How Financial Institutions Cut Costs Every Quarter: Smarter Microsoft Support.

Organizations in the financial industry aren’t having an easy time of it at the moment. Now that we’re well under way for the new year, it’s been clear that a rough Q4 2024 hasn’t bred improved conditions for struggling companies in Q1 2025—particularly when it comes to financial institutions.

Institutions ranging from investment banks to mortgage lenders are reporting failed revenue and profit targets as they grapple for recovery. Under the weight of a volatile market and the pressures of regulatory costs, financial institutions are working on steering themselves (and their customers) through economic uncertainty.

Cut IT costs, not corners—switch to third-party Microsoft support.

One way some financial institutions are compensating for losses is to reduce operating costs. For organizations that run on Microsoft systems, the right support solution makes all the difference.

US Cloud provides industry-leading Microsoft support alternatives that can replace Premier Support and Unified Support for a fraction of the cost. Several financial institutions already trust US Cloud for reliable support that is secure and compliant—but doesn’t break any newly restrictive budgets.

The past two fiscal quarters have been challenging for many organizations in the financial industry. Here’s a list of just a few institutions that clocked the largest earnings misses:

• Financial Group: In Q1 of 2025, this company reported $1.6 billion in revenue, which represents an 8% decline YoY and missed Wall Street’s expectations of $1.9 billion.
• nCino: This cloud-based financial software company met revenue goals in 2024 but reported a loss of $0.16 per share, which was higher than expected. This contributed to a disappointing EPS adjustment and a 33% stock drop.
• Financial Institutions Inc: This company reported a net loss of $65.7 million in Q4 2024 (a significant decrease from their net income of $9.8 million reported in Q4 2023)
• Equifax: Thanks to reported revenue that was below expectations due to slowed hiring and mortgage growth, Equifax’s revenue forecast for 2025 is between $5.89 billion and $6.01 billion. This was below analysts’ expectations of $6.27 billion, which caused shares to underperform.
• Navient Corp: Q4 2024 revenue came in at over half a million dollars below expectations, causing a pre-market stock decline of about 6.6.
• Comerica Incorporated: This financial institution missed EPS expectations by coming in at $1.20 (below the predicted $1.25) and net interest income (NII) fell 1.5% YoY as of Q4 2024. Additionally, Comerica Incorporated recorded a provision for $21 million in credit loss last quarter—a 75% increase YoY.
• First Northwest Bancorp: FNB’s Q4 2024 was a tough one. They reported an EPS of -$0.32 and a revenue that was $963,000 short of expectations.
• Territorial Bancorp: This group’s Q4 2024 EPS came in at -$0.20, missing expectations by $0.12.
• Bank of Montreal (BMO): EPS fell below analysts’ estimates due to increased credit loss provisions, coming in at $1.90 (below the forecast of $2.41). This large bank in Canada also missed analyst’s estimates for quarterly profit in Q4 2024.

Financial sector showing significant recent earnings declines.

What is driving these industry-wide shortcomings? Several key factors include (but are not limited to):

• Market Volatility: Stock markets and bond yields remain unpredictable, leading to instability in investment returns and lending profitability.
• High Interest Rates: While banks typically benefit from higher rates, economic uncertainty has led to reduced borrowing, impacting loan revenues.
• Rising Compliance Costs: Stricter regulations and cybersecurity threats are forcing financial firms to invest heavily in compliance and risk management.
• Geopolitical Tensions: Companies operating in the international financial industry must accommodate banking operation disruptions, currency fluctuations, shifting alliances, and more.
• Digital Transformation Needs: To stay competitive, financial institutions must continually upgrade their IT infrastructure, but these investments come at a cost.

As financial institutions navigate these challenges, they must balance cost-cutting with maintaining critical operations—especially their Microsoft-based IT environments.

Key factors affecting financial performance and growth.

For organizations that maintain the world’s financial systems, data security and analytics are of the utmost importance. Not only must financial information be protected, it must also be handled deftly to ensure that small issues do not take on a ripple effect and produce unsurmountable problems down the line.

For institutions that run on Microsoft systems will therefore find expert Microsoft Unified Support indispensable, if costly. These systems simply cannot fail.

The problem with Unified for this sector, however, is that response times are famously slow. To mitigate this issue, several financial institutions have turned to third-party Microsoft support providers like US Cloud for a better support experience and lower costs.

By switching to US Cloud from Unified Support or Premier Support, financial firms can:

• Save 30-50% on support costs compared to Microsoft’s direct offerings.
• Receive faster, more personalized service with dedicated engineers.
• Avoid unnecessary support tiers and get straight to the expertise needed.
• Ensure compliance and security without overpaying for bloated contracts.

For banks, fintech firms, and lending institutions looking to reduce IT expenses while maintaining top-tier support, Microsoft Unified Support alternatives are a solution.

Additionally, before your Microsoft enterprise agreement (EA) expires, consider all possibilities for negotiating the contract in your favor with the help of support alternatives like US Cloud.

Cost and service comparison for financial institution IT support.

In the financial sector, security compliance and downtime elimination are non-negotiable. US Cloud supports clients across 50+ industries by delivering enterprise-grade Microsoft support that is high-quality, responsive, and industry-compliant. For financial institutions, that means specific support for:

• Regulatory security and compliance monitoring as well as support
• Proactive service options to mitigate data insecurities
• 24/7 ticket responses in 15 minutes or less
• Disaster recovery solutions

Cutting costs is essential, but not at the expense of security, uptime, or compliance. With US Cloud, financial institutions can reduce IT support expenses while maintaining the reliability and protection they need.

Contact US Cloud today for a smarter way for financial organizations to manage Microsoft support costs.

Why should financial institutions consider third-party Microsoft support?

Third-party Microsoft support offers significant cost savings while delivering faster, more tailored service compared to Microsoft’s Premier/Unified Support.

How does US Cloud ensure compliance with financial regulations?

US Cloud adheres to strict industry standards, including GDPR, ensuring that financial institutions meet compliance requirements without overspending.

Can third-party support offer the same level of service as Microsoft Premier/Unified Support?

Yes! US Cloud provides dedicated engineers, faster response times, and more cost-effective solutions without the bureaucracy of Microsoft’s direct support.

What are the cost savings compared to direct Microsoft support?

Financial institutions typically save between 30-50% on Microsoft support costs by switching to US Cloud from Microsoft Unified Support.

Is US Cloud a secure choice for banks and financial institutions?

Absolutely. US Cloud provides 24/7 security monitoring, data protection, and compliance solutions tailored for financial institutions.