Lack of common regulations is the main barrier to cloud adoption for financial services institutions (FSIs) in the Asia Pacific region, agreed panelists at this year's Cloud Expo Asia.
Titled Cloud Computing in Finance, the panel discussion participants included Marcus Tu, regional infrastructure lead for APAC of AIG APAC Holdings; Keith S. Chan, first VP of the IT group at the Philippine Business Bank; and Arun Mehta of Private Banking IT APAC.
"The Asia Pacific region is made up of more than one country and each country has its own regulator," said Mehta. "FSIs thus need to ensure that they will be able to be compliant with the different security standards set by each regulator before adopting the cloud, which can be challenging."
Adding on to that challenge, some regulators in the region have yet to roll out clear guidelines to cloud adoption for FSIs. " Even though regulators aren't discouraging FSIs to move to the cloud, some have not published prescriptive guidelines for cloud," said Tu. This may cause FSIs to be reluctant to adopt cloud services in those countries for fear that the regulators might not approve it.
Tu, however, did note that regulators in the region are updating relevant existing frameworks, such as outsourcing guidelines, to include issues pertaining to cloud. The common issues include knowing where the data resides, ensuring auditability of the data, and that the cloud services they adopt comply with the country's regulations.
To conclude the discussion, Chan said: "There is a need for common guidelines on cloud adoption and usage for FSIs in APAC. Even though there will never be a framework that satisfies everyone, having a common guideline will enable FSIs to be more confident about moving to the cloud."
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