Are banks Over Reliant on the Cloud?

    Cloud services are extremely useful and have had a steady growth in implementation with several companies and systems over the years. For instance, many banks have resorted to using cloud technology to run parts of their infrastructure. With mass adoption, there are some questions being raised. Are banks far too reliant on cloud technologies? Bank of England asks.

“Its concerns stem from cloud adoption making systems more secretive and concentrating sensitive data in the hands of a select few tech giants like Amazon and Microsoft.

The central bank has said it will need “additional policy measures” to make sure it can assess the industry’s IT infrastructure, even when it’s run by third parties.

“Frankly, we’ll have to roll some of that back, that secrecy that goes with it. It’s not consistent with our objectives,” Governor Andrew Bailey told reporters.

The warning follows Deutsche Bank AG moving its most sensitive IT systems into Google’s Cloud. For firms like this, the cloud allows them to spend less on their own data centres while relying on the security and computing power of tech firms. The largest providers include Amazon Web Services, Microsoft Azure and Alphabet Inc.’s Google Cloud.”

It is stated that most banks use cloud technologies to cut costs and reduce resource loss on things like data centers and more. The “problem” those questioning seem to have been an issue with reduced privacy and secrecy within their organizations. With thousands of bits and pieces of organizational and client confidential information in the hands of third parties, banks are looking to roll back.

Resources:

https://cloudcomputing-news.net/news/2021/jul/16/bank-of-england-warns-that-banks-are-overly-reliant-on-cloud/