Financial services executives understand opportunities in cloud technology to improve performance, but the industry has much to learn when it comes to specific issues related to banking.
On the heels of TransUnion’s Q2 2021 report calling out rising fraud in the financial sector, a Google cloud study released Thursday shows financial institutions are increasing their use of cloud services, but regulators need to provide more guidance.
Many companies are considering a multicloud strategy, rather than a single strategy -- mainly because it would allow a bank to switch to an alternative provider if there is an outage to avoid an interruption of services for customers.
Google, together with the Harris Poll, surveyed about 1,363 financial services leaders in a survey fielded between December 7, 2020 and January 4, 2021.
The findings suggest that in the United States, Canada, France, Germany, Britain, Hong Kong, Japan, Singapore and Australia, about 83% use cloud services as part of their primary computing infrastructure.
Most agree on the following:
The top reasons for not using cloud services include:
Regulatory priorities among organizations include:
North America financial services lead in cloud adoption, with 54% in the U.S., and 52% in Canada. Germany at 43% and Japan at 42% reported the lowest level of cloud adoption.
Of those financial services companies today using a majority cloud strategy in the U.S., 54% of their workloads are fully deployed in the cloud.
The activities managed using cloud technology vary. About 54% use cloud for data and IT security, 48% for regulatory compliance, 46% for fraud detection and prevention, 45% for transition monitoring, 45% for retail banking activities, 42% for data reconciliation, 42% for regulatory reporting, and 38% for core underwriting.