Episode 133 of FRT reflects on the role of cloud computing in the future of finance, and the recent US Treasury Report on the topic, with Howard Boville, Head of IBM Cloud Platform & Technology Lifecycle Services. Cloud computing is an essential tool for the digital transformation of financial services but its rise has been accompanied by a global policy dialogue on the role of cloud computing and the appropriate frameworks to manage risk and oversight. The US official sector had been comparatively quiet on the subject; however, a recent report from the US Treasury has put forward a comprehensive review.
The report, The Financial Services Sector’s Adoption of Cloud Services, takes stock of financial service applications moving to the cloud and the benefits it can deliver as well as exploring the risks and potential policy and regulatory responses. Various regulators and global standard setters have considered these issues for some time, and a variety of perspectives have emerged, particularly in the EU and some emerging markets. Now, the home jurisdiction for the major cloud service providers has publicly outlined their views.
Howard discusses trends in digital transformation, some of the challenges financial firms are solving in their cloud migration, and how firms are addressing the risks outlined in the Treasury report. Configuration of cloud services by the financial institution is one example of a place where more talent, expertise and communication between FIs, regulators/supervisors, and the cloud service providers could help advance understanding and support for critical applications migrating to the cloud. Addressing cyber risk is another focal point. Before the episode concludes we also look ahead at developments in AI and quantum computing as related developments for the future of finance.