Cloud providers to UK banks ‘could face resilience testing’

BigTech providers of cloud services to UK banks may now have to undergo resilience testing to ensure they meet minimum standards according to a senior Bank of England (BOE) official.

Victoria Saporta, executive director for prudential supervision at the BoE, called maintaining the continuity of the cloud services banks rely on "a big topic both within the UK and internationally".

Saporta recommended a “global approach” to maintaining the resilience of cloud services at an event held by the Institute of International Finance reported by Reuters.

The news comes after the Bank of England said in a July report that increasing reliance on a small number of cloud service providers (CSPs) could “increase financial stability risks” without greater regulatory oversight.

The Financial Policy Committee (FPC) has previously highlighted that the market for cloud services is highly concentrated among a few CSPs, which could pose a threat to financial stability.

Cloud migration has strong support within the banking community internationally; JP Morgan chief executive Jamie Dimon has highlighted a reliance on legacy systems as a weakness for banks, which he said need to be moved to the cloud if they are to ‘remain competitive’ in his annual letter to shareholders in April.

The public cloud services market is highly concentrated between a small number of providers; last month Andrew Bartels, vice president and principal analyst at Forrester put Amazon’s share of the market at 56 per cent, with Microsoft Azure having a 33 per cent share, and Google Cloud having a 15 per cent share.

    Share Story:

Recent Stories


The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.