Bank of England warns banks are too reliant on the cloud


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The Bank of England is calling for increased powers to oversee the shift from banking and finance to cloud computing.

His concerns stem from the adoption of the cloud which makes systems more secret and concentrates sensitive data in the hands of a few tech giants like Amazon and Microsoft.

The central bank said it would need “additional policy measures” to ensure it can assess the industry‘s IT infrastructure, even when managed by third parties.

“Frankly, we’ll have to roll back some of that, that secrecy that goes with it. It’s not in line with our goals, ”Governor Andrew Bailey told reporters.

The warning follows the transfer of its most sensitive computer systems to Google’s cloud. For businesses like this, the cloud allows them to spend less on their own data centers while leveraging the security and computing power of technology companies. The largest providers include Amazon Web Services, Microsoft Azure, and Alphabet Inc.’s Google Cloud.

Sam Woods, CEO of the Prudential Regulation Authority, said: “What we now have in motion are things that are much more integral to how banks work and these backbone systems, which could go to security and to solidity. “

The Bank of England has said it is working with the UK Treasury and the Financial Conduct Authority on how to tackle these risks. Regulators around the world are thinking about how to control systemic risks in finance and technology.

Want to learn more about topics like this from the senior executives in this space? Learn more at Financial and Banking Technology Cloud Summiton October 13, 2021, on how financial organizations are using cloud migration to gain competitive advantage.

Key words: bank of england, bank, cloud adoption, finance

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About Eleanor Blackburn

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