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Top financial institutions form European Cloud User Coalition

Top financial institutions form European Cloud User Coalition

A coalition of top European financial institutions has been formed to develop common security standards and best practices for the use of cloud technology in the EU.

The European Cloud User Coalition (ECUC) has been established by Allied Irish Banks, BAWAG Group., Belfius Bank, Commerzbank, Deutsche Börse, EFG Bank, Erste Group Bank, Euroclear, ING, KBC Bank, Swedbank and UniCredit.

Private clouds have been widely used throughout the banking industry, however public cloud platform are becoming increasingly important due to their flexibility and scalability, as well as high-quality security and resilience standards.

Hopwever, the reliance of EU banks on third party clouds provided by a limited number of US entitites has recently become a focus of regulatory attention at the European Central Bank, which has bemoaned the absence of an EU challenger capable of taking on the might of Big Tech cloud providers from the overseas.

Besides winning new members ECUCs objective is to jointly agree on EU-grade security standards and best practices for the use of cloud technology and to use their collective muscle to enforce such standards on non-European cloud players.

“This coalition enables ING to adopt a hybrid cloud setup for analytics and AI, that brings us up to par with the fintechs and bigtechs of this world, says Kerem Tomak, chief analytics officer and initiative lead at ING. "It allows us to improve our digital capabilities and offer customers better, faster and more personalised experiences."

As a first step, ECUC will publish a paper with requirements for cloud services during 2021. The paper will consider all aspects of the basic European regulation and the data localisation provision, including General Data Protection Regulation (GDPR) requirements.

Comments: (1)

A Finextra member
A Finextra member 01 February, 2021, 15:46Be the first to give this comment the thumbs up 0 likes

A problem with the cloud is that the servers with the data are physically located in different countries, not always under the control or even know-howof the cloud user company. The authorities of a location country can based on domestic legislation get access to the data, copy, analyze and decide on action without the user company even knowing that this acccess has taken place. Financial institutions using cloud should be obliged to disclose to end user customers that their data is managed is such a way. EU member states also start to demand that data and critical processes to society must reside within the member state and any cloud then must be "domestic only".