Cloud Computing In Banking Industry – Strategies for Adoption, Implementation and Security
Abstract
The use of cloud computing has triggered many issues in the banking industry because of the emerging trend in its adoption, implementation and security. It is notable that the users of the services are private financial institutions. This elaborates the fact that cloud computing has effect on the bigger banking institutions. The services provided by cloud computing are relevant for the banking institution even though it may be possessing negative effects on the operation of the latter. This triggers the need to study the computing cloud issues relating to the three (adoption, security and implementation) in order to determine ways of making the services appeal to the banking institution.
Introduction
What are the strategies for adoption, implementation and security that the bank would have to consider? This question normally arises before the incorporation of cloud computing into the banking services. Cloud computing is one of the disrupting innovations, in the banking industry that allows banks to offer services to their customers at a lower cost while still ensuring higher yield in production (DURKEE, 64). The adoption of cloud computing has brought the question of which strategy a bank needs to employ to ensure it is compatible with cloud computing (Shimba, 47). The banks should always identify the correct strategies which will help in achieving a successful cloud computing, otherwise the latter will not help in achieving the mission of the bank. The banks would also have to identify the implementation strategy and cost it would involve ensuring that the cost does not exceed the amount of capital owned. Another prior step to establishing cloud computing will involve the banks determining the security of cloud computing when introduced into the operations. These will help the bank in determining the amount of capital that it would have to involve for the incorporation of cloud computing in its operations (Shimba, 47).
Literature review
Strategies for adoption
A bank will need to consider a variety of concepts before determination of strategies for adoption. The bank would need to identify what services it would like offer through the cloud computing and the subsequent necessities found in the service catalog. Another consideration would be on identifying application that is compatible with the advantages of cloud computing. The bank would then have to identify the appropriate road map in relation to integration of cloud computing. After all these consideration, the bank would have to analyze the adoption of computing cloud services in terms of barriers and the drivers constituted by the services (DURKEE, 64). This acts as the important step in integrating the services since it enable the bank to plan for the fortunes it will be facing. Research have shown that the main driver of cloud computing is the need for flexible and scalable IT resources. The bank will need to have an effective IT department which acts in managing the services by cloud computing. The use of cloud computation highly depends on the expertise from IT field and the need for optimization of the organization’s resources. It is also essential that the bank determine the barriers related to adoption, which always relates to the presence of security. This arises because of the increasing security awareness programs and trainings (Cohen, 15). Another barrier is integration issue presented by the system; usually affecting the organization with no technical nature.
Implementation
Implementation of cloud computing involves several factors that a bank would have to put into consideration. The user must have the chance of using the resources whenever they demand them thereby promoting agility of the system. The implementation of the cloud computing also involves considering the cost whereby the user must pay for the resources depending on the usage. The services must be available in the internet besides receiving the services through multiple redundant sites (Ristov, 78).
Security
The security associated with cloud computing depends on the psychological reactions it imparts on the client and the way it addresses the potential security risks. Even though, cloud computing may seem to be important to the bank; there are security challenges that usually come with its incorporation. Some possible sources of insecurity include confidentiality, integrity, availability, privacy, and auditability (Cohen, 15). The bank would have to go exhibit loss of governance since the services by cloud computing always transfer control to the provider. This leads to the insecurity of clients data since the provider can easily have access to them. The cloud services also make the bank go through lock-in, due to lack of tools between applications and services thereby forcing the clients to depend on the service provider (Shimba, 35). Another security challenge is isolation failure due to the sharing of resources, which is a characteristic of the services. The services do not offer separate storage means for the client thereby posing threats of hoping attacks. Data interception, a characteristic of cloud computing, also makes it susceptible to replay attacks and spoofing (Shimba, 35). The banks should always consider this security issues and find ways of adapting to them without witnessing losses, before adopting the cloud computing services.
Proposed methods
This research system will adopt qualitative research method to obtain accurate and reliable findings in relation to the research question. Qualitative research method will enable the research to enhance its findings in relation to the human aspect of the research topic thus offering accurate examination of the cloud computing within the banking sector. This methodology is appropriate in that it provides human aspect of the research question such as opinions, beliefs, ethics, contradictory behaviors, and challenges. Since the method is a scientific procedure, it will obtain accurate and valid results with reference to research questions (Roxaneh Charkhchi, et al, p. 106)
The research will apply questionnaires, conduct interviews, and surveys as types of qualitative research methods. These instruments are vital in relation of acquiring accurate findings under large samples or population of the study. Questionnaires, interviews, and survey research instruments would enhance the quality of the research because the researcher has the opportunity to improvise while dealing with the respondent (Levin p. 1854). This enhances the process of obtaining reliable results from the field to relate to the research questions and hypotheses. These research instruments would also reduce elements of biasness in relation to the research process. This is through effective and efficient application of random sampling that blends with the research instruments (Aksu p. 203).
