Banks are under increasing pressure to find reliable and innovative ways to increase operational efficiencies and reduce costs. At the same time, the COVID-19 pandemic ensured that banking institutions could not put off revolutionizing legacy systems to deliver the services and products consumers currently expect. This isn’t to say that banking institutions have been entirely resistant to cloud solutions.
Before the Covid-19 Pandemic, major banking institutions made the decision to start moving some of their main operations to the cloud. This move has presented many opportunities for improved agility and cost savings. On the other hand, it has raised security concerns, making other banking institutions hesitant to make the switch completely.
The good news is that several cloud security measures for the banking industry can help banks eliminate security concerns. Keep reading to discover the main concerns, features that solve them and the measures that can help eliminate these security issues.
Cloud Security for the Banking Industry: Main Concerns
Some of the major security concerns for cloud solutions in the banking industry include:
- Security System Misconfiguration: Security systems may leave crucial information vulnerable to attacks, especially when not properly maintained or configured.
- User Privacy: Most application users use weak public networks and passwords, meaning they don’t have excellent cyber security hygiene. That makes their privacy a major concern for banking cloud service providers and application developers.
- Distributed Denial-of-Service (DDoS) Attacks: These attacks are common with cloud systems, putting user data at high risk.
- Concentration Risk: Banking institutions with all their data concentrated on a single cloud completely depend on one CSP’s security and reliability.
Features that Solve Security Concerns in the Banking Industry
In order to address the security concerns discussed above, cloud service providers offer different features, which include the following:
- Data Backups: By backing up data to different locations, financial cloud service providers can reduce the risk of losing information during cyber attacks.
- Encryption: Financial cloud security solutions use the latest encryption technology to keep the most crucial data.
- Industry-Standard Security Certifications: Top-notch cloud service providers usually comply with industry security standards like Service Organisation Control Type Two.
How Financial Banking Institutions Can Mitigate Cloud Security Risks
While cloud service providers are working tirelessly to fight any security concern or issue that arises, banks also need to have some measures in place to help them mitigate cloud security risks. The best practices and measures include:
- Implement Robust Security Controls: Banking institutions’ cloud security controls need to be comprehensive and strong. They should cover main areas like intrusion detection, secure data storage, prevention systems and firewalls.
- Establish Clear Security Policies: Banking institutions’ cloud security standards need to be concise and clear. They should address topics such as data protection, vulnerability management, and access control.
- Regularly Monitor Cloud Security: Banks should monitor their cloud security systems regularly to detect and address any potential vulnerabilities.
- Train Workers on Security Best Practices: Banks need to ensure their workers know cloud security risks. Workers should be properly trained to protect bank information when using and storing it.
If you’re looking for a scalable and secure data storage solution in the banking industry, cloud computing is an excellent option in your digital transformation way. While a few potential security risks are associated with this technology, they can be easily mitigated via industry-standard encryption as well as security features.
The benefits of using cloud data storage services in the banking industry are many and outweigh the risks/security concerns, making it a perfect option for banking institutions looking to remain ahead of their main competitors.