Reducing the geohazard risks MFIs face with cloud technology

Woman sitting at a computer

Cooperatives and MFIs accelerate recovery

Microfinance clients rely on access to financial services as tools for recovery following a natural disaster – like taking out a loan for home repair. As stated by CGAP in a recent blog about microfinance’s role in natural disaster recovery, “Microfinance institutions (MFIs) serve as a critical and immediate vehicle to financing after disasters. But MFIs themselves are affected by these disasters and need the capacity to absorb ongoing shocks and stresses, recover operationally and financially after a disaster”.

On-premises servers are often affected in case of natural disaster

Many financial institutions still have their IT systems and data on-site. When a disaster hits, servers are very vulnerable. In the case of an earthquake, the data stored in on-site servers can be erased by the shocks. During a typhoon, the servers are often flooded. This puts the entire institution at risk: without its data and IT system, an institution can’t operate.

For example, the data stored on this institution’s server was lost after enduring an earthquake in Leyte, Philippines in July 2017.

Reducing geo-hazard risks with cloud technology enables institutions to protect their data

When financial institutions opt for a cloud-based system, their clients data is securely stored in professional data centres. These data centres are usually in Europe, which is less prone to natural disasters, and the building themselves are designed to resist disasters.

The data is safer in a bunker underground in Europe than in a financial institution’s basement in regions at risk of frequent geo-hazards. However, in case of an issue, a back-up and archiving system is set up in another data centre, in another country. This is how cloud-based systems can guarantee 99.99% uptime. Instant access to client data over the Internet enables cooperatives, MFIs and rural banks to resume operations quickly after a disaster and serve their communities better.

Woman with tablet, computer and mobile phone at her desk
Large rural banks embracing cloud to serve clients better
In response to the extreme geo-hazard risks in Mindanao, Cantilan Bank Inc., one of the largest rural banks in the Philippines recently moved their core banking and client data to the cloud using Oradian as a cloud provider, with support from the Asian Development Bank.

Cantilan’s Executive Vice President Tanya Hotchkiss said, “On average, the Philippines has 25 typhoons per year. This puts us and other rural banks at risk and we had to do something about it. Moving to the cloud is a very reliable risk management strategy for us. Our data is securely stored in countries with less geo-hazards and IT professional equipped to handle it.”

Global best practice and data security with Oradian

Oradian’s data centre is in of the most secure centres in Europe, with NATO and EU security clearance certificates. Oradian’s cloud solution also enables financial institutions to become more efficient, spend less time on administration and make better decisions using real-time data and automatic reports