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

About 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.

Find out more
View All Articles

Sorry, comments are closed for this post.

The Cloud Showdown: How To Determine The Best Cloud Solution For Your Business

The Cloud Showdown: How To Determine The Best Cloud Solution For Your Business

The Cloud Showdown For small and medium businesses (SMB) seeking to grow in 2016, options for increasing efficiency abound. The Cloud offers many benefits for businesses, including slashing IT expenses, providing a more efficient and reliable way to store and back up data, and facilitating collaboration among employees. In fact, 39 percent of SMBs claim…

World Backup Day: Understand The Data You Are Protecting

World Backup Day: Understand The Data You Are Protecting

World Backup Day: Understand The Data You Are Protecting Did you know that 113 phones are lost or stolen every minute? What about the fact that 1 in 10 computers are infected with a virus every month? Thanks to World Backup Day, an independent initiative that was started in 2011, awareness is being raised about…

Who’s Ready For The Cloud, And Can Deliver!

Who’s Ready For The Cloud, And Can Deliver!

Cloud Ready In my article last month, I discussed how the managed service provider (MSP) industry has been continuously urged to embrace the cloud, but in the end, could they? I answered the questions by describing several impediments and challenges that I believe are preventing MSPs from generating significant revenue and successfully fulfilling their client’s…

The Internet of illness

The Internet of illness

The Internet of illness The number of postings about IoT solutions has continued to rise. It is a wave that hasn’t crested yet. I’ve posted several here on CloudTweaks as have a number of other authors. IoT topics from the industrial use, to what IoT is going to change around the world. It got me…

Hot Emerging Trends – The Pizza Delivery Drone

Hot Emerging Trends – The Pizza Delivery Drone

The Pizza Delivery Drone Recently, drone delivery systems have been discussed as future state plans for many vendors. I personally think the traceable IoT-based pizza delivery drone is the next big thing. If you think about it, your pizza makes it to your house much faster. Since the drone carries both a temperature and a…

An Old Recurring Revenue Model Gains New Converts

An Old Recurring Revenue Model Gains New Converts

An Old Recurring Revenue Model Due to a range of market forces, a recurring revenue model that’s been used for decades in industries such as airplane manufacturing is undergoing a resurgence. Widely referred to as outcome-based pricing, output-based pricing, and performance pay, it offers companies a compelling way to stand out in a crowded field.…

IoT Rapid Expansion Throughout The World

IoT Rapid Expansion Throughout The World

IoT Rapid Expansion Cyber Physical Systems (CPS) are a nomenclature used to define the world beyond IoT devices. CPS includes the robotic and automation systems that interact with the IoT devices. Based on that changing landscape I have come to realize that CPS and by default IoT devices actually have three distinct concerns. The three…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the 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.

Sponsor