Study Says European Financial Sector Still Doesn’t Understand the Cloud

December 28, 2015

While interest in the cloud technology is obviously growing quite quickly, a new study shows that the European financial sector still has some rather large misconceptions about the technology. The report, published by the ENISA, showed how far European banks and other financial institutions lag when it comes to using the cloud in their everyday business.

The report shows that while more than 87 percent of the companies in this report are using cloud computing in one form or another, most of those using the tech are not remotely knowledgeable when it comes to the best practices for the technology. One of the main issues is that quite a few regulators see outsourcing and using the cloud as basically the same.

Among the problems this has raised, according to the report, is that nearly half of the financial institutions surveyed have not developed a cloud risk assessment even though they are aware of specific risks associated with cloud computing. As Security Intelligence reports, there are a ton of different misconceptions about cloud computing, but the security aspect is likely the greatest threat. Without an understanding of basic cloud security, European financial institutions may risk their customers’ high-priority information.

The report also came with a number of different solutions to the problem, including that everyone should adopt a similar set of minimum cloud security protocols and privacy requirements. In order to familiarize companies with the technology, cloud firms should be willing to disclose how many people they have on staff, where their servicing center is located and how many people have access to sensitive information. By doing this, the company can help make financial institutions that much more comfortable, even as they learn more about the technology in general.

Edited by Kyle Piscioniere

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