Why Innovation and Cost Pressure Have Made it the time for Cloud in Financial Services
Authored by: Krishan Chauhan - Principal Consultant, Head of Innovation UK
Financial services firms around the globe are being forced to change their business models and rethink their approach to cloud due to shifting regulatory views, new techniques in machine learning and digital ledger technologies requiring increased computing power, and a constant pressure to reduce infrastructure costs.
One of the greatest barriers to cloud adoption in financial services historically has been regulation. However, regulators now have shown an openness to accepting cloud-based infrastructure models. The Financial Conduct Authority (FCA) recently provided specific guidance for firms on the use of cloud to prove control and employ the right risk protections, and regulations like the General Data Protection Regulation (GDPR) have established a clear framework for data privacy and protection, even when in the cloud, and are becoming more progressive amid widespread technological adoption and digital transformation happening rapidly across the industry. With increased support and encouragement toward innovation and technological adoption with sandboxes being set up, paired with the proper regulatory guidance and governance structure, this barrier can now be overcome. In fact, the technological landscape has now arguably overtaken the financial landscape, with the key driver being financial firms adopting new technologies to address regulatory roadblocks.