Cloud service providers are playing a larger role in payments, having moved beyond storing bank data into core services. But as cloud providers begin more efficiently processing payment methods and providing fraud mitigation powered by artificial intelligence and machine learning, financial institutions need to be aware of the associated risks.
Operational considerations are becoming more important as cloud partnerships become more complex. Cloud service providers are joining a growing lineup of third-party vendors that banks are using to operate various parts of their business. A vendor may be able to help streamline certain processes and lower costs, but each partner also comes with a particular set of expenses and risks. This Javelin Strategy & Research report delves into ways the expansion of cloud services benefits consumers and FIs—and the ways more diligence is required with regard to risk and compliance.
Key questions discussed in this report:
- What has spurred banks’ increased reliance on cloud providers for core services?
- What are the risks of this increased reliance?
- How can banks better manage the use of third-party cloud services, costs, regulatory concerns, and other potential stumbling blocks?
Amazon (AWS), Bank of America, BNY Mellon, Capital One, Chase, Consumer Financial Protection Bureau (CFPB), Discover, Federal Trade Commission (FTC), FedNow, Financial Data Exchange (FDX), Goldman Sachs, Google, ISO 20022, KeyBank, Microsoft (Azure), OAuth, PCI DSS, The Clearing House RTP, Treasury Department, UBS, U.S. Bank
Learn More About This Report & Javelin
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