In a report looking at financial services
regulations across the Asia Pacific (APAC) region, Singapore and Hong Kong have
come up on top as having the most favourable policies for cloud adoption. Cloud computing technology is redefining the way financial services institutions
(FSIs) respond to new consumer habits, says the Asia Cloud Computing
Association (ACCA). At the same time, FSIs must address the need for data
protection and privacy, and other heightened compliance requirements. The
Asia’s Financial Services on the Cloud 2018 report was designed to provide a
snapshot of Asia Pacific (APAC)’s financial regulatory landscape, and how certain
types of regulation could enhance — or impede on — FSIs’ ability to use cloud services.
This new report is an update of a report initially
published in 2015.
According to Gartner, cloud computing
is projected to increase to USD162B in 2020 attaining a compound annual growth
rate (CAGR) of 19%. 74% of Tech Chief Financial Officers (CFOs) said cloud
computing will have the most measurable impact on their business in 2017.[1] The IDC
expects that 2017-2018 will be a tipping point for cloud uptake among
Asia/Pacific banks. According to the IDC at least 80% of these banks will run
on a hybrid cloud architecture by 2018. [2]
“Cloud computing
is transforming the financial services sector by presenting a viable, secure
and cost-efficient model for delivering customer
centric services,” says Sassoon Grigorian, Chair of the ACCA Financial
Services Industry Special Interest Group. “There have also been developments in
technology whether it be blockchain, fintech or other financial service
developments, which further drive the need for cloud.”
“A suitable regulatory
framework is necessary for FSIs to reap the full benefits of cloud computing. The
ACCA is keen to support APAC regulators on this front, and has proposed some recommendations
for policies that support cloud adoption,” says Sassoon Grigorian. “These include a consistent
definition of outsourcing between jurisdictions and a clear distinction between
services deemed material or critical to FSIs, and those deemed non-critical.
Regulations should also make the distinction between control versus possession
of data clear, and define the roles and responsibilities of a data controller
accordingly.”
“APAC FSIs’
utilisation of cloud services has grown significantly over the past few years
as we see regulators’ improved understanding of the technology reflected in
more nuanced outsourcing guidelines,” adds Lim May-Ann, Executive Director for
the ACCA. “Use cases are becoming much more established and, with an
appropriate regulatory framework in place, we envisage the migration of more
business-critical processes and applications to the public cloud to become more
prevalent, and drive this upward growth trajectory into the coming years.”
The report
notes that Hong Kong, New Zealand, the Philippines, Singapore and South Korea
have made positive steps in improving regulatory clarity since 2015. However,
the APAC region writ large still has some way to go in breaking down the
barriers to cloud adoption — data localisation requirements and excessive
administrative burdens that threaten to erode essential cloud computing
benefits need to be reviewed for APAC’s financial services sector to truly
embrace transformative use cases.
The report
also analyses emerging regulatory trends in the region that have the potential
to influence cloud appetite, comparing the relevant regulations across nine
APAC markets, in 10 specific areas: 1. Due diligence process for cloud
adoption, 2. Review, monitoring and control, 3. Audit, 4. Confidentiality and
security, 5. Resilience, business continuity and disaster recovery, 6. Data
transfer and location, 7. Data use limitations, 8. Data Segregation, 9. Cloud
contracts and subcontracting, and 10. Exit and termination. Case studies
showcasing how FSIs are reaping the benefits of cloud are also included.
The report
will be launched on 30 April 2018 in Singapore, in partnership with the Association of Banks in Singapore
at 8am, Salesforce Singapore office,
Level 13, Suntec Tower 5, Temasek Blvd, and can be downloaded at http://bit.ly/ACCA-FSI2018. For
interviews, please reach out via the contact points below.
About the Asia Cloud Computing
Association
ACCA is the apex industry association
representing the stakeholders of the cloud computing ecosystem in Asia-Pacific.
The ACCA’s mission is to accelerate adoption of cloud computing in Asia by
helping to create a trusted and compelling market environment and a safe and
consistent regulatory environment for cloud computing products and services. The
association works to ensure that the interests of the cloud computing community
are effectively represented in the public policy debate. Drawing on
subject-matter expertise from our member companies, expert working groups, and
special interest groups are convened where best practice
recommendations and other thought leadership is designed
and produced.
To find out more on how to join us,
email [email protected], or visit our website at www.asiacloudcomputing.org
