Cloud computing an opportunity for the banking sector

Analysts predict that in 2019, banks around the world will invest over $ 20 billion in cloud solutions. The implementation of cloud-based IT systems allows the financial sector to find a solution to many problems, such as rising IT costs or threats in the area of ​​cyber security.

Analysts predict that in 2019, banks around the world will invest over $ 20 billion in cloud solutions. The implementation of cloud-based IT systems allows the financial sector to find a solution to many problems, such as rising IT costs or threats in the area of ​​cyber security.

Polish banks also see this opportunity and are interested in cloud computing. Last year, the Association of Polish Banks carried out the “Theseus” experiment, which was to check the adequacy of cloud solutions to the needs of the financial sector. The study clearly proved that such a procedure is not only possible, but also financially and safely. The Polish Financial Supervision Authority is also beginning to look more favorably towards the cloud.

According to the NBP, in 2019 the amount of money in the cashless circulation will exceed the value of cash transactions. That is why 94 percent. bankers as the main threat indicates a burglary to the customer’s account. Building from scratch an infrastructure that provides a guarantee of nearly 100% security is associated with enormous financial outlays.

The cloud guarantees the highest level of security at a fraction of the cost of building infrastructure in the in-house model. Until now, no hacker has been able to break into a private cloud, i.e. one in which an entity using it is responsible for the infrastructure, and not an external provider like Amazon or Microsoft.

In the case of effective attacks on data contained in the cloud in 95 percent. Unbearable users are those who disregard security procedures such as caution in the event of phishing attacks, regular password changes or two-factor authentication.

Cloud service providers use AES 128 or 256 bit encryption, which in practice means that without access to the right key to decrypt data, reading them is impossible. In addition, unlike, for example, server collocation, data is stored in a dispersed space, so it is not known on which disk there is information potentially desired by criminals.

EU regulations play an important role in this sector. Currently, banks are obliged to comply with the EU Directive, Payment Services Directive II, which, among other things, obliges the banking sector to provide its data and API to trusted entities, including companies from the fintech sector.

This means an increase in competitive pressure from entities that can offer innovative financial services without having to bear the costs of security guarantees that lie with traditional banks. The cloud will allow banks to create a platform that will allow developers to create solutions based on the bank’s data at low cost, which will increase the profitability of its products.