Recently, the Finance Magnates Executives blogged about why and how the financial services industry is losing customers. One of their biggest complaints was a lack of understanding (and taking action!) in regards of web hosting. As they explain, there are four major “flavors” of hosting including shared, virtual private server/VPS, dedicated, and cloud hosting. Any financial services company worth its salt knows that shared hosting isn’t the answer—this type of hosting is reserved for “smaller, non-critical websites.” Cloud hosting is usually a favorite for regular websites or those with strong IT leanings. Of course, dedicated hosting is fantastic but comes at a price point almost nobody can afford.
“For small to mid-sized companies, a good VPS will typically do,” they say. However, the financial services industry doesn’t seem to be taking note. Instead, they’re sticking with basic shared plans—particularly smaller companies or startups—much to the chagrin of their customers. There are two potential outcomes to this approach, and neither is attractive. One of them is that customers don’t know anything about hosting, and the company makes itself vulnerable to security breaches, ultimately resulting in what could be stolen identities, cash, or another type of breach. The other option is that customers do know about hosting, find out the company uses basic, and runs for the hills (as they should!).
According to Finance Magnates Executives, the type of hosting is just one factor driving customers away from many financial services companies. There’s also site speed—which can be impacted by your host, too! However, coding can also be to blame. Nobody wants to sit around waiting for a page to load, especially when it’s for something as critical as finances. This is one of the top ways financial companies are losing customers for good.
The blog points out that it’s not just the type of server/package companies are using that dictate quality of web hosting, but of course the web host itself. Based in the UK, the bloggers are vehemently against using off-shore hosting in the majority of instances. You’ll usually get better service and peace of mind going with a local company, and perhaps even a boutique web host.
They explain: “The computer that hosts your website (the server) is physically located somewhere. If your server is located in Amsterdam, it might not have the fastest connection to users located in China.” Obviously having a great server is important, so businesses should know what hardware they’re getting. However, physical location also plays a big role. Consider the geographic spread of your customers, and if possible choose a web host that’s located where the majority of your demographics are located.
Funny about Money
There are some industries that are especially prone to hacks: The ones that carry the most sensitive and potentially beneficial information. The financial services industry is one of them (no surprise there). This means companies need to take even more precautions to keep their data and their customers safe. Going with a better host and hosting package is a great start.