In the midst of the Covid-19 pandemic, the banking sector has witnessed a major transition. The banking industry has moved to a nearly complete virtual model, where online banking channels are being used extensively by customers.
As the reliance upon online banking channels increases, so does the need to enhance cyber security measures around them. We are also constantly witnessing a rise in the use of cloud computing to power these modern banking operations.
However, when performing banking over cloud based channels, the stakes in terms of cyber security rise even further. In case of public cloud technologies, sensitive financial and customer information travels to and fro between banks and the cloud.
According to a recent report that covered investment trends in the banking sector, we may witness a sharp increase in investment by banks in cloud security. This is not only being done to secure sensitive data, but also to meet stringent compliance standards.
The report in question provides an overview for the period between 2020 and 2024. As per the report, banking institutions are expected to increase investment in cloud security at a Compound Annual Growth Rate (CAGR) of nearly 33%.
This forecast speaks volumes about the increasing reliance on Cloud Service Providers (CSP) like dinCloud to power banking operations globally. This increasing trend also indicates that the cloud is set to take even a more central stage in the banking sector.
This trend can also be attributed to constant efforts and investment on the part of cloud providers like dinCloud to further improve their cyber security protocols. One more factor that was highlighted in the report was blockchain.
Despite the concerns surrounding crypto currencies and blockchain technologies, more and more people are perceiving these technologies to assume even more influence in the months and years to come.
If this is to become a reality, then security of blockchain solutions will also be equally important. One reality is undeniable though, the influence of cloud computing solutions in the banking sector is set to increase at a rate never witnessed before.