Uncertain Regulatory Picture Hinders Banks' Uptake of Cloud, According to IDC Financial Insights
05 Mar 2015
LONDON, March 5, 2015 — A new study from IDC Financial Insights indicates that the outlook for cloud computing in the banking industry is positive, and in a few years the migration of many of banks' data and processes to public and private clouds is set to transform the industry.
Although a few start-up banks are considering wholesale cloud deployments, this IDC Financial Insights study finds that an uncertain regulatory picture still looks likely to hinder the uptake of cloud for banks' most critical lines of business.
As a relatively new phenomenon, there is still plenty of low hanging fruit for banks to move to the cloud in terms of non-core activities. But the broader question to be asked is the extent to which the current regulatory environment is chiseling away at the benefits of cloud computing, and the public cloud in particular. As cloud suppliers reengineer their offerings to address the requirements for auditability, segregation, and security, it seems possible that some of the economies of the pure cloud model are likely to dissipate.
"For Europe as a whole, so long as banks and their technology partners can point out exactly where their data is being stored, and so long as they engage with the regulators from the start of any project, they may expect a positive response from regulators," said Lawrence Freeborn, senior research analyst, IDC Financial Insights. "The supervisory authorities in different countries are going through a process of education about cloud computing, just like the rest of the banking industry. Nevertheless, the piecemeal approach to supervision of the industry is unlikely to have actually supported its growth."
The study —Cloud Computing and Regulation in Banking: Unclear Guidance from Regulators Inhibits Adoption (IDC Financial Insights #FIBA53X, March 2015) — is available to purchase at www.idc.com.
For more information or to arrange a one-on-one briefing with study author Lawrence Freeborn, please contact Kanupriya at +44 20898 77100 or email@example.com. Reports are available to qualified members of the media.
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers that serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc.com/financial, email firstname.lastname@example.org, or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-community.com/financial.
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