In today’s hyper-connected world, most of us now take care of our daily tasks with the help of digital tools, which includes online banking. Whether we’re reviewing our account balances, transferring money, applying for payment cards, or simply paying our bills, banking has become more digital, and requires financial firms to adapt to this new world of transacting business.
This adaptation has seen EU-based financial firms adopting and relying more heavily on cloud services. While financial entities such as banks and investment firms are staying digitally relevant by migrating their banking functions to the cloud, the scale, and speed at which they’re making this migration troubles regulators.
The EU Council is concerned that, in light of financial firms’ rapid growth and digitization, it will become increasingly tougher to address payment-related security vulnerabilities and subsequent cyberattacks. That’s where the Digital Operation Resilience Act – or DORA – comes in. The act intends to modernize the financial sector’s Information and Communication Technology (ICT) risk requirements in order to arm financial firms with the standards necessary to stand up to bad actors.
To that end, let’s cover how EU-based financial institutions are migrating their functions and market operations to the cloud, and how DORA can improve their cybersecurity posture.
The migration of EU financial firms
Long before EU-based financial firms began their migration to the cloud, banks in the United States and Asia had already begun embracing cloud computing.