3 Ways Banks Can Mitigate the Risks of a Finite Cloud Service Provider Marketplace
Banks have been implementing cloud infrastructure for certain low-risk functions since nearly the technology’s inception. Many banks, however, have shied away from implementing core transaction processing on Cloud infrastructure. But that has been changing in very recent times. In just the past few years banks had already begun to migrate more business-critical and transactional processing to the cloud, and the Covid-19 pandemic accelerated plans across the financial industry.
In a July 2021 Financial Stability Report produced by the Bank of England, they cited that, while cloud computing for banks could sometimes be more reliable than a 100% self-hosting of servers, they had concern about the increasing adoption of public cloud services in the financial industry being provided by only a small number of very large providers. While the overall topic of the report is the Bank of England Financial Policy Committee’s view on the stability of the UK financial system, a section highlighted what the committee perceived as a threat based on its view that big providers could dictate terms and conditio