The Bank of England is at risk of moving too slowly, say experts who say it needs to get a grip on financial sector plans to outsource customer data retention to a handful of unregulated US tech giants.
Last week, the central bank again raised concerns about the use of cloud services that store data on another company’s remote servers. The fact that the services are dominated by only a few companies such as Google, Amazon and Microsoft poses a potential threat to financial stability.
“Cloud service providers are increasingly becoming an integral part of the financial system’s infrastructure,” said the bank’s governor Andrew Bailey. “And there are many good reasons for this: It is a model that works.”
But the fact that a growing list of financial firms rely on just three tech companies to provide their day-to-day services has increased the risk that multiple banks could be hit by cybersecurity risks, hacking, and failures that all on a single …