There is a need for digital transformation in the banking sector. The Virtual Data Room approach helps to minimize disruption, provide security, and increase the chances of success.
Data Room in Banking
Cloud platforms, which are currently developing rapidly, have significant potential. Now it is faster to start a new fintech company than to transfer a bank, insurance, or large retail company, especially with a long history, to new technologies. Corporate culture is also changing, and years of polished standards are a thing of the past, and the culture and methods of work that have grown on Open Source projects are becoming relevant.
The digitalization process requires fundamental changes in the traditional systems of interaction and accounting systems. Next-generation customer and back-office systems must be powered by data, analytics, and artificial intelligence (AI) to automate informed decision-making and distribute data, events, and services across the enterprise.
Modern information technologies have long been cramped in their data centers. At the same time, banks and large retail chains have already accumulated large databases, and this data needs to be used, changed, modified with the introduction of new systems. For this purpose, Virtual Data Rooms are widely used in the banking sphere.
Basic features of the Data Room
The list of the main Data Room functions for banking needs includes the following options:
- Data concentration: the use of the cloud as the only place to store and process data, in some cases, improves security than the storage of data scattered across laptops, embedded devices, or stored on removable media.
- User rights per file. The Data Room solution offers a great advantage with the allocation of flexible reading rights: Your customers only see the files that have been assigned, so that the confidentiality obligations for the respective addressees are adhered to.
- Secure data Digital banks need a flexible, dynamic, and scalable information system that can quickly respond to changing business needs.
- Availability of resources: the ability to dynamically scale system resources, as well as redundancy and disaster recovery, which can be used to increase the resilience of the system against attacks such as “denial of service”, as well as rapid recovery after major incidents.
- Data backup and recovery: The cloud service provider may allow a higher level of backup and recovery than that provided by traditional data centers, as well as provide on-demand backup storage.
- Support for redundancy, self-recovery, and scaling, which increases system reliability and reduces risks of software and hardware failures.
- Real-time workload management, including batch operations and background programs that interact with users.
- Customizable watermark. All PDF documents are automatically watermarked with a date stamp and reader. The watermark can also be customized with your company name.
- Questions and answers module. With the Data Rooms, you can ensure a structured Q&A process (questions & answers) within your due diligence, so that no bidder questions go unanswered. Participants are informed of new questions via email, which is easy to use. You decide on a case-by-case basis whether only the questioner or everyone will receive the answer.
- Encryption of communication channels – for example, the SSL protocol with a hardware accelerator at the entrance to the cloud. A more correct architecture is SSL encryption directly in the virtual machine, but this must also be supported at the level of the hypervisor or its virtual network driver.