The pandemic has led financial institutions to get serious about public cloud use. In addition to digital transformation on the business side, firms are also pushing cloud-based initiatives forward in risk management and compliance. Cloud computing’s ability to support advanced big data, analytic and model development techniques has increased the attractiveness of the cloud for risk applications. In addition, regtech is giving the public cloud a boost in risk management and compliance through an emerging ecosystem of hundreds of new, native cloud offerings delivering advanced capabilities, often at significantly lower cost than on-premise solutions.

The cloud provider, the type of cloud, and the service model will vary for different applications or functions that an institution deploys on the cloud. As a result, many firms choose, effectively, multi-cloud deployment strategies. They will need to manage these ecosystems effectively and securely, including overlaying additional applications to ensure security and fill gaps across multiple clouds.