IBM partners with Bank of America to build specific financial cloud
Major bank will be the first user of the platform
US tech giant IBM has partnered with Bank of America to develop and test its first industry-specific cloud for financial services, the company says.
IBM wants to roll out a financial cloud that believes will meet the industry's high standards for regulatory compliance, security and resilience. The new product is designed to provide controls for financial services workloads, while protecting their security.
The company’s release says that Bank of America will be the first contributor to trial the new clou among its 66 million customers.
According to Reuters, Bank of America has previously used its own internal cloud computing capabilities. In recent years the institution has reduced the number of its servers from 200,000 to 70,000. This leaves it with only 23 data centres compared with a previous 67.
However, the bank still uses cloud services offered by third parties. According to Chief Executive Brian Moynihan cited by Reuters, this service is up to 30 per cent cheaper.
However, the use of third-party services has caused problems for financial institutions. Earlier in 2019, a hacker gained access to more than 100 million Capital One customers' accounts and credit card applications. Prior to the breach the suspect had worked as a software engineer for Amazon Web Services, the cloud hosting company used by Capital One.
The hack forced U.S. lawmakers to consider direct oversight of cloud services, such as Amazon Web Services, Microsoft Corp’s Microsoft Azure and Alphabet Inc’s Google Cloud, used by financial institutions. Late last month, senators Elizabeth Warren and Ron Wyden wrote to the Federal Trade Commission asking it to investigate Amazon’s failure to secure the servers.
Tokenised securities are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how tokenised securities and leverage work and whether you can afford to take the high risk of losing your money. Nothing in the above article should be regarded as a recommendation to trade generally, to trade on a particular platform or to trade in a particular asset. Asset prices can go down as well as up and past performance is not a guide to future performance. Investors and traders should thoroughly research an asset or strategy before making any trading or investment decision and if necessary seek professional advice.