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Cloud Tech is Friend Not Foe in Quest to Achieve Greater Trust in Data Sharing and Availability

The European economy’s pace of digitisation is hitting new heights. As a result of this, the 2030 vision for tech on the continent is now one of greater openness and collaboration. But what is helping achieve this? One factor is the European Commission‘s Data Governance Act. It aims to overcome barriers to the reuse of data, increase trust in data sharing and improve data availability.

According to Jerome Dilouya, CEO of InterCloud, this culture of increased cooperation will place added scrutiny on financial institutions. Especially those who are responsible for protecting large quantities of sensitive customer data. Research from IDC revealed that as of September 2022, 83 per cent of banks are utilising public and private cloud platforms.

Jerome Dilouya, CEO of InterCloud,
Jerome Dilouya, CEO of InterCloud,

Dilouya believes that banks and other financial institutions should leverage the capabilities of multicloud environments to effectively meet new challenges. Institutions must ensure that they carefully interconnect environments in a safe and coherent way.

Dilouya says: “Financial institutions face an ever-changing threat landscape in their pursuit of digital transformation, with the industry’s growth hinging on the success of this transition. Consumers and businesses alike now favour more remote and digital interactions. Furthermore, the digital transformation of other sectors is driving the need for banks to modernise their customer service.

“Common barriers to cloud adoption include the complexity of legacy systems, trust and skills gaps, regulatory uncertainty, and the fragmentation of compliance requirements. Banks also face technological challenges associated with infrastructure, applications, processes, data, and customer engagement, as they grapple with the ever-increasing amount of data they collect while simultaneously pivoting to counter cyber threats.

“Some leaders at businesses we work with in the banking, financial services and insurance industries have recognised these obstacles. In response, they are adopting an open, hybrid multicloud approach. This can help to balance innovation with security and compliance requirements.”

A worthwhile risk

There is an element of risk to the transition to cloud, which Dilouya acknowledges. However, he also highlights the importance of embracing network autonomy and favouring an agile cloud environment.

Dilouya continues: “While the cloud offers great promise, it also presents a danger for banks. Specifically, those who could get caught-out by shifting to the cloud too hastily and without due preparation. An overzealous approach often exposes vulnerabilities. This is because sensitive data is transferred not only ‘to’ the cloud, but also ‘in’ and ‘across’ multiple cloud environments.

“However, refusing to change based purely on potential challenges will lead to stagnation or worse. Especially in light of research from the Bank of England last year, which revealed that cyberattacks are the biggest risk to the UK financial system. Financial institutions relying solely on internet service providers (ISPs) relinquish all control over network availability, security, and confidentiality.

“If malicious third-party networks manage to intercept traffic or if the network suffers a denial-of-service attack, this poses a risk of losing the connection needed to allow certain applications to function properly.

“More complex needs require the more agile and dynamic use of a variety of routes – all credentials of a multicloud environment. Financial institutions, therefore, should implement secure interconnection interfaces. They must adapt this infrastructure to combat new businesses challenges.”

Dilouya concluded: “In the current climate, where customer behaviours and expectations are continually evolving, flexibility and adaptability are key. Banks looking to accelerate their digital transformation will benefit from a multicloud environment. They will only reap these rewards though if they also pay attention to how they interconnect their environments in a smarter, more secure way.”

Author

  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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