Cloud computing has yet to gain real support among banks, many of which are concerned about security and potential risks of a technology they view as immature, according to a survey of business and technical banking executives conducted by independent research firm TechMarketView in conjunction with banking systems provider Temenos at Temenos' annual client forum in Monaco this May.
Banks have been slow to adopt cloud computing in a production environment, although bankers accept its potential for cost savings, according to the survey, which found that 44% of bank executives see the lack of data security as a significant barrier to the adoption of cloud computing. Reflecting the underlying lack of maturity and confidence in cloud computing, only 15% of respondents said they were running cloud applications today. The survey showed that 80% of respondents could not name a leader of cloud computing in the banking sector.
Respondents described cloud computing as 'commodity' computing resources accessible over the internet at lower cost, with both business and technology executives consistent in their views. Nearly half of the banking executives said they viewed cloud computing as means to cut infrastructure costs, while over a third thought it would give more cost flexibility. However, a further one third of executives admitted they simply 'didn't know enough' about the potential risks.
Koen Van den Brande, group strategy and marketing director at Temenos, said the results of the survey were “an interesting finding and… broadly in line with other reports on the cloud computing subject. [The results] seem to infer that it is likely that adoption may be slow in banking until some of the critical issues are resolved."
Half the participants were C-level executives, with the remainder a mix of IT management, project managers, department heads and IT architects. The majority of respondents worked for mid-market banks (assets of between $10-$250 billion), the most prevalent (nearly 40%) classing themselves as universal banks.
This article can also be found at SecuritiesIndustry.com.
Alexa Jaworski is senior editor of Securities Industry News, a SourceMedia publication. She can be reached at alexa.jaworski@sourcemedia.com.
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