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


Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Transforming document management into a strategic advantage for financial institutions
In this exclusive fireside chat, John Rockliffe, Pre-Sales Manager at d.velop, discusses the findings of Adapting to a Digital-Native World: Financial Services Document Management Beyond 2025 and explores how FSIs can turn document workflows into a competitive advantage.

Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.

Achieving operational resilience in the financial sector: Navigating DORA with confidence
Operational resilience has become crucial for financial institutions navigating today's digital landscape riddled with cyber risks and challenges. The EU's Digital Operational Resilience Act (DORA) provides a harmonised framework to address these complexities, but there are key factors that financial institutions must ensure they consider.