Cloud Computing in the Financial Industry - A Road Paved with Security Pitfalls?

In the financial industry, Information Technology (IT) is an essential production factor, but also a major expense post. Because cloud computing promises to deliver IT services more flexibly and cost-efficiently, it potentially constitutes a “perfect match” for the financial sector. However, given the high degree of regulation, concerns regarding security and compliance requirements arise. In this work, we provide a detailed theoretical analysis of potential security problems in the context of cloud computing. This analysis is complemented by the initial results of an ongoing case study concerning the practical relevance of these problems in the financial industry. The analysis confirms that security issues pose notable obstacles for the adoption of cloud computing in practice, but also points to appropriate countermeasures.