Recent years have seen a rapid rise in cloud adoption, as organizations began understanding the benefits offered by cloud computing. Cloud computing entails real-world security implications for an array of industries and financial services are one of the most affected by unique cybersecurity challenges. These challenges involve adhering to rules & regulations to protect consumer data and prevent fraud.
The banks of 2030 are touted to be significantly distinguishable from what they are today, which is evident from their current efforts on employing strategies to be future-ready. Cloud computing is a key indicator of the shifting landscape of financial services and the mainstream focus of chief information officers, board members, and C-suite executives.
Leveraging Cloud Solutions to Pave New Frontiers
Retail financial service firms are seeing the value that the cloud brings, after having got through the ‘phase of disillusionment.’ With the implementation of PSD2 – second Payment Services Directive, the emergence of fintech competitors, and the advent of blockchain technologies, several banking firms are realizing the cloud’s viable route to future success. With cloud solutions in hand, a financial service organization has a real chance to evolve.
For banks, organizations are aware that the implications of storing sensitive data in the cloud, which they cannot completely understand, might be detrimental. Most organizations have been reluctant to hosting highly sensitive data on the cloud. However, in the contemporary cloud landscape, uncertainties remain. Most financial services organizations are confused about what information must be retained on the cloud. This confusion deepens further with the growing sophistication of cyberthreats alongside proliferating regulations.
Capital markets and banking leaders see cloud as a destination for financial services firms, where they can store applications and data while accessing advanced software applications through the internet. Banking leaders have been relying on the cloud’s value as a faster, cheaper, and more elastic solution alternative to on-premises data storage. Apply cloud technology in six key areas will help banks fuel improved shareholder returns and business performance, which include enterprise synchronization, driving business innovation, exploring new methodologies and new talent, building resilient operations, enhancing IT security, and scaling computing costs based on requirements.
What Must Financial Services Organizations Seek Out to Maintain Security?
Complete awareness on evolving threats and visibility into applications is of paramount importance to financial services organizations at present. As misconfigurations of the cloud continue to make organizations vulnerable, there is a dire need to find ways for closing the attack window on potent cybercriminals. One of the key ways is building cloud-based multi-tier architectures. Customers in the financial services space have the ability to segregate between tiers to ensure optimal security in their cloud management.
While looking for cloud solutions to keep up with evolving threats, financial services firms must consider highly scalable security solutions to safeguard their applications from automated and targeted attacks. These include application-layer DDoS, OWASP top 10 attacks, defacement, and data breaches. Organizations in the finance space are highly likely to invest in solutions that automate public cloud-based security policy compliance and provide visibility into distributed cloud environments. Such solutions offer continuous infrastructure scans to detect misconfigurations while actively implementing security best practices and preventing violations before they turn into risks.
To sum up, committing to such solutions will stand financial services firms in good stead for being able to completely leverage the benefits of cloud computing in financial services. All this while maintaining the required control and security.
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