Banking is an industry overrun with processes (and acronyms!). In fact, the business of banking would not be possible without the numerous, supporting processes that comprise the infrastructure. Over time, however, those processes can morph into something unwieldy, time-consuming, expensive and risky. Particularly information technology processes.

This is where an MSP, or a Managed Service Provider (not to be confused with Merchant Service Provider), can come in very handy. What do Managed Service Providers do? They are third-party companies that assume the ongoing, day-to-day responsibilities, maintenance and monitoring of a range of processes that are outside of a typical bank’s skillset. For the most part, MSPs assist with information technology tasks.


Am I a good candidate to use an MSP?

Typically, banks under $2 billion in assets are good candidates, particularly if they are attempting to perform in-house some (or all) of the following processes:

• Computer updates to system (anti-virus and Microsoft patching)

• Firewalls for the bank

• Server support

• Telephone systems

• Hardware management (desktops, switches, routers, printers, etc)

• Back-up systems (for disaster recovery)

• Security awareness training

• Help desk support

This list is by no means exhaustive, but if your bank is handling those processes internally, then it could be exhausting! And expensive! And time-consuming!


What are the benefits of using an MSP?

1) Better utilization of Bank Staff: As mentioned briefly above, if your bank is handling numerous IT services with bank staff, then an MSP would free up your employees and allow bank staff to be reallocated for greater effectiveness for the bank. Also, IT talent is in great shortages – especially in the rural areas.

2) Lowers Overhead Expenses: Although it may seem like keeping these processes in-house saves your bank money, it may actually be working against you. In fact, by shifting many of these IT processes to an MSP, you may find your overhead costs lowered.

3) Provides Expertise: It can be time consuming and challenging for in-house bank staff to stay on top of the ever-changing IT environment, but for an MSP, this is their wheelhouse. Allow them to utilize their expertise in information technology while you redirect your employees back to generating and serving your bank customers.

4) Saves Time: If an MSP is handling a bundle of IT services, then there is no question about where to turn when a need arises. No more hunting down the right people or hoping they’re not on vacation when the phone system goes down. Just make one call.

5) Reduces Risk: This is a biggie. In banking, risk management is trying to prepare for and guard against the unseen risk. And everyone knows that many of the scariest threats for banks arise from the information technology world. MSPs focused on information technology are forced by necessity to be on the cutting edge of the IT field and have their finger on the pulse of the greatest threats. Further, they must be prepared to counteract those threats for their customers.

6) Increases Flexibility: Banks may elect to keep some processes or operations inhouse. For example, a bank may keep the Help Desk, Field Services, Desktop and Printer support, but let the MSPs perform the heavy more technical lifting. Banks may also keep their infrastructure onsite.


How do I find an MSP?

The process usually begins by taking a thorough assessment of which IT processes are being handled internally and identifying which ones would be better shifted to a third party. Secondly, create an RFP (yet another acronym) to elicit proposals from reputable MSPs. Thirdly, compare submitted proposals based on features and pricing. Ask questions and negotiate. Choose the company that best suits your bank’s needs.


How long should the process take?

• Typically, 30-45 days to complete the RFP process

• About 2-3 weeks to review/analyze/compare proposals, present findings to the bank, select a provider, negotiate terms and set timeline for transfer of services

In short, an MSP may be a solution worth exploring ASAP.