Banks and financial institutions rely on highly specialized software (e.g. for payment processing, risk management or customer management). Software escrow ensures that the source code remains available if the provider becomes insolvent or discontinues support.

Regulatory authorities often require business continuity and IT resilience to be ensured. Software escrow guarantees access to software solutions if the provider is no longer able to meet its obligations.

Escrow solutions provide banks with emergency access to source code and documentation to maintain control over critical software solutions and minimize dependence on a single vendor.

Many financial institutions rely on individually developed software. With an escrow arrangement, the source code is stored securely so that operations can continue in the event of problems with the developer (e.g. insolvency).

Escrow services are a central component of IT contingency plans by ensuring that important software and its updates are accessible in the event of a crisis.

Many banks outsource their IT infrastructure or software development. Escrow services create trust by ensuring that important software components remain accessible to the bank, even if the outsourcing partner fails.

Escrow services can also be used to secure ongoing updates, patches and support documentation so that there are no security gaps if the provider is no longer available.

In the high-speed business of banks, failures of software solutions can cause expensive business interruptions. Software Escrow guarantees access to critical tools in order to maintain business operations.

In mergers and acquisitions, where banks often need to consolidate IT systems, software escrow provides access to the source code to ensure seamless integration of software.

Escrow clauses in software contracts show that financial institutions are taking their business continuity seriously, while increasing the pressure on vendors to continue to provide high-quality support and regular updates.