Financial institutions hold some of the most sensitive and regulated data in the world. Managing that data effectively requires systems that promote secure, efficient access while reducing the total cost of ownership. However, reliance on outdated NAS makes confidentiality, compliance, and security increasingly difficult to maintain as data volumes continue to surge.
Factors including transaction growth, regulatory reporting, and digital services are driving up storage demands, while mergers, acquisitions, and global operations add further complexity to organizational data sharing. Additionally, institutions are preparing for AI deployments, which require accessible and well-governed data.
To address these issues, organizations are developing transformation plans to adapt to the changing environment. Yet legacy storage has become a major barrier, as it’s unable to scale to support the needs of modern finance. Nearly 60% of financial services CTOs said their legacy tech stack is too costly and inadequate for modern applications, according to Forrester Research.
More problematically, these storage systems leave security gaps that put organizations and their customers at risk. In 2024, 65% of financial services organizations were hit by ransomware. That’s a big financial setback, as the average cost of a data breach for a financial organization is more than $6M, which is 22% higher than the global average across all other industries.