Cloud is not the future or an emerging trend anymore—it is the present and is a critical tool for financial institutions to stay competitive in today's challenging business environment. The digitalization in banks and the success of innovation using emerging technologies such as artificial intelligence largely relies on cloud computing.
While cloud has become the pillar of IT across industries, banks have been reluctant to exploring cloud options. This report examines six areas of cloud that are particularly relevant to the financial services sector. Here is a brief look:
Cloud's benefits and value for banks: Cloud enables banks to improve agility, drive innovation by tapping into cutting-edge technology, leverage industry-specific solutions, and shift their spending paradigm from CapEx to OpEx.
Why have banks been reluctant to use cloud? Concerns around regulatory compliances, data security, and risks associated with outsourcing of critical processes, have led many financial corporations to stay away from cloud. We recommend a structured approach, including a thorough risk assessment and vendor management processes to mitigate third-party risks and pave the way for a smooth cloud journey.
Key success factors for cloud transformation: Moving to cloud means a complete cultural change within the organization. Organizations need a strategy that is in line with the business's broader objectives, followed by a definition of risk management and governance requirements, and a financial analysis to build a case justifying the cloud investment.
Compliance with regulatory requirements: Deploying cloud services also involves legal aspects, since processing sensitive information or client identifying data (CID) falls under strict regulations. Since rules vary between countries, this report only presents general considerations—further information can be obtained from your local Deloitte office.
Cloud cyber security: Cloud services expand the IT footprint of organizations, which in turn, increases the attack surface. Robust cyber security processes must be implemented to combat threats across all cyber domains including network and infrastructure security, identity and access management (IAM), data protection, logging and monitoring, resilience, DevSecOps, governance, risk, and compliance.
How to select the right cloud service provider: Identifying the right cloud service provider depends on your current and future operating models and offerings, and the delivery model you intend to have (IaaS, PaaS, or SaaS). Deloitte recommends a framework to assess your cloud needs from different standpoints like regulatory aspects, compliance, cyber security, and technology requirements.
Read the full report to learn how we can help you make your cloud adoption a success story.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.