Data privacy not security is key concern

Chris Lee

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.

Chris Lee

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#4 plus500 logo81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    FXTM Logo
    FxPro logo
    XM Logo
    eToro Logo
    plus500 logo
    AvaTrade logo
    BlackBull Logo Small
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.