptions. Although FINRA provides some flexibility, allowing companies to tailor their BCPs to their specific operations and risks, there are certain non-negotiable elements every firm must address, including:
- Data backup and recovery (hard copy and electronic)
- All mission-critical systems
- Financial and operational assessments
- Alternate communications between customers and the firm, and between the firm and employees
- Alternate physical location of employees
- Critical business constituent, bank and counterparty impact
- Regulatory reporting
- Communications with regulators
- How the firm will assure customers’ prompt access to their funds and securities in the event that the firm determines that it is unable to continue its business
Extending Services and Connectivity to Remote Areas
Providing traditional banking services, particularly using digital-based solutions, in remote and underserved areas has long been a hurdle for financial institutions. The limitations of land-based networks and carriers often create a barrier to entry, essentially cutting off remote communities from essential financial services.
Once more, satellite internet represents a disruptive force capable of leveling the playing field. This technology allows financial institutions to establish remote offices with greater ease, thanks to its global reach and robust connectivity. In doing so, banks and other financial entities can extend their footprint into areas previously thought unreachable, bridging the gap between modern banking and isolated communities.
SuperGIG™ Satellite Technology with IP Access
In this new era of digital finance and banking, traditional connectivity solutions are relics of a bygone era. To stay competitive and secure, financial institutions must pivot to more secure, resilient and pervasive technologies. Satellite internet isn’t just an alternative solution, it’s the future—the way modern firms can meet compliance regulations by providing secure and stable financial services.
Why settle for limited connectivity options when you can reach for the sky?
Elevate your connectivity with IP Access International’s SuperGIG™ solutions. SuperGIG™ seamlessly blends terrestrial and space-based networks, ensuring the performance, security and reliability financial organizations need.
Ready to embrace the future of managed connectivity?
Discover the power of SuperGIG™ today.