Network Interconnection and the benefits for the financial sector

At a time when the demand for quality connectivity is one of the main burdens in the market, and especially for the financial sector, understanding Network Interconnection can save the day of companies within the segment.

Financial institutions such as banks, brokerages and, more recently, fintechs. In addition to being part of a large and crucial ecosystem, providing services to society, they need to pay close attention to IT infrastructure issues.  After all, the services provided by these institutions are extremely delicate, requiring high security and data availability.

At the center of everything is the technological assets of this sector.

Today, customer experience is one of the pillars of Digital Transformation. Thus, the real challenges of the financial sector start to take shape. For companies in this area, in addition to dodging the widely known bureaucracy, the mission is to develop solutions and products in line with their new consumer.

Currently, consumers are connected 24 hours a day. That is, they can be active in banking applications at any time. that’s why his information needs to be available whenever the consumer wants it. This is the customer profile that causes concern for companies in the financial sector.

But… What is Network Interconnection and what does it have to do with all this? How can it be a solution for the connectivity of companies in the financial sector? That’s the question we intend to answer.

Keep reading to learn more!

What is Network Interconnection?

The exchange of information online is usually done by a complex decentralized and, for all intents and purposes, shared data network. That is, this type of communication is carried out indirectly.

For example, think of an online transaction: sending an image from computer A to computer B. In the conventional mode, the file does not necessarily travel a “straight line” between the two points.

In fact, it is broken down into several parts that follow different paths, often with a third point of exchange between the sender and receiver.

This process, combined with the geographical distance of these exchange points, makes this type of connection not ideal for companies seeking maximum performance.

Why? There are several reasons, but it can be said that the fact that it is decentralized increases latency, which directly impacts the speed of operations and harms customer experience.

As a result, the performance of your applications and systems suffers, as does the accessibility of customers, partners and suppliers to your data. Thus, without connection flexibility, you lose out when making quality deliveries to customers, as well as facilitating security breaches.

Network Interconnection is a strategy that seeks to fix all this, ensuring a private connectivity ecosystem that allows the exchange of information directly between companies, customers, partners and suppliers.

This solution works by providing a direct connection (physical over cable or virtual over a VLAN) between two (or more) IT environments hosted in a carrier neutral data center.

In this way, the user of one of the networks accesses data or services of the other without any trouble, facilitating operations and transactions.

How does network interconnection help the financial sector?

By understanding Network Interconnection, it is possible to see it applied in various market segments. This is true – it is no wonder that more and more companies are adopting this strategy.

However, in the case of the financial sector, it may be an action that is more than essential for business continuity.

More and more banks and financial institutions are improving their customer service. The goal is to be available at the physical branch – but also to take the branch services and place them on the palm of your hand.

That’s why these apps are so complete, true ecosystems that allow consumers to control every aspect of their financial life. 

However, this evolution, is the result of a whole chain of development. Today, more fintechs are teaming up with traditional financial institutions to create consumer-tailored services and solutions. With the operations area in the hands of these developers, the bank starts to focus on the consumer, which is a very positive point.

However, as innovations are added to this ecosystem of services, other players are added to the equation (fintechs, suppliers, partners), increasing competitiveness.

At the same time, consumer demand increases: more transactions are carried out every day, new requests are made.

That is, it creates a snowball effect of operations, data and information. And these examples are just the tip of the iceberg, as the financial sector moves much more data along its entire chain of operations.

With the latency of conventional connections, in addition to their inflexibility, this whole process could happen in a very long time.

With Network Interconnection being applied efficiently, this time can be much shorter.

A centralized environment of data exchange enables all third parties involved with the bank or financial institution to do so with maximum connective performance.

Understanding Network Interconnection also means understanding that its adoption makes all online processes safer and faster.

How can Ascenty help?

Okay, now you know what Network Interconnection is and how it can help the financial sector. What does Ascenty have to do with all this?

Ascenty has the best Network Interconnection solutions in the entire market. In fact, it is leader of the ISG quadrant of Colocation in Brazil.

With a robust data center infrastructure (the largest in Latin America) and carrier neutral, it can provide the interconnectivity your company has always dreamed of.

Its ecosystem of data centers and connectivity are spread across strategic points of the country and the continent, with a 4500 km fiber optic network and more than 100 Telecommunications operators and integrated providers.

To meet this market need, Ascenty offers the solution

In other words, an infrastructure capable of providing the best network interconnectivity between your company and your customers, suppliers and partners.

In addition, Ascenty provides extra services that can supplement your deliveries. An example is Cross Connect, as it connects your company with different service providers within the Data Center, bringing your business closer to the technological solution capable of transforming it. 

With this content, you have learned about Network Interconnection and how it can help the financial sector. Now, how about taking action and making this transformation happen? 

Contact Ascenty now and schedule your meeting!