The population of the study will be approximately 400 persons who relate to the banking industry. 250 of the study population will include banking personnel and financial advisors to provide accurate information with reference to the research questions and hypotheses. The remaining 150 slots would include consumer under the banking industry. This sampling will offer accurate opportunity for the research to obtain reliable data concerning adoption and implementation of cloud computing in the banking industry. The sampling of the population of the study will be random in order to reduce or minimize elements of error and biasness in the execution of the research. Interviews, surveys, and questionnaires will be structured in such a manner that they address all aspects of the research questions and hypotheses. Reliable data would include accurate results in relation to the adoption, implementation, ethical, and challenges that might develop because of cloud computing within the banking industry. In order to acquire effective and efficient research findings, methodology would also include extensive literature review to relate the study with the previous experiments on the same issue. This would validate the research process to foster the process of generalization of the findings. Literature review will focus on valid and up-to-date secondary sources. The aim of this extensive review is to enhance the quality of research by supplementing on the findings from the surveys, interviews, and administration of questionnaires.
Reflections
Obstacles and Challenges
Despite the essence of effective and efficient future of the banking industry in the implementation of the cloud computing systems and strategies, it is essential for the implementers to understand its obstacles or challenges within the market. This would enable the banking industry to plan appropriate ways in which to tackle the problems by offering accurate and valid solutions. One of the principal threats or challenges to this new strategy within the banking industry is the essence of security in relation to personal data belonging to an organization (Choubey et al, p. 1230). Security threats involves interference or tampering with confidential data within the cloud, loss of crucial privacy, and presence of unauthorized users in the vital system. This would affect the banking industry tremendously leading to minimum productivity levels. In order to curb this challenge, it is essential to adopt authenticating requirements to enhance the security system of the banks that adopt cloud computing in the improving their performance into the future.
The banking industry also faces the challenge of enhancing the behavior of the major stakeholders in relation to Information Technology (IT). Since it is critical for the industry to apply IT in making rational decisions under cloud computing strategy, it is necessary for organizations to execute effective and efficient training to their decision makers. Stakeholders need to understand on how to implement technology in providing accurate direction to the banking industry. This would entail providing extensive training on the software and elements of security in order to avoid threats and attacks into the data of organizations within the industry. Banking industry also faces challenges in relation to clarity of the strategy and its implementation in enhancing the performance within the market and industry. Over-use of the terminology ‘cloud computing’ tends to confuse stakeholders in the efforts to understand what it practically entails. It is, therefore, important for the industry to adopt precise description of the term in order to reduce confusion among the stakeholders. Other relevant challenges might include limitation to the financial literacy, negative image by the press, and lack of commitment from the policy makers and providers of the service within the industry (Kim-Kwang p. 4).
Ethics
Implementation of cloud computing strategy as the growing trend in the modern society associates with numerous ethical issues. These ethical issues must need extensive treatment by the banking industry with the aim of improving the performance levels within the industry in the modern and future worlds. The first ethical issue that associates with the cloud computing strategy is the effective management of information in the essence of cyber attacks or theft and crash of the systems. The organizations need to describe accurate manner to deal with the management of information in the case of security threats to address this ethical issue in relation to implementation of cloud computing technology or strategy. Another ethical issue arises from the inclusion of international and internal policies thus creating divides in relation to adoption and implementation of cloud computing. Other ethical issues that associate with cloud computing include privacy, anonymity, essence of government surveillance, liability, and reliability. These ethical issues determine the performance of cloud computing systems within the banking industry thus enabling organizations to improve on their production levels.
Influence of Politics on the Research
Politics would play a minimal role in the development and execution of this research in order to maintain objective aim in the implementation process. This would enable the study to understand adoption, implementation, and relevant challenges that might influence the development of cloud computing within the banking sector and industry. Maintenance of objectivity in the execution of the research would enable the study to develop accurate findings that would foster generalization process.
Conclusion
Cloud computing services form a crucial part of the banking industry because the way it affects on both clients and the banks themselves. However, the incorporation of the services has always presented some difficulties to most of the banks diverting the preference to the private entities. The challenges that the banks have always associated with the services mainly lie on the requirements of adoption, implementation and the nature of security. The developers of the services will need to modify these components in order to satisfy the need of their clients. The banks would need to determine the effect of cloud computing on their operations before adopting Cloud Computing services. Since it is a step towards increasing the operational efficiency of the banks, the latter would have to look for proper ways of keeping up with the challenges without paralyzing their production process.
Work cited
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