Security Issues Hamper Cloud Adoption in Financial Sector
February 2017 by Marc Jacob
Netwrix Corporation introduce a visibility and governance platform for hybrid cloud security, extracted data about financial organizations from its 2016 Cloud Security Survey and released an infographic that reveals the key cloud security concerns of financial institutions.
More and more financial organizations are making a transition from on-premises to cloud-based services to support core business activities. According to Deutsche Bank Group, financial organizations could go from zero use of cloud computing to 20–30% within the next three years. This growing popularity of the cloud has initiated a discussion about cloud beneﬁts and risks to data and system security. Moreover, cloud adoption can be challenging for financial institutions due to stringent regulatory requirements and the increased number of data breaches, including the recent Mossack Fonseca and Qatar National Bank attacks.
Netwrix identified the following cloud security trends for the financial industry:
• Cloud scalability and flexibility are the key advantages. 67% of financial institutions appreciate the ease of cloud scalability, which enables them to quickly adapt to changes in organization size and market conditions. Other major cloud benefits include flexibility in resource utilization (50%) and high availability of systems (42%).
• Security remains the top concern. Most financial organizations (85%) are worried about the security and privacy of data in the cloud, and 17% are strongly skeptical, saying that they are not ready to move their IT infrastructures to the cloud because of security concerns. The major reason why financial entities are not ready to embrace the cloud is the risk of unauthorized access and account hijacking (80%).
• Visibility is the critical part of security guarantees. 58% of financial entities said that their own employees pose more of a threat to data integrity than anyone else. So it’s no wonder that 95% of organizations consider visibility into changes and user activities to be a critical part of cloud security, and gaining that visibility may help them become more willing to adopt cloud technology.