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Data privacy not security is key concern

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A global survey of professionals in the financial services sector found that security is currently not their main concern. Senior technologists and market data managers took part in the new research by Thomson Reuters, the Financial & Risk business and information specialists. With financial sector operators increasing their use of public cloud systems to manage data, ranking the concerns of those tasked with maintaining the integrity and protection of information is essential.

The survey found that the top three concerns when using public cloud systems currently are:

  • data residency
  • data privacy
  • losing control over data

Of those who took part in the poll, 24% cited data residency as their main concern. Data privacy came in second, as 19% said this was their primary worry. Losing control over data was in third place with 18% of respondents putting it at the top of their list of potential issues.

Of the financial firms surveyed, 82% thought that the need for greater security would positively affect movement towards adoption of public cloud systems. Only 12% believed it actually worked against cloud adoption.

Financial institutions are adopting the cloud as a centre piece of their strategies to manage financial data in increasing numbers. The survey found that across the board, financial firms were planning to increase their investment in cloud tech. At the present time, around 30% of IT budgets is dedicated to implementing cloud systems, and this will increase to 47% by 2019, according to the study.

Concerns about using the cloud because of security issues have worried financial institutions for some time, as holding and managing highly sensitive information about clients in a heavily regulated industry must be handled properly.

Providers of public cloud systems have adapted their offerings and invested in security solutions that are setting industry standards and allaying the worries of financial operators.

With recent data legislation such as the GDPR being introduced in Europe, the need for increased security in data privacy and data residency are now paramount issues, as breaches and losses can lead to heavy fines and other repercussions.

Global Head of Enterprise Proposition & Product for the Financial & Risk business at Thomson Reuters, Brennan Carley, said: “As financial institutions increasingly leverage cloud technology to manage their financial data needs, firms will always need to ensure that sensitive data remains completely safe.”

It isn’t just new regulations such as GDPR that are focusing attention on data. Recent high profile data privacy scandals have also brought the issues involved under the spotlight.

However, wide-ranging improvements to cloud tech in terms of security is opening up opportunities for the financial and forex sectors to innovate. With emerging tech like AI and machine learning only just beginning to make a real impact, the future for handling data privacy is rapidly evolving.