# Why faster reactivity to end-of-life deadlines is key for financial services Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-18 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Addressing End-of-Life Systems: Crucial Compliance Tips for Meta Description: Learn why financial services need to act fast on upcoming end-of-life deadlines for systems such as Windows Server 2012 to avoid non-compliance risks. URL: https://financedigest.com/why-faster-reactivity-to-end-of-life-deadlines-is-key-for-financial-serviceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-image-of-female-hand-with-pen-over-financial-documentb6zs-xez4w-sbi-305673347-1736838007275-compressed.jpg) By Mat Clothier, CEO, Cloudhouse ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/mat-clothier-headshot-450x253-1736838007173-compressed.jpg) Mat Clothier, CEO, Cloudhouse Across global industries, the financial services sector is among the most regulated. Ensuring compliance is an increasingly complex undertaking, and firms have not been short of challenges presented by factors such as [Brexit laws impacting](https://www.financedigest.com/brexit-might-impact-our-migrant-pool-magazine.html "“Brexit might impact our migrant pool.”-Magazine") on the flow of data between the UK and the EU. The introduction of GDPR in 2018 has also had wide-reaching implications in terms of [data security and the resulting fines in the case](https://www.financedigest.com/use-case-centric-data-management-why-it-is-the-future-of-data-management-for-financial-institutions.html "Use Case centric data management – Why it is the future of data management for financial institutions") of misuse of information or cyber-attack. With [financial services needing to adapt to a changing landscape](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud"), a rapidly emerging piece of the compliance puzzle is the need to address end-of-life systems and upcoming deadlines for end-of-support. This is particularly crucial in the case of server operating systems such as Windows Server 2012, with an end-of-life deadline currently set for 2023. But why is quick reactivity so crucial in this sector, and what do [financial services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") firms need to consider moving forward? The [financial services](https://www.financedigest.com/what-can-we-learn-from-financial-services-security.html "What can we Learn from Financial Services Security?") landscape Up-to-date operating systems such as Microsoft Windows can assist in providing a general safety net of underlying support, which can help [financial services firms](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") meet many regulations and provide the foundation for compliant apps. Persistence with an end-of-life system and failure to update or replace it can leave [financial services](https://www.financedigest.com/boom-or-bust-how-the-financial-services-sector-is-coping.html " Boom or Bust: how the financial services sector is coping") firms falling foul of these requirements, leading to significant fines from non-compliance or a resulting data breach from a cyber-attack on a known vulnerable system. The resulting loss of critical [data can then have further implications for organisations](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") in terms of inadvertently breaching established supplier agreements and obligations, plus the resulting inefficiencies from extended downtime. In the worst-case scenario, this can [ultimately threaten the brand and long-term survival of the business](https://www.financedigest.com/the-ultimate-excel-sales-tracking-templates-for-businesses.html "The Ultimate Excel Sales Tracking Templates For Businesses"). With a range of [risks that can pose serious challenges](https://www.financedigest.com/retreating-up-the-risk-curve-is-no-solution-to-the-growth-challenge.html "Retreating up the risk curve is no solution to the growth challenge"), the unique nature of the financial industry can be an additional roadblock to compliance. Strong market competition among financial [services firms can lead many in the industry to focus on IT investment to differentiate the business in a crowded sector](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…"). While understandably necessary as a tactic to compete, this [focus can lead to priorities shifting](https://www.financedigest.com/the-change-perspective-uks-financial-institutions-shift-focus-to-revenue-growth-in-2019.html "The Change Perspective: UK’s financial institutions shift focus to revenue growth in 2019"), resulting in failing to address end-of-life dates early enough. Like many industries, the financial industry has also been forced to tackle the [challenges that have come with its employees](https://www.financedigest.com/how-to-deal-with-challenging-employees.html "How to Deal With Challenging Employees?") working from home due to the Covid-19 pandemic, making it easier for the