12 February 2016

UK FS industry warms to cloud but security concerns remain

02 September 2014  |  6281 views  |  0 Cloud on keyboard

Nearly two thirds of UK financial services firms consider cloud computing very or somewhat critical to their enterprise IT strategy but security and regulatory concerns about the technology persist, according to research from Finextra.

Finextra surveyed 106 financial services industry executives - evenly split between line-of-management and IT and operations - in the UK and Ireland for the IBM-sponsored report.

More than a quarter of respondents say that cloud technologies are very critical to their overall enterprise IT strategy and 38% somewhat critical. IT professionals are even more likely to view cloud as vital, with 74% giving a positive response.

Cloud is being used across a range of business areas, with 30% of respondents saying that it supports the back office and the same percentage citing sales. Nearly a quarter tap cloud technologies for reporting and 16% for risk. The main benefits of using cloud are faster time to market, cited by 52% of respondents, and lower costs and increased business agility, both cited by 40%.

Although the cloud is becoming increasingly popular, most applications are still hosted and delivered on banks' own infrastructure, either deployed locally or enterprise wide via a private cloud. This is partly because security and storage requirements still complicate cloud adoption, with regulation considered very important by 65% when it comes to the selection of off-premises cloud services.

There is some confusion about the rules: asked whether they believe that personal data related to UK clients needs to be retailed in the country, 40% of respondents say no and 45% say yes.

IBM says that this chimes with its own experiences working with banks: "Putting aside the evolving landscape of data privacy requirements for personal information, regulators have provided little concrete guidance to the industry on what is and isn't acceptable, with much of the current regulation only focussed on traditional outsourcing models."

You can download the full report here. Finextra and IBM are also hosting a breakfast roundtable on the topic, featuring Richard Roberts from Deutsche Bank, David Zimmerman from IBM Global Banking & Financial Markets and Ian Sayers from Zapp. You can register your interest in attending here.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

07 May, 2014
07 October, 2013
30 September, 2013
09 September, 2013
31 July, 2013
22 July, 2013
23 May, 2013
10 January, 2013
11 July, 2012

Related company news


Top topics

Most viewed Most shared
UK sets out open banking API framework
14001 views comments | 96 tweets | 87 linkedin
European mobile banking service Pocopay go...
8029 views comments | 25 tweets | 14 linkedin
Deutsche Bank calls for co-operation with...
7402 views comments | 27 tweets | 30 linkedin
How to accelerate your fintech startup
7185 views comments | 33 tweets | 9 linkedin
Wearable payments startup Fit Pay secures...
6533 views comments | 26 tweets | 9 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job