Banks and cloud computing: the risks assessed

Author: Zoe Thomas | Published: 11 Nov 2013
  • Cloud computing raises both challenges and opportunities for banks, but will be an inevitable move to maintain cost and technological efficiency;
  • Cloud providers are becoming more willing to negotiate with financial institutions to meet their specific needs, though individualisation still has a long way to go;
  • Regulatory guidance is vague, but the largest regulatory concern will be the ability of regulators to audit the data. This might require specific agreements with the cloud providers.

Banks and financial institutions are increasingly looking towardscloud computing as a cost efficient means by which to store data. But the trend raises a host of regulatory and compliance issues.

Mergers arising from the financial crisis and increased scrutiny from financial regulators has forced banks to consider more ways to consolidate and streamline their...