The EU Banking Authority (EBA) has warned financial institutions moving to the cloud are risking their freedom by being locked into using particular vendor’s service and being forced to onboard subcontractors from “high risk areas”.
The EBAs report “on the prudential risks and opportunities arising for institutions from fintech” highlighted cloud servces as one of the seven key risks and opportunities to financial institutions, alongside other technologies such as blockchain and Big Data.
The report explained that businesses choosing to use the cloud are putting both their own organisations and others in the sector at risk because “large suppliers of cloud services could become a single point of failure should many institutions rely on them”.
