In the financial services industry, data security is foundational to building trust, driving innovation, and meeting regulatory requirements. As institutions handle growing volumes of sensitive information, like personally identifiable information (PII), credit data, and financial transaction records, the stakes for secure data management are higher than ever. Breaches can lead to severe penalties, reputational damage, and erosion of client trust. With the rise of hybrid environments and the urgency of modernization, financial services institutions must prioritize secure, scalable solutions for managing and moving data.

In a recent webinar, experts from Fivetran and Hakkoda discussed the current state of data in the financial services sector, trends shaping the industry, and how organizations can address these challenges with modern data strategies. 

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The challenges of legacy systems and emerging technologies

Legacy systems present significant hurdles to agility and innovation. These systems lack the flexibility to integrate with modern cloud-based analytics platforms, hindering the adoption of advancements like AI-driven risk modeling and real-time fraud detection.

Simultaneously, institutions face:

1. Regulatory complexity: Financial organizations must comply with frameworks like GDPR, SOC 2, and PCI DSS, ensuring data sovereignty and strict access controls.
2. Evolving cybersecurity threats: Breaches are not just financial risks; they erode client trust, making robust, end-to-end encryption a necessity.
3. Data silos: Disparate systems limit the ability to derive actionable insights, stifling innovation and responsiveness.

These challenges are compounded by the sheer volume and sensitivity of financial data, requiring institutions to adopt modern tools to manage, secure, and utilize their data effectively.

Modernizing data infrastructure for security and agility with Fivetran’s Hybrid Deployment

Financial services institutions must modernize their data platforms while ensuring compliance and security if they want to stay competitive, drive innovation, and deliver personalized, data-driven experiences to their clients.

To do just that, financial services organizations are adopting Fivetran's Hybrid Deployment. Designed for businesses in highly regulated industries, Hybrid Deployment processes sensitive data entirely within an organization’s virtual private cloud (VPC) or environment, ensuring compliance without compromising usability.

How it works

Hybrid Deployment combines the simplicity of Fivetran’s managed platform with the security of customer-controlled environments. Sensitive data never leaves the organization’s infrastructure, addressing key concerns about privacy and compliance.

Key features and benefits:

• Enterprise-grade security: Data stays within the customer’s environment, ensuring compliance with industry regulations and security protocols.
• Ease of implementation: The solution is easy to set up and manage through Fivetran’s intuitive UI, reducing maintenance efforts.
• Scalability and flexibility: With over 700 pre-built connectors, Fivetran supports a wide range of data sources and destinations.

This capability allows organizations to focus on deriving value from their data while leaving the complexity of integration and security to Fivetran’s platform. Hakkoda complements Fivetran’s capabilities by offering expertise in compliance reporting, real-time market analysis, fraud detection, and credit scoring and risk assessment. Together, they enable companies to modernize their data infrastructure, ensuring smooth transitions from legacy systems while maintaining daily operations and compliance.

Real-world example

Large financial services companies are already finding value with Fivetran’s Hybrid Deployment. National Australia Bank (NAB) — Australia’s largest business bank and the second largest overall by market capitalization — intends for Fivetran’s Hybrid Deployment to become part of the cloud-hosted platform while processing its sensitive data in NAB’s own secure environment.

“With Fivetran's new Hybrid Deployment, there is the potential to achieve an all-in-one platform that helps us scale data movement while keeping our most sensitive data safe,” Joanna Gurry, Executive of Data Platforms at NAB said. “This model will allow us to unlock additional value and securely move our sensitive data to Databricks, so we can enrich it and drive insights without data leaving our own secure environment.”

Final thoughts

To succeed in the modern financial landscape, financial services organizations must view data modernization as both a strategic investment and a security imperative. By adopting scalable, secure solutions like Fivetran and leveraging expert support from partners like Hakkoda, institutions can:

• Ensure data security and compliance
• Streamline data integration and governance
• Empower innovation and personalized client services
• Reduce operational complexity and costs

Modernizing your data infrastructure isn’t just about technology; it’s about building a foundation that secures trust, drives growth, and ensures resilience in an ever-evolving industry. With the right tools and strategies, financial institutions can stay ahead of the curve while protecting the sensitive data that powers their success.

To learn more about how Fivetran’s Hybrid Deployment can support your organization’s needs, watch the full webinar.

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