updating of systems to be put on the backburner and upcoming end-of-life dates to be missed during an extended period of crisis. Putting end-of-life at front-of-mind Financial [services firms need](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") to identify upcoming end-of-life dates as soon possible, ideally up to three years in advance in many cases. The [key from here is ensuring that well-thought through programme is set up and a pathway to compliance](https://www.financedigest.com/compliance-is-key-in-the-work-from-home-environment.html "Compliance Is Key In The Work-From-Home Environment") is then established, as it’s commonly the case that the last 20% of projects to update systems is the trickiest to navigate. [Financial services firms](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") need to view these projects as ones driven by business decisions, not technology. What many [need to also remember is that there’s no one-size-fits-all approach when it comes to addressing](https://www.financedigest.com/if-the-nation-backs-fintech-we-need-to-address-a-few-things.html "If the nation backs FinTech, we need to address a few things") end-of-life. In the case of where a move to a new operating system is needed, some [applications can be moved to a more modern platform](https://www.financedigest.com/the-tall-group-leads-uk-launch-of-innovative-chain-of-custody-real-time-authentication-platform-for-financial-applications.html "The Tall Group Leads UK Launch Of Innovative Chain Of Custody & Real Time Authentication Platform For Financial Applications"), but others may struggle due to incompatibility. Tools and expertise can enable [firms to determine](https://www.financedigest.com/determination-and-innovation-the-key-for-fast-growing-uc-firm.html "Determination and Innovation the Key for Fast Growing UC Firm") which apps are likely to successfully make the switch and identify the ones that potentially won’t, and help plan for alternative solutions to be implemented to benefit the business. There may be cases where fully replacing an end-of-life [operating system is not viable for the business](https://www.financedigest.com/synapse-appoints-new-finance-and-operations-manager-to-support-the-rapid-growth-of-the-business.html "Synapse appoints new Finance and Operations Manager to support the rapid growth of the business"), potentially due to cost. The expertise and solutions of an external provider can allow the aging system to be protected and updated as best as possible to ensure it [continues to meet the technology and regulatory requirements of the business](https://www.financedigest.com/despite-return-to-work-virtual-meetings-will-continue-to-disrupt-business-as-usual-in-finance.html "Despite Return to Work, Virtual Meetings Will Continue to Disrupt Business as Usual in Finance"). This means that [organisations can avoid the back-to-front approach](https://www.financedigest.com/cloud-migration-for-financial-services-organisations-whats-the-best-approach.html "Cloud Migration for Financial Services Organisations – What’s the best approach?") of investing heavily in completely replacing a system to a new version just so it can provide the same tools as it did before. [Keeping pace](https://www.financedigest.com/winning-the-security-race-how-financial-services-can-keep-pace-with-cybercriminals.html "Winning the security race: how financial services can keep pace with cybercriminals") with technological change The pace of technological change means that patches, feature updates and version updates are an almost constant occurrence [across industries](https://www.financedigest.com/digital-transformation-across-the-banking-industry.html "Digital transformation across the banking industry"). What is new today is legacy tomorrow, so it’s crucial for [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") firms to monitor their systems and ensure that they’re aware of changes in advance of when they happen. Partnership with the right external expertise can help firms to [keep a more comprehensive record](https://www.financedigest.com/red-box-and-bloomberg-partner-to-provide-comprehensive-record-keeping-and-trade-reconstruction-services-for-financial-compliance.html "Red Box and Bloomberg Partner to Provide Comprehensive Record Keeping and Trade Reconstruction Services for Financial Compliance") of changes that have been made to systems, allowing greater visibility and clarity for regulators, preventing systems from gradually drifting away from their desired state as updates are made. Doing so can also allow firms to have greater clarity of system end-of-life dates, enabling them to remain in control of their [compliance with financial regulations and avoid](https://www.financedigest.com/how-to-avoid-the-compliance-recruitment-merry-go-round.html "HOW TO AVOID THE COMPLIANCE RECRUITMENT MERRY-GO-ROUND") the potential risks of failing to act. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---