New tech in finance could lead to security risks

New tech in finance could lead to security risks

The banking industry, as with so many areas of the modern business climate, has found itself playing host to new tech areas like cloud computing. This rapid progress has not come without a cost, however. As Information Management recently reported, leaders in the financial industry have become confused and concerned regarding the future of data security efforts and the compliance effects this could have.

Banks cautiously upgrade

Banks are subject to a number of IT restrictions designed to safeguard consumer payment information. This has brought intense focus to efforts to bring technology up to date in the field. Information Management described, as an example, a cloud email transition at a local bank in Kentucky. The institution made the switch after a disastrous crash, hoping the cloud would bring stability. However, there is a general lack of clarity in cloud-focused bank restrictions.

The source stated that firms may have to take their IT security measures into their own hands. With a general lack of clarity afflicting the security industry, it could make a significant difference in the success or failure of a banking initiative whether IT managers carefully inspect incoming cloud computing vendors. The current cloud computing rules that exist in many countries stipulate that financial firms must keep key parts of any cloud environment separate from other firms' data and ensure that there are significant security features in place.

Health goes along

Banking is not the only heavily regulated industry making a move toward powerful new tech areas. According to AdvanceWeb contributor Jason Hunter, companies have begun development on specialized cloud services designed to meet security guidelines. These systems are expected to help the speed and quality of care. Firms searching for data protection, however, may have small IT departments unable to keep information safe. Such companies could benefit heavily from managed security services.