Cloud challenges of the financial sector

March 11, 2015

Business leaders in the financial industry regularly depend on large amounts of confidential information to conduct their operations. Security is an imperative part of the process. The growth of cloud computing has streamlined operations for many financial investors, traders and advisors, among others.

However, a significant portion of chief executives and thought leaders in the sector are quite hesitant to embrace the technology because of all the things that could go wrong. They fear a data breach that could cost them not just a valuable client, but also their industry credibility – something that takes years of hard work to earn and minutes to lose. Security in the financial sector is a sensitive thing. This explains why tech engineers and IT managers who can develop encryption, biometric and decentralization strategies are increasingly vital in this important industry.

Survey identifies cloud hesitanceĀ in the financial industry
The Cloud Security Alliance recently conducted a survey on cloud adoption in the financial sector and found that 61 percent of respondents said their cloud strategy is in the formative stages. About 39 to 47 percent of respondents said that they plan to use a mix of internal IT workers, private cloud and public cloud services, while 18 percent said they plan to exclusively use a private cloud.

“The results of this report are insightful into understanding how the financial services industry is progressing in terms of cloud adoption and how cloud providers can best serve their interests and needs,” said Jim Reavis, the CEO of the Cloud Security Alliance. “We hope that cloud providers and financial institutions can use this as guidance to help accelerate the adoption of secure cloud services in the financial industry.”

Banks must be aware of employee cloud activity
According to American Banker, employees from a vast number of financial institutions throughout the country are using cloud-based apps at work without the knowledge of their employers. This can be a challenging aspect of oversight, but it’s still quite important for banks that are heavily involved in cloud computing.

“In today’s world, from an Internet and cloud perspective, it’s difficult,” David Levin, the director of information security at Western Union, told the news outlet. “It starts with a lot of awareness and training for the end user to know what not to do. Then there’s technology to help defend that. There’s no silver bullet. You’ll always have a user problem. People will do whatever they need to do to get what they need done.”