The cloud computing dilemma for financial services institutions

Abstract

This paper explores the current state of cloud computing in the financial industry. While the potential benefits of cloud adoption — agility, scalability and innovation — are acknowledged, the paper highlights the challenges that remain. These challenges include a lack of clear and consistent regulations across jurisdictions, concerns about data security and residency and the complexity of navigating a hybrid cloud environment. The paper argues that to unlock the full potential of cloud computing in finance, a collaborative effort is needed. Regulators are expected to establish clear global standards for security, data residency, reporting and service level agreements (SLAs). Financial institutions should prioritise security and sustainability when choosing cloud providers and advocate for clearer regulations. Finally, cloud service providers (CSPs) themselves need to collaborate with regulators and financial institutions to develop standardised security frameworks and reporting formats. By working together, the paper concludes, all stakeholders can build a more secure, sustainable and prosperous cloud future for the financial industry. Readers will gain an understanding of the current challenges and opportunities surrounding cloud computing in finance, along with the key actions needed to move forward. They will also be introduced to key concepts such as data residency and hybrid cloud strategies.