Will Community Banks Embrace Managed Services?

Will Community Banks Embrace Managed Services?

Can managed services providers (MSPs) cash in on the banking vertical? Before you answer consider this: N-able Technologies has joined the Independent Community Bankers of America, an association that represents nearly 5,000 community banks across the United States. N-able thinks the financial services vertical is a prime opportunity for MSPs. But is N-able correct?

The answer is a qualified yes. Roughly 40 percent of MSPs currently support banks and financial services firms, according to the fourth-annual MSPmentor 100 survey results (which will be unveiled February 16). Among the apparent industry leaders: HEIT, an MSP that has joined multiple banking associations in the past year. Also, Caltech has been serving a range of financial services customers across Texas.

Not by coincidence, Caltech leverages N-able software for remote monitoring and management within the financial services vertical. Eager to repeat that success with more MSPs, N-able states:

"ICBA membership will further N-able’s ability to generate qualified leads through its Midmarket Partner Program and build greater brand visibility for its N-central technology within the financial services industry."
N-able executives plan to attend the ICBA National Convention and Techworld Conference (March 20-24, San Diego).

Meanwhile, there's a separate trend unfolding here: MSP-centric software providers are trying to find blue ocean opportunities outside of the traditional SMB market. Last week, ConnectWise attended VMware Partner Exchange in Orlando. The event attracted more than 3,300 VARs and IT service providers. Meanwhile, Autotask Senior VP Jay McBain is busy educating MSPs about how to succeed in the health care vertical.

Still, the blue ocean opportunities aren't simple. Succeeding in the financial services and health care verticals requires a range of corporate compliance expertise. Plus, community bank failures could trip up some MSPs.

Overall,  I think quite a few MSPs will fail to make vertical market transitions. But I suspect successful vertical market MSPs earn higher margins than their horizontal MSP counterparts. Just a hunch...

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