TECH SUPPLIER Aug 2019 - Market Note - Doc # US45423819
The Cost of Banking Is About to Go Up: What the Capital One Breach at Amazon Could Mean for the Industry
By: Jerry SilvaResearch Director, Global Retail Banking, Marc DeCastroResearch Director, Consumer Banking, Steven D’AlfonsoResearch Director, Compliance, Fraud and Risk Analytics Strategies, Rivka Gewirtz LittleResearch Director, Global Payment Strategies
This Market Note analyzes what the Capital One breach at Amazon could mean for the industry. The latest data breach at the Amazon cloud affecting customers of Capital One may be the trigger for increased scrutiny from regulators around security and resiliency for the financial services industry. Cloud adoption in banking is beyond the point of no return, and any future constraints in the pace of migration to cloud platforms will affect everything from legacy modernization to customer experience to the movement of money to innovation through open and connected banking. For these reasons, the current state of services offered by cloud providers will not suffice if there is to be growth in the industry.
"The adoption of cloud platforms is a movement that will not be stopped," says Jerry Silva, research director, IDC's Financial Insights Group. "But there will be a slowdown as regulators step in to ensure that the security and resiliency structures that have always applied to banks directly are applied to the cloud providers with which they do business."
IDC Financial Insights: Worldwide Banking Digital Transformation Strategies , IDC Financial Insights: Worldwide Corporate Banking Digital Transformation Strategies , IDC Financial Insights: Worldwide Payment Strategies