Cloud Computing in Banking: Risks You Should Know

The unabated growth and evolution of technologies in the world around us has meant that we have gained access to a mind-boggling number of solutions and tools to help us with countless endeavors. Take cloud computing, for example; given its ability to transform entire businesses, it comes as no surprise that this technology has quickly become a crowd favorite across the broad spectrum of industries. This includes the banking and finance sector as well, which has slowly, but increasingly, embraced cloud technologies. However, these efforts have been slowed down on account of some of the common challenges one stands to face while integrating cloud services. Listed below are some of these key problems and how one can deal with them.

1. Security: Easily one of the biggest concerns that hinder the adoption of cloud computing is the security of such services, especially since companies do not have control over cloud computing services. Plus, the world is brimming with news about data breaches and whatnot pretty much every day. The concerns, while decidedly valid, can be addressed with ease. First, it is imperative to understand the concept of cloud computing and security itself. It may also help to ensure that one can see precisely where their data is stored. Furthermore, thanks to the constant evolution of technologies, cloud providers are also able to offer better levels of security. 2. Multiple clouds: More often than not, modern-day companies, irrelevant to the sector they operate in, opt for a multi-cloud setup, i.e. a combination of public and private cloud services, based on their business’ unique requirements. One key challenge that arises then is the inability to properly secure such setups. The most effective way to deal with this challenge is by ensuring round-the-clock visibility across both, the hosts as well as the services. 3. Regulations and compliance: Governments and authorities across the globe have brought in a world of rules and regulations for digital solutions as well as the banking and finance sector in general, of course. This can become an issue when companies move their data from on-premises, internal systems to cloud services.

Thankfully, the solution to this particular challenge is quite simple; first, it is imperative to ensure that the service provider you opt for has strong regulatory compliance credentials. Some may also need further discussions and input to achieve compliance. Either way, make sure that they’ve got you covered in the compliance department before making the switch.

Cloud computing has managed to make quite a bit of noise in the market ever since it first arrived on the scene and rightly so. Understandably, it has made its way into the banking and finance sector as well, where it has delivered countless benefits and enabled next-level growth for businesses. However, its adoption has not been without its challenges, as evidenced by the above discussion.

Now even though these issues may come across as overwhelming, the fact remains that the right strategy and tools can help you deal with any issues the adoption of cloud computing in banking and financial services sector may throw one’s way. Thankfully, there are plenty of expert service providers in the market that can render this integration for your business substantially easier. So, what are you waiting for?

Olivia Johnson is a technical writer, love to share stuffs related to technology & development.