More and more brokers are opting to use cloud computing, but concerns over security and data sovereignty are stopping many from embracing the technology.
Brokers are increasingly opting to use cloud computing solutions, but concerns over security and data sovereignty are stopping many from embracing the technology.
Cloud computing allows data to be stored and processed via an external server, meaning that it can be accessed by employees from anywhere in the world with an internet connection.
That means greater mobility for brokers on the move, but can also create complications in terms of data privacy law. Generally the laws of the country that the data resides in, and not where the company is based, control the security of the data.
This is particularly concerning for many in the finance industry, where firms often hold large amounts of confidential customer data.
Phillip Dibben of Borne Financial Group prefers to be cautious when it comes to protecting potentially sensitive information.
“My concern is having client data stored outside of the controls of the Australian government,” said Dibben. “I’d have to have a lot more information before I go down that path.”
If it could be guaranteed that information would remain under the jurisdiction of Australian laws, said Dibben, it could be something he would look at – but not until it has been thoroughly trialled and tested in Australia.
“A huge part of my business is traveling to see clients, so the ability to work off-site on a secure basis would be brilliant. But I want the technology to be proven first. I’d rather let someone else make the mistakes and if it works out then I’ll take it on.”
Rocky Scopelliti, Telstra’s general manager of industry development, said Dibben’s concerns are common amongst business owners that are deciding on whether cloud is right for their business.
These concerns are exactly why, said Scopelliti, Telstra has ensured it has the ability to provide a cloud network with servers residing solely in Australia.
“Telstra has those capabilities in terms of data servers, so those data sovereignty issues then go away,” he said.
The security standards for cloud computing, said Scopelliti, are no less than traditional data storage methods.
“We are well accustomed, from a historical perspective, to meeting and exceeding the security requirements of financial institutions in Australia. The question becomes, in a cloud model, can we deliver security to the same standards as we we’ve done for the industry in the past - and the answer is ‘Absolutely yes’.”
Glenn Lees, director of aggregator Connective, said the decision to switch to cloud computing was the right one for his business.
Brokers have raised concerns about data security with him in the past, said Lees, but ultimately their fears have always been allayed once the processes were explained.
“A broker may say ‘I’m concerned about data security if I give it to you’, without really considering what information security process they have in place.
“The reality is, you are often moving to a higher security environment by doing this, simply because of the scale of resources we have available.”
When questioned, Lees said, most brokers admitted to frequently taking their laptop with them on business trips, and usually that laptop was last backed up over a year ago, if at all.
“Then you would explain our back-up procedures and just how rigorous, detailed and failsafe they are, that we always constantly check and restore and do all of the things that they should do but can’t.
“They get to outsource all of those really difficult compliance tasks to us, and provided they entrust us to do that they’re much better off.”
The decision to switch to cloud computing, said Lees, worked for Connective, but ultimately it comes down to the needs of the individual business.
“In the end we just made the decision that if you’re not connected then you’re probably not a Connective broker. It was more of a reflection of what we were advocating and what our ideal broker was like, someone who was tech-savvy, who was forward looking.
“Ultimately we thought ‘You’re either with us or you’re not’, and it’s been a good call.”
