It was recently reported that UK financial regulators were concerned about the sector’s reliance on cloud computing providers.
Indeed, according to the Financial Times, this reliance could become dangerous as it might leave banks vulnerable to service outages and hacks. The Prudential Regulation Authority (PRA) is then trying to find ways to access more data from Amazon, Microsoft, or Google, which are offering services to reduce IT costs by migrating to the cloud.
UK Banks that are using cloud computing are covered under the PRA’s operational resilience framework, yet, a few large companies are recently been experiencing problems such as outages. Hence, UK financial regulators are looking to tackle the rise of cloud service providers within financial systems. This could lead to new policy measures and legislation.