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Financial Industry Leverages Intelligent Archiving for Regulatory Compliance


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Guest blog by Bill Mannel, VP & GM – HPC, Big Data & IoT Solutions, HPE Servers


The financial services industry produces perhaps the largest volume of Big Data of any segment, with a rising number of daily transactions occurring through stock exchanges, online banking platforms and mobile payment apps.

Explosive data growth and expanding data types have prompted regulatory bodies like the SEC and FINRA to institute strict requirements in order to properly monitor transactions that occur with increasing frequency over a mounting number of sources. In an effort to protect investors and maintain market integrity, regulators now require that financial firms preserve various types of relevant digital content for defined periods of time.  

To keep pace with escalating regulations, financial organizations must uncover new methods of proactively managing, accessing, archiving and disposing of sensitive data in order to remain compliant.

In addition to continually improving data availability and searchability, financial organizations strive to achieve storage optimization and extract value from their data archives. The ones that succeed will ensure compliance readiness and mitigate risk while reducing their data footprint. 

Intelligent archiving solutions can help financial institutions make sense of their stored data, and protect against the significant risks of non-compliance.

Firms who fail to establish information governance strategies, or those thinking that paying non-compliance penalties is less expensive than investing in proper technology infrastructures will reap harsh consequences. In 2013, FINRA fined investment firm Barclays Capital $3.75 million for failing to preserve electronic records, emails and instant messages for a period of ten years. Because they had not retained important electronic information, the firm was unable to determine whether all of its records were maintained in an unaltered condition. Not only were they forced to pay large fines for their non-compliance, but investor confidence was shaken and their reputation for keeping information safe was jeopardized.    

The challenge for the financial services industry is not only responding to evolving regulatory requirements in a timely manner, but also developing archiving strategies that optimize the management, use and disposal of diverse data types in a way that protects information assets and manages risk.

Pinpointing which data should be retained for compliance purposes is a critical first step. A wide range of data types are frequently requested during an audit or regulatory event, making it ever more important for financial institutions to understand what types of data they have in order to create actionable information governance strategies.

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Legacy IT infrastructures lack the flexibility and scalability to deliver clear insight and real-time control over financial data assets. Intelligent archiving technologies can be put in place to ensure that data is organized, easily discoverable and readily accessed when necessary.

Archiving solutions available as hosted, on-premise or hybrid models can help financial organizations achieve compliance and address changing regulatory requirements. Hybrid environments combine the agility and cost savings of the cloud with the data security and enhanced control of on-premise technologies to deliver IT efficiencies and flexibility for reacting to new regulations.  

Investments in Big Data analytics, cloud computing and intelligent storage solutions offer the financial services industry greater opportunity to proactively manage their data, strengthen information governance and ensure compliance. Financial institutions that undergo IT transformations to modernize storage capabilities and adopt smarter archiving practices will be able to survive and compete in a highly regulated industry, mitigate risk and shift focus to business growth.  

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About the Author


I am a Senior Manager managing external content and social media for HPE Servers Awareness. Stay tuned for topics on Mission Critical Solutions, Core Enterprise and SMB Solutions, Next Gen Workload Solutions, Big Data and HPC, Cloudline and HPS Options! Follow me @RubyD_Nich