Over the last few years, there
has been a rapid acceleration of cloud adoption in the financial services
sector. In a globally competitive environment, the financial services sector is
continually building upon improving customer service in a safe and secure
environment. Since this report was published in 2015, there has been updates in
outsourcing guidelines among Financial Regulators across the region. There have
also been developments in technology whether it be blockchain, fintech or other
financial service developments. There is
an improved understanding of cloud services from regulators, and more nuanced
outsourcing guidelines, which by-and-large has led to an uptake of services
from the financial services sector.
But as always, there is more to
This report provides an update
of jurisdictions which have updated their guidelines since 2015, and provides clear
concise recommendations for regulators. It is imperative that regulations
should start to work towards a consistent definition of outsourcing between
jurisdictions. Definitions of outsourcing vary from country to country. This
should be consistent across the region to ensure efficient use of services as
well as to reduce compliance requirements.
There also needs to be a clear
distinction of services deemed material or critical to FSIs, and those deemed
Banks and the financial
services sector have been using cloud computing for years in areas such as web
content management and customer relationship management software.
Some institutions are looking
towards moving core systems to the cloud to offer greater flexibility, and
This will be a challenge or
opportunity for regulators and cloud service providers for the decade to come.