The UK banking sector requires either a government or industry created “UK financial services cloud,” according to Alan Grogan, chief analytics officer at the Royal Bank of Scotland (RBS).
As reported by Computing, he says the banking industry needs a dedicated cloud service to benefit from its advantages, but requires a system that is specially adapted to mitigate the risks associated with migration.
“I think banks obviously want to go to the cloud because of the costs, benefits and deeper level of security,” Grogan claimed.
“Instead of having various risk, resilience and security teams looking at a largely widespread global internal infrastructure, if you go to the cloud and do it correctly, you can divide installations between the specialist teams, so in theory, it becomes a lot more protected in my view,” he added.
The banking tech expert believes his ideas could stretch across all financial services, rather than being limited to just banks. He views it as a “fantastic statement” should industry or the government commit to the idea of a dedicated financial cloud, claiming this would draw experts into the project.
Despite this, Grogan worries banks will not take the lead, although there has been a shift in attitudes towards the cloud in the sector.
“No bank will want to lead on it or push for it, because for something like payment infrastructure we would need a collective bringing together of organisations,” he said, with suggestion that banks need to “sort their backyards out first.”
Citing the example of US healthcare making the move to the cloud, Grogan said he does believe that in time, banks will also make the move.