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Financial industry is leading the way on multi-cloud

(Image credit: Image source: Shutterstock/bluebay)

For financial institutions (FI), the shift to the cloud, as part of their digital transformation efforts, is of utmost importance. 

That's according to a new report from F5, which argues that FIs are moving forward despite having security concerns.

The company’s Financial Services edition of the 2020 State of Application Services (SOAS) report claims that six in ten of polled businesses see public cloud platforms as “strategically important” for the next half a decade. Rising from 49 per cent last year, public cloud adoption has thus earned its status of the industry’s “most important strategic priority”.

This is despite the fact that some worry over possible security issues. Just four in ten are confident in their ability to thwart cybersecurity attacks against their public cloud infrastructure.

"The idea that financial services applications would be the slowest to move into the cloud has been clearly disproven,” said Lori MacVittie, Principal Technical Evangelist, Office of the CTO at F5.

“Instead we are seeing the industry go ‘all in’ on multi-cloud adoption as organisations seek to increase the pace of their digital transformation and more quickly deploy the applications that will deliver a high-quality customer experience. Ultimately, financial services organisations that face growing competition from digital challengers are turning to the cloud to meet the needs of customers who now expect a seamless fintech service.”

As they move forward with various innovation initiatives, financial institutions are dancing on the thin line of security, the report further states, claiming that many are turning their attention to open banking. Almost half have either implemented it or plan on doing so sooner, rather than later.

Of those that have opted for open banking, more than two thirds are deploying API gateways which, among other things, help them securely share data with partners.

Describing the biggest challenges businesses are facing when managing their apps in a multi-cloud environment, most cited applying consistent security policies across all of their apps. App migration, visibility and performance optimisation were also mentioned.  

F5’s full report can be found on this link.