Steady Rise in Cloud Adoption in Financial Institutions: Report
FREMONT, CA: There is a steady increase in cloud adoption by financial institutions, recent surveys reveal. The exponential growth of Big Data continues to alter the way banking industry addresses customer issues, notes Penny Crosman for American Banker.
A study featuring 20 financial firms was carried out by Skyhigh Networks, and it revealed that the use of cloud computing in these firms saw an increase of 11 percent between the third and fourth quarters of 2014 and 28 percent between 2013 and 2014. Backing the conclusions of the study, David Levin, Director of Information Security at Western Union says that cloud computing makes the job simpler and the transition needs to happen faster than its current pace. Cloud computing drives innovation and flexibility enabling banks to launch new services faster.
On the other hand, another survey by Cloud Security Alliance, which covered 102 financial institutions, shed light on the reasons for reluctance to transition; it noted that seven percent of the respondents had a strict no-cloud policy, whereas 32 percent had a cloud usage policy and the remaining 61 percent were in the process of developing one.
Challenges in Cloud Adoption in Banks
Further, revealing reasons for the strict no-cloud policy, 86 percent of the respondents with reluctant stance said that security and compliance were their primary concerns while 79 percent of them pointed fingers at privacy and data retention, and 57 percent of them cited data residency as their issue with the transition.
"We see across all industries pretty aggressive adoption of cloud computing. Financial services companies are more careful and likely do a better job on average than other enterprises,” says said Jim Reavis, Co-founder, The Alliance and Chief Executive, President, Reavis Consulting Group.