Public Cloud is Ready for Financial Services, But is Financial Services Ready for Public Cloud?

There’s no disputing that the emergence of cloud computing has radically altered the way that business is conducted and even the ways in which we lead our lives. From the emergence of Netflix in entertainment to Uber in transportation, the power of cloud has been unleashed in ways that are driving growth, slashing costs and providing heretofore unimaginable products and services. And yet, while new businesses have pioneered trailblazing applications, incumbents have been slower to react for a variety of reasons. Given that it is never easy to adapt a new technology to an existing business, the question becomes: when do the future benefits of adoption outweigh the short-term implementation risks to the enterprise? For many financial services companies, this inflection point has been reached.

But make no mistake: the stakes are high. Financial services companies are highly regulated and they touch a large amount of extremely sensitive data while the systems and processes that run their operations are complex and must be able to operate continuously without interruption or failure for extended periods of time. Adding public cloud in this scenario presents a unique set of challenges, not only because it can introduce a new attack surface to defend but also due to the need to adapt existing ways of business to the cloud in order to fully maximize the benefits of this new technology. Even in light of these risks, however, our experience suggests that a financial service institution’s debate over whether to move to public cloud has reached the point where adoption far outweighs the costs.

The Hidden Benefits of Public Cloud

While the economic benefits and enhanced utility afforded by the cloud will be the ultimate drivers for adoption, there is much more to be gained when making the migration to public cloud. A shift towards public cloud results in a more resilient and robust level of systemic security, which carries special interest to the data- sensitive financial services industry. Providers of public cloud services adhere to the highest levels of security protocols, including ISOs, SOCs, WORM, Privacy Shield, and other industry and country-specific compliance standards, as well as devote resources to maintaining and improving performance that a corporate CISO could only dream of. Further, public cloud introduces principles and practices that turn traditional data and network security on their heads and, in doing so, create a whole new paradigm of protection. Specifically, by adopting zero-trust design principles at all levels of data, processes and systems, it becomes possible to abandon the less effective “fortress mentality” that defines traditional security. When everything is protected at each and every step, it not only becomes easier to detect anomalies, it’s also possible to lower costs; extend security more effectively between on-prem and cloud resources; and generate greater insight and control.

Now is the Time to Make the Move

Market research firm MarketsandMarkets has projected that the finance cloud market will grow at a CAGR of 24.4% to over $29 billion by 2021, and the financial services cloud solutions practice at Maven Wave has followed a similar trajectory. We have reached the point where the question is no longer “is the cloud secure?” Rather, ask “how do we move to the cloud securely?” Maven Wave can act as a trusted partner to assist in your successful cloud journey. Download our latest white paper, “Securing PII Data in the Cloud for Financial Services,” to learn how the cloud can improve your security posture & provide other benefits.

In our next blog post, we’ll take a look at broader trends in cloud migration and what they mean for the enterprise.

Companies seeking to accelerate performance rely on Maven Wave for innovation-driven digital transformation. Maven Wave delivers strategy-led, results-driven business solutions powered by cloud computing. To learn more, contact us now.

About the Author

Chuck Mackie
Chuck Mackie is a consultant with Maven Wave focusing on creating cutting-edge content and thought leadership articles in the areas of financial services, healthcare, and technology. He joined Maven Wave in 2010 and prior work experiences include stints at IntercontinentalExchange (ICE), Trading Technologies, and the CME Group. He has a Masters degree in marketing from Kellogg/Northwestern and a BA in Economics and Humanities from Coe College.
February 14th, 2019

Get the latest industry news and insights delivered straight to your inbox.

Sign up for our Newsletter