The Lighter Side Of The Cloud – Cloud Services
The Lighter Side Of The Cloud – Beta Testing Gone Wrong
The Lighter Side Of The Cloud – Forecasting
How Financial Services Find Traction In The Cloud

How Financial Services Find Traction In The Cloud

How Financial Services Find Traction In The Cloud

Much of the enthusiasm and discussion about cloud technology focuses on its dynamic and innovative structure, and with each passing day a new technique or resource bursts onto the scene with promises of greater functionality and speed for all. But this causes great trepidation and reluctance among those charged with ensuring safe and secure environments, especially in highly regulated industries such as financial services. Banks, credit card companies and other financial institutions are teased by the promise of lower operating costs and dynamic scalability, and of course are painfully aware that their clients, suppliers and competitors are quickly adopting this new approach, leaving them to look like dinosaurs in the process.

Risk Wheel

The problem lays not so much in the resistance to change but instead in a lack of complete and cohesive guidelines from regional or local authorities to counteract the ever-present compliance and security issues.

Gartland & Mellina Group (GMG), a strategic management consulting firm based in New York and with clients worldwide, is now seeking to assist in resolving this conundrum with the release of its white paper, entitled Navigating Through the Cloud in Financial Services, one of four papers that comprise its new Thought Leadership Series on Technology Adoption in Financial Services.

Starting with a statement (supported by data) that shows just how much financial services are lagging behind in cloud adoption, it then highlights the clear fact that “financial services firms must navigate a range of deployment & service models that vary in the level of cloud ownership responsibilities and security control.

One specific area that the GMG white paper focuses on is that of compliance, which they identify as a “double-edged sword in the financial services industry.” This is due to regulatory requirements under Dodd Frank regulation that require securities firms “to hold significantly more data for reporting mandates, which compounds the compliance risk derived from the data privacy and control demands imposed under the Gramm–Leach–Bliley and the Sarbanes–Oxley Acts.” This means that cloud migration will increase reporting demands.

Added to this is the fact that authorities such as the Federal Reserve and SEC have not yet firmed up their position on cloud data migration, leaving little in the way of standards and guidance.

The paper points out that the industry is not without is sources for policies and procedures, in fact there are quite a number of authorities that financial institutions must deal with. The Federal Financial Institutions Examination Council (FFIEC), for example, released a joint statement by the FDIC and the Federal Reserve and others, which provides guidelines for cloud migration strategy, while payment card information will be guided by the Payment Card Industry Data Security Standard (PCIDSS), which identifies additional requirements for joint responsibility between CSPs and their clients.

Issues dealing with geography and international commerce are highlighted in the paper, as well as the numerous types of threats and attacks that a cloud-based system must withstand.

Far from being a gloom and doom scenario, the GMG white paper presents a number of viable options and opportunities for financial institutions and their IT specialists to consider when contemplating a move to the cloud.

Robert Rowland, Director in GMG’s Financial Services Strategy and Solutions Practice states, “Due to regulations, security concerns and consolidation, the financial industry is faced with challenges in advancing their technology solutions. We understand that taking that step forward isn’t easy. But we wanted to provide firms with practical insights that would not only compel them to modernize their business practices, but that would also help them approach it in an effective way from a business perspective. Considering these insights will not only benefit their bottom line, but also increase the value they add for their clients.”

For more information, please visit http://gartlandandmellina.com/gmg/who-we-are/white-papers/

By Steve Prentice

Follow us

Steve Prentice

Steve Prentice is a project manager, writer, speaker and expert on productivity in the workplace, specifically the juncture where people and technology intersect. He is a senior writer for CloudTweaks.
Follow us

Latest posts by Steve Prentice (see all)

Sorry, comments are closed for this post.

Recent

The E-Learning Market – Cloud Computing Adoption

The E-Learning Market – Cloud Computing Adoption

The E-Learning Market  We’ve talked a fair bit about e-Learning and MOOCs (Massive Open Online Courses) technologies here on CloudTweaks over the past number of years. The industry is expected to continue to grow at a brisk pace as more and more firms and educational institutions start to adopt cloud based services.  Docebo has an excellent…

Big Data, Business Intelligence And The Programming Language “R”

Big Data, Business Intelligence And The Programming Language “R”

Why Your Next Business Intelligence Hire Will Use R As anyone working in the field knows, business intelligence is an evolving landscape. New technologies, combined with a rapidly expanding marketplace, are disrupting legacy solutions and established platforms. Despite such growth, however, there have been a few constants, such as the R programming language. As other…

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

Popular

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

What Cloud Technology Has Allowed Us to Do Better The cloud has made our working lives easier, with everything from virtually unlimited email storage to access-from-anywhere enterprise resource planning (ERP) systems. It’s no wonder the 2013 cloud computing research IDG survey revealed at least 84 percent of the companies surveyed run at least one cloud-based application.…

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats Each week on CloudTweaks we provide a few shoutouts to companies who provide engaging and interesting infographics that reflect our readers interests.  In this case, we have an excellent infographic provided by the team at arellia.com which takes a closer look at cyber-security and some of the biggest malware threats…

Public vs. Private vs. Hybrid: Which Cloud Is Right for Your Business?

Public vs. Private vs. Hybrid: Which Cloud Is Right for Your Business?

Public vs. Private vs. Hybrid The debate surrounding the deliverability of cloud computing is coming to a close. Businesses have begun to rapidly adopt the use of cloud services, courtesy the ROI this disruptive technology brings to the table. They have finally realized they cannot afford to ignore the cloud. A Forrester study found that…

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility A CIO friend of mine once told me that a hybrid cloud model enables him to “own the base, rent the spike” when it comes to unplanned events. Let’s face it – maintaining unused infrastructure for rare or random IT events is expensive and unnecessary in a cloud…

Cloud Infographic – The Future (IoT)

Cloud Infographic – The Future (IoT)

The Future (IoT) By the year 2020, it is being predicted that 40 to 80 billion connected devices will be in use. The Internet of Things or IoT will transform your business and home in many truly unbelievable ways. The types of products and services that we can expect to see in the next decade…

Sponsored Posts

The Value of Hybrid Cloud

The Value of Hybrid Cloud

The Value of Hybrid Cloud As the “cloud” continues to exert its dominance as the IT technology of the day, the question for many companies focuses on what type of cloud to choose: public, private, or a combination of the two, known as hybrid. Each has its advantages. Private cloud – owned and maintained by…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Branded Content Programs

Advertising