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Data Centers Help Keep Your Company in Compliance with State and Federal Laws

By Shirette Stockdall

Regulations are put in place to keep companies honest, and the financial sector is no different. There are various federal and state regulations to keep institutions focused on what’s best for their customers over profitability. General privacy measures and compliances within the financial sector means data centers are essential in the modern financial era.

In fact, a national first took place in 2017 when New York State passed a regulation requiring financial institutions with a presence in the state to come up with risk-based data management platforms in order to protect customer data. These sorts of regulations require banks, wealth management companies, and similar companies to not only securely store customer data where it is safe from cybercrime, but also to provide ongoing analysis. This ongoing analysis can alert businesses when a client’s information is at risk or has been lost or stolen as soon as possible, allowing them to mitigate the damage as quickly as possible.

However, for this technology to even be feasible, data centers are a necessity. They can aid institutions not only with data storage but with strong additional services such as network connectivity, those ongoing processes can be done quickly. This allows for minimum latency, enabling businesses to step in and aid their customers in the event of a cyberattack.

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