Formerly resistant, big banks adopting the public cloud

Dive Brief:

  • Deutsche Bank researchers say large banks are beginning to adopt public cloud services more frequently, and adoption could grow significantly in 2017, according to a report from the Wall Street Journal.

  • The researchers say perceived security and regulatory risks have in the past prevented a lot of large banks from moving to the cloud. 

  • Deutsche Bank researchers said some bank IT executives told them they could potentially increase their use of the infrastructure-as-a-service model by 30% by 2019.

Dive Insight:

Researchers found that banks are growing more interested in cloud now because of its mainstream adoption. Vendors have also made cloud services more secure and improved compliance services.

The report comes at a time of heightened cybersecurity concerns at financial institutions worldwide. In February, hackers stole $81 million from a Bangladesh central bank. As more information about the case comes to light, banks are looking at their standards and protocols in how they use technology, hoping to avoid another cyber heist. 

A May survey from Vormetric found 90% of IT security pros in financial services feel vulnerable to a data breach, and 44% have already experienced one. The report also found there are concerns over cloud security. The main concerns included security breaches at the cloud provider level (75%), increased vulnerabilities from shared infrastructure (72%) and lack of a data privacy policy or privacy service level agreements (71%).

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Filed Under: Cloud Computing Infrastructure