Friday, August 3, 2018

Cloud computing has emerged as a critical enabler in the financial services industry, underpinning firms’ transformation efforts to both (i) meet rapidly-evolving customer expectations of immediacy and personalization, and (ii) expedite processes, reduce risks and increase efficiency.

The first in a 3-part series on Cloud technology in the financial services industry, this paper examines the key opportunities and risks (and mitigants) of migrating to cloud, as well as simultaneously looking at the business and operational risks that arise for firms with not moving to cloud. Given these business drivers, we observe that as financial institutions are defining their strategy on cloud, the decisions are increasingly more in the order of “how,” rather than merely in whether to pursue cloud.

The subsequent parts in this series will explore some of the hurdles (both regulatory and non-regulatory in nature) to cloud adoption, with recommendations for how these can be addressed, as well as analysis of the role of Cloud Services Providers (CSPs) for the sector, including issues such as concentration risk and critical dependency.

IIF Authors

Brad Carr

Senior Director, Digital Finance Regulation and Policy

Daniel Pujazon

Policy Advisor
+1 202 857-3644

Jaime Vazquez

Policy Advisor