IBM drives innovation with new Cloud for Financial Services
"With a focus on data security delivered with IBM's confidential computing and sophisticated encryption capabilities, we aim to reduce risk in the supply chain for banks, insurers and other financial services industry players, and at the same time accelerating the time by which they can drive and consume innovation,” explained Howard Boville, Head of IBM Hybrid Cloud Platform.
Cloud for Financial Services was developed in conjunction with several high-profile FSIs, including , , , and others. Furthermore, the platform’s broader ecosystem is supported by over 90 partners, software vendors, and SaaS providers.
Enabling open innovation
The addition of Red Hat OpenShift is critical: FSIs will be able to control virtual machine workloads and maintain granular control over compliance.
"We find the platform helps demonstrate security and readiness for regulatory compliance more efficiently and can bring significant value to the financial services supply chain,” commented Fidelma Russo, SVP and GM, Cloud Services Business Unit, VMware.
Partnering on digital transformation
BNP Paribas has been named as one of the first FSIs to employ IBM’s new platform for onboarding its workloads and ecosystem partners. The bank has, so far, migrated 40 apps and plans to accelerate in the coming years. Bernard Gavgani, Global CIO, BNP Paribas, explained:
“IBM has been our long-time partner in large part for their knowledge of cloud technology, security, including data encryption, and deep industry expertise associated with banking regulations. We're collaborating with IBM to establish a BNP Paribas-dedicated cloud that is compatible with all the constraints that are imposed by regulators throughout the world.”
Report: Financial institutions face cloud-based threats
Over one year into the pandemic, different financial institutions report costly consequences to falling short of protecting their data storage from cloud-based attacks and network disruptions. The report is based on more than 800 responses from IT professionals working in the financial services industry in North America, Latin America, Europe, and the Asia-Pacific region.
- Data breaches are an increasingly significant cost burden for the industry: Worldwide, financial firms that experienced a data breach reported estimated average losses of roughly $4.2 million per attack, with U.S. organisations hit hardest at $4.7 million in estimated losses.
- Network outages also result in costly burdens: Institutions lose an estimated $3.2 million on average with Asia-Pacific followed by European institutions carrying the heaviest losses at $4.3 million and $3.1 million respectively.
- The industry remains a popular target for cloud-based attacks: Over half of all organisations (54%) surveyed suffered a data breach in the last 12 months with 49% plagued by a cloud malware attack as well.
- Cloud and network-based attacks will continue to be a major threat vector: More than 50% of respondents expect to face a combination of IoT attacks, cloud vulnerabilities including misconfigurations, and data manipulation attempts over the next 12 months.
- Threat resolution teams are embracing network visibility for security hygiene: Globally, network monitoring (76%), threat intelligence (64%), and threat hunting (57%) are considered the most effective mitigation tactics against these threats.
Even before the pandemic, tech companies were increasingly seeking moves to the cloud. The COVID-19 crisis has accelerated the adoption of cloud computing by the financial sector as part of its process of digitalisation. As companies transition and move data, there can be a lack of protection due to a number of factors such as undertrained staff and insufficient firewalls.
“The financial services sector has long been a target for bad actors who are following the cyber money trail into the cloud,” said Anthony James, VP of Product Marketing at Infoblox. “As the pandemic pushed IT infrastructures to rely on remote work, cloud-based technologies that enabled digital transformation also created soft spots for cyber criminals to exploit.”
“This report shows us that cloud compromise has become the biggest cybersecurity issue for financial institutions and the investments they are making to protect themselves,” James continued.