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Why the Financial Sector Should Adopt AIOps

Sean McDermott
Windward Consulting Group

Physical bank branches in the US could be extinct by 2034, according to a study funded by Self Financial Inc. While the permanence of physical banking is still up for debate, it's clear that digital banking is growing exponentially. In fact, 75.4% of Americans will use digital banking services by the end of 2021, and by 2025, this percentage will climb to an estimated 80.4%. Increasing digital transformation is even prompting some traditional financial institutions to proclaim themselves tech companies.

Many financial institutions are expanding online services to bolster their digital presence and keep pace with consumers' growing reliance on virtual banking. But the financial industry is still slow to deploy automation that will elevate their competitive advantage. According to Cornerstone Advisors, only 57% of banks and credit unions began digital transformations before 2021. And, of those at least halfway through their digital transformations, only 14% were using machine learning (ML).

Let's dig into why advanced automation — and AIOps in particular — is vital to staying competitive in today's financial sector.

AIOps as an Asset

Technology is now foundational to financial companies' operations with many institutions relying on tech to deliver critical services. As a result, uptime is essential to customer satisfaction and company success, and systems must be subject to continuous monitoring. But modern IT architectures are disparate, complex and interconnected, and the data is too voluminous for the human mind to handle.

Enter Artificial Intelligence for IT Operations (AIOps). AIOps tools leverage artificial intelligence to help SRE teams and DevOps practitioners monitor complex IT stacks, identify — and even predict — incidents and provide actionable insights into fixes.

Here are specific ways the power of AIOps can benefit the financial sector:

Enhance the customer experience. Today's consumers have no tolerance for downtime, and the stakes are exceptionally high when personal finances are involved. AIOps tools help prevent customer-impacting downtime by quickly finding problems within a system and determining their root cause. The resulting outcome is better service assurance and less mean time to remediation (MTTR), which leads to happier customers.

Defend against cybercrime. Roughly three-fourths (74%) of financial institutions in the US and U.K. experienced a rise in cybercrime from March 2020 to March 2021, according to BAE Systems Applied Intelligence. AIOps can help defend against cybercrime and their potentially devastating financial fallout for companies — falling stock prices, reputational damage and legal action on top of the known monetary losses. AIOps tools provide around-the-clock monitoring, rooting out suspicious behavior and instigating defense tactics to secure systems under attack.

Unlock time to innovate. While SREs and DevOps teams should develop innovative technology that delights customers and drives profitability, many operate in a constant reactive mode. Without the proper tools, teams can spend entire days drowning in incidents, putting out fires and falling short of their strategic goals. AIOps tools unlock time by automating mundane tasks, reducing noise, correlating events and raising system visibility to enable collaboration across teams.

One of my companies recently implemented an AIOps tool for a $100 billion global financial institution that found itself inundated with alerts. Prior to its AIOps adoption, the company relied on legacy monitoring tools to detect incidents. When an incident surfaced, upwards of 100 employees would bring their siloed data from their own disparate monitoring tools to cumbersome triage calls. In the meantime, time was ticking with the downtime causing mounting revenue losses and frustrated customers. But once the AIOps tool rolled out, MTTR fell by 40% in just six months, increasing valuable uptime and unlocking time to develop new customer-facing technologies.

As consumers embrace virtual experiences and the convenience of always-on digital services, digital banking will become more ubiquitous. But financial companies need to brace for this shift while addressing rising consumer expectations — for uptime and leading-edge technology — and broadening cybersecurity risks. AIOps is the key to addressing these challenges and gaining a competitive advantage in today's fiercely competitive financial sector.

Sean McDermott is the Founder of Windward Consulting Group and RedMonocle

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Why the Financial Sector Should Adopt AIOps

Sean McDermott
Windward Consulting Group

Physical bank branches in the US could be extinct by 2034, according to a study funded by Self Financial Inc. While the permanence of physical banking is still up for debate, it's clear that digital banking is growing exponentially. In fact, 75.4% of Americans will use digital banking services by the end of 2021, and by 2025, this percentage will climb to an estimated 80.4%. Increasing digital transformation is even prompting some traditional financial institutions to proclaim themselves tech companies.

Many financial institutions are expanding online services to bolster their digital presence and keep pace with consumers' growing reliance on virtual banking. But the financial industry is still slow to deploy automation that will elevate their competitive advantage. According to Cornerstone Advisors, only 57% of banks and credit unions began digital transformations before 2021. And, of those at least halfway through their digital transformations, only 14% were using machine learning (ML).

Let's dig into why advanced automation — and AIOps in particular — is vital to staying competitive in today's financial sector.

AIOps as an Asset

Technology is now foundational to financial companies' operations with many institutions relying on tech to deliver critical services. As a result, uptime is essential to customer satisfaction and company success, and systems must be subject to continuous monitoring. But modern IT architectures are disparate, complex and interconnected, and the data is too voluminous for the human mind to handle.

Enter Artificial Intelligence for IT Operations (AIOps). AIOps tools leverage artificial intelligence to help SRE teams and DevOps practitioners monitor complex IT stacks, identify — and even predict — incidents and provide actionable insights into fixes.

Here are specific ways the power of AIOps can benefit the financial sector:

Enhance the customer experience. Today's consumers have no tolerance for downtime, and the stakes are exceptionally high when personal finances are involved. AIOps tools help prevent customer-impacting downtime by quickly finding problems within a system and determining their root cause. The resulting outcome is better service assurance and less mean time to remediation (MTTR), which leads to happier customers.

Defend against cybercrime. Roughly three-fourths (74%) of financial institutions in the US and U.K. experienced a rise in cybercrime from March 2020 to March 2021, according to BAE Systems Applied Intelligence. AIOps can help defend against cybercrime and their potentially devastating financial fallout for companies — falling stock prices, reputational damage and legal action on top of the known monetary losses. AIOps tools provide around-the-clock monitoring, rooting out suspicious behavior and instigating defense tactics to secure systems under attack.

Unlock time to innovate. While SREs and DevOps teams should develop innovative technology that delights customers and drives profitability, many operate in a constant reactive mode. Without the proper tools, teams can spend entire days drowning in incidents, putting out fires and falling short of their strategic goals. AIOps tools unlock time by automating mundane tasks, reducing noise, correlating events and raising system visibility to enable collaboration across teams.

One of my companies recently implemented an AIOps tool for a $100 billion global financial institution that found itself inundated with alerts. Prior to its AIOps adoption, the company relied on legacy monitoring tools to detect incidents. When an incident surfaced, upwards of 100 employees would bring their siloed data from their own disparate monitoring tools to cumbersome triage calls. In the meantime, time was ticking with the downtime causing mounting revenue losses and frustrated customers. But once the AIOps tool rolled out, MTTR fell by 40% in just six months, increasing valuable uptime and unlocking time to develop new customer-facing technologies.

As consumers embrace virtual experiences and the convenience of always-on digital services, digital banking will become more ubiquitous. But financial companies need to brace for this shift while addressing rising consumer expectations — for uptime and leading-edge technology — and broadening cybersecurity risks. AIOps is the key to addressing these challenges and gaining a competitive advantage in today's fiercely competitive financial sector.

Sean McDermott is the Founder of Windward Consulting Group and RedMonocle

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According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

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Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

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