Washington, D.C. – Bank Policy Institute responded today to a new report published by the U.S. Department of Treasury on the state of cloud adoption across the financial sector. The report examines benefits and potential challenges as the industry continues to adopt cloud services and recommends opportunities for government, regulators and the private sector to work together to realize the benefits of cloud adoption.
What BPI is saying:
Heather Hogsett, BPI senior vice president, technology and risk strategy, stated:
BPI strongly supports Treasury’s recommendations and comprehensive review of cloud adoption and believes that these collaborative efforts will address key challenges and lead to a safer financial system. Cloud adoption can provide flexibility and efficiency that support innovative products and services while enhancing security and resilience. We look forward to continuing to partner with Treasury to unlock these benefits.
Here’s what’s in the report:
The recommendations follow consultations with financial institutions of varying sizes, think tanks, insurance companies, financial market utilities, cloud service providers and other critical stakeholders. The report identified the benefits of cloud services and six possible inhibitors that could prevent those benefits from being realized. These challenges aren’t unique to the financial services industry and are shared by regulators and government agencies across nearly every industry. As cloud usage across the public and private sectors continues to expand, a new approach is needed to ensure regulators adopt these recommendations and collaborate to develop consistent and modern approaches to technology regulation and oversight.
Here’s what’s next:
Treasury outlines a series of principles, priorities and objectives as part of its recommendations, including the creation of a cloud steering group and a commitment to international engagement with global regulators.
What are the next steps?
The CFPB will review comments and will convene a panel under the Small Business Regulatory Enforcement Act in early February. Feedback received during this process will result in the CFPB issuing a report. The CFPB will then initiate the formal rulemaking process through a notice of proposed rulemaking.
To access a copy of the report, please click here.
About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.