Explained | Security concerns over moving banking data into cloud

The story so far: Indian banks have urged the Reserve Bank of India to allow cloud adoption and lay down rules for it as they feel it is important for the digital makeover of the traditional banks, and to help them compete with their digital-native competitors. Cloud services that span across both public and private clouds are at a sweet spot of delivering data for the new age needs of banks, Nayyar added. Moving this financial data to the cloud poses security concerns like lack of visibility into a cloud service provider’s security measures and the related incident alert and audit information. Some banks may conveniently choose to separate sensitive data from low-risk data by hosting high-risk data in a private cloud and moving low-risk data to a public cloud, to avert security risks, according to Nayyar. “I firmly believe hybrid cloud architecture is the way to go by placing the right kind of data in the right architecture,” Srinivas Rao, Senior Director, System Engineering, Dell Technologies India, said to The Hindu.