Is the Cloud Secure Enough for the Financial Industry?

Investors, bankers and financial planners have a responsibility to their clients to secure their personal and business financial information.

Investors, bankers and financial planners have a responsibility to their clients to secure their personal and business financial information. It’s not just about good business practices; it’s the law. When your company reputation and livelihood is on the line, it’s important to have a full understanding of how any decision you make regarding the data of your customers and clients can affect security. For the most part, financial services companies have been hesitant to adopt cloud technologies, labeling it as not secure enough. Many principals find themselves asking the question, “Is the cloud secure enough for the financial industry?” There are a few factors at play in the discussion of cloud security for the financial industry.

Yes. Just ask Microsoft.
While the ultimate decision should be weighed after an assessment from IT consultants with experience in the financial industry, Microsoft’s resources are a great place to start. In particular, they have created a Cloud Security Readiness Tool (CSRT). According to Microsoft’s website, the tool was created to help organizations understand their current IT infrastructure, identify relevant industry regulations, and evaluate whether cloud adoption will meet business needs. To access the tool, click here.

The hack myth.
According to Ovum research: “The capital markets are set to increase investment in cloud services, continuing the trend of technology adoption in the industry. New research from global analysts indicates that due to improvements in cloud security and a wider variety of applications, investment in the cloud […] is set for further growth.” The idea that the cloud is available to hackers is a bit of an exaggeration. With the appropriate infrastructure and planning most cloud computing systems created by Enterprises have much higher security than any localized data resource.

What about the compliance side of things?
The reality is that if you’ve got the right IT systems and partner in place, the cloud will address all major concerns involved in financial industry cloud services with regard to compliance. Things like unauthorized data access, business continuity and disaster planning and liability and risk management can easily be handled by IT providers and will cover any bases that need to be addressed before cloud services are deployed.

What you have to remember when you’re considering a switch to cloud services is that the companies that you’re hosting with invest millions (sometimes billions of dollars) to ensure the security of data. If you’re taking the appropriate measures to be sure that your employees are following compliance standards and set up data security precautions, the cloud can absolutely be a viable option for any financial industry organization.