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Are financial cloud applications as secure as they could be?

Are financial cloud applications as secure as they could be?

There is no denying the great potential that cloud services represents for financial institutions. Banks and other service-based companies constantly handle heavy flows of data. Many smaller organizations are under pressure to meet growing expectations to efficiently store and utilize relevant information. Cloud solutions are easy to use, cheap to maintain and can be quickly implemented by database administration experts. With this in mind, what is keeping so many finance firms from embracing the trend that is changing the face of the enterprise IT industry?

Banks are skeptical of cloud security and control over data
A main source of concern for financial organizations when it comes to adopting cloud services is the security and maintenance of company and client information. By outsourcing data solutions many banks feel that they run a higher risk of falling victim to a cyber attack or fraudulent employee schemes. According to Computer Weekly, these IT security concerns are certainly warranted but financiers are not putting enough trust in the protection that modern cloud services have developed.

Comprehensive legal regulations represent a major benchmark for cloud adoption in the financial sector. Currently, laws applicable to outsourcing are the same ones used in regulating cloud service payment plans and implementations. Computer Weekly stated that banks are looking for tighter legal parameters to be established before they take their data and applications to the cloud. Kemp Little commercial technology partner Paul Hinton explained the tentative attitude that banks appear to express toward cloud services. 

"These are potential loss of control, availability and access to data, data security, data location, auditing and exits," Hinton told the news source. "There are a lot of efforts to create [legal] standards and hopefully we will have them soon. This is good, but they are not here now and may not be for a while." 

How safe is it to adopt cloud services?
While major cloud data breaches are few and far between, there have certainly been some high-profile cases in recent memory. According to The Australian, industry leaders are trying their best to put these worries to rest. Maryland-based IT security firm SafeNet claimed that it protected over $1 trillion in transactions this past year without a hitch. Banks willing to take a leap of faith with the current state of cloud solutions sign up for a high-risk, high-reward situation.

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