Banking executives have long recognized the potential of using cloud computing to increase their systems’ capacity for various client-facing services, including lending and mobile banking, but not many have made the transition to the cloud, according to The New York Times.
The main reasons for the slow adoption are strict government regulations that make it difficult to implement changes swiftly, the constant risk of cyber attacks made more likely by computing via the Internet, and old computer systems that some companies are finding difficult to transition from.
Nevertheless, moving to the cloud is a positive move for the financial industry, said Goldman Sachs CEO David M. Solomon, as long as the process is conducted “with high levels of security and real protection of data and information.”
Accenture reported in a survey that banking companies in North America could double the current 12% of tasks they perform in the cloud over the next two years.
Among the major banking firms that are making the jump to the cloud are Wells Fargo, Morgan Stanley, Bank of America and Goldman Sachs. The Financial Industry Regulatory Authority has already completed its cloud migration, freeing up millions of dollars previously spent on managing its servers.