Historically, data has been stored in on-premise data centre servers, and at-rest data has to be kept for several years. In the banking industry, financial institutions are required to keep a huge amount of customer information and enterprise-level operational data. Even small credit unions are faced with maintaining large stores of archived and active data.
Because of the volume of data we are now seeing credit unions produce, running a physical data centre poses some big challenges when it comes to scalability and long-term sustainability. Even credit unions who are experiencing steady and predictable growth will eventually need more physical data storage capacity under the current model: as you gain more members, hire more employees, open new branches, introduce new tools and software – you’ll need more and more space to keep all of the resulting data.
This means more servers, more space to keep those servers, more IT expertise to maintain that infrastructure – and the list goes on. Never mind undergoing a merger, where in addition to the perks of inheriting a ton of new members, you also inherit a boat load of historical data that you now have to deal with.
In fact, in a 2021 whitepaper, the International Data Corporation (IDC) predicts that “on average, enterprises indicate that they expect 30% data growth annually (primarily unstructured). Using this growth rate as a general guide, we can assume that an organization managing 10PB of data today will store upward of 13PB of data the following year. And this pace of growth is not expected to slow down.”
All of this boils down to one thing: physical data centres make data storage far more expensive and inefficient than it needs to be. Credit unions shouldn’t have to backup data to a Virtual Tape Library (VTL) and physical tapes. There has to be a better way to manage data – and there is.
You’ve probably heard us talk about our data center modernization and moving to a hybrid cloud environment. Through that program, we’ve begun to evaluate our data storage and backup retention strategies for sustainability and scalability. During that investigation, a solution called ICOS quickly became the answer to solve virtually all credit union data storage needs and we are pleased to be offering this data storage option to credit unions through our product suite, backed by the power of by IBM.
With our new data storage solution options, our credit union clients will get:
When coupled with a file retention strategy using software like SharePoint for local file retrieval and retention, credit unions can be well-positioned to meet growing demand for increasing data storage.
Dale leads the architecture of Celero’s core banking suite. He works closely with our IBM and Fiserv partners, Fintech vendors and Credit Union teams to bring new solutions to life and keep our systems operating efficiently. Dale holds a Bachelor’s Degree in Computer Science and is a TOGAF Certified enterprise architect with over 30 years’ IT experience.
Other posts by Dale Fieber, Solution Architect, Core Banking