Is Your Money Safe in the Cloud Today?

Today, everything is being done online to avoid contact with others during COVID-19. Banking is no different now than online shopping.

Ten years ago, transferring your savings to an online-only bank required a leap of faith. Today, banks with little or no physical presence are more commonplace, but it isn’t unusual for you to wonder how safe your money is in a non-traditional bank.

Is your money really safe in the cloud today?

money safe in the cloud

The answer to that lies less in whether the bank is traditional or next generation.  And now, more in how disciplined you are as a user and how disciplined your financial organization’s employees are.

Today, banks with little or no physical presence are more commonplace, but it isn't unusual for you to wonder how safe your money is in a non-traditional bank. #money #technology Click To Tweet

Next Generation Banking

Consumer demands on banking institutions are more than just consumers wanting online balance checking and bill payment. Consumers want more personalized products and services across multiple interaction channels.

This requires that banks bring products to the market more quickly. This has led to cloud core banking gaining traction and allowing new, technology-driven financial institutions to enter the market.

Traditional Banking

Traditional banking institutions are feeling the pressure from the more agile next-generation banks that can cater more personally to continually changing consumer demands.

These institutions must begin to consider moving away from traditionally stable, reliable, and highly secure infrastructures to the more agile and scalable cloud-based core banking.

banking today

Have you kids even walked into a bank? My sons are 29 and 31 and have never walked into a bank. They do all their banking online from their mobile devices.

My sons are 29 and 31 and have never walked into a bank. They do all their banking online from their mobile devices. #onlinebanking Click To Tweet

Security Comparison

With next-generation financial institutions operating on cloud cores and traditional institutions moving in that direction, how safe is your money in the cloud?

Traditional financial institutions benefited from custom infrastructures that were heavily penetration tested on a continual basis. The newer cloud-based infrastructures seek to provide that same iron-clad safety for its consumers’ personal and financial data. API-based functionality coupled with ever-increasing improvements in VPN encryption allows cloud core providers to reduce risk.

While cloud technology is improving, legacy cores of more traditional financial institutions are facing challenges. The challenges are due to the loss of talent necessary to maintain their heavily customized and poorly documented cores.

This combination of current conditions generally evens the playing field when it comes to technology-centric risk to consumer data.

While cloud technology is improving, legacy cores of more traditional financial institutions are facing challenges. #technology Click To Tweet

Security Threats to Your Money Safe in the Cloud

With infrastructure security being comparatively equal at present, the biggest risk to your personal data and financial information is human behavior. Hackers who can’t gain access to infrastructure through technology exploit human behavior.

For instance, they will send emails to you or employees at the financial institution that look legitimate but contain a malicious link or attachment. A malicious link may direct you to a site that looks exactly like your banking site.

However, it is instead a page that mimics your institution’s page. It can collect your login credentials for the hacker to use to gain access to your real account.

Likewise, a malicious attachment can surreptitiously install malware on an employee’s machine. This would allow the hacker access from within the institutions’ infrastructure.

For instance, they will send emails to you or employees at the financial institution that look legitimate but contain a malicious link or attachment. A malicious link may direct you to a site that looks exactly like your banking… Click To Tweet

Bottom Line with Your Money Safe in the Cloud

The bottom line is that the technology infrastructure is not the biggest risk to the safety of your personal and financial information at your bank, regardless of whether it is traditional or next generation.

To reduce your risk, make sure your financial institution has solid practices to control their employees’ behavior. Also, make sure you are personally well informed about malicious emails and don’t become a personal victim.

Also, make sure you are personally well informed about malicious emails and don't become a personal victim. #InspireToThrive Click To Tweet

Does Your Website Run in the Cloud?

Here at Inspire To Thrive, I’ve been using the Cloud package from Hostgator. It’s provided an uninterrupted service in the 2 years since I’ve made the switch! I’ve always had fantastic customer service from them over the years.

Why the cloud?

The major benefit cloud hosting offers over shared hosting is that it allows you to utilize the resources of multiple servers, rather than being limited to a single server.

With cloud hosting, you can monitor and allocate additional resources easily, allowing for unlimited expansion and growth.

I’d love to know more in the comments below about your cloud experiences!

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Lisa loves helping others to thrive online through Social Media, Blogging, and SEO. What good is knowledge if you cannot share it with others? She has 30+ years of experience in marketing/advertising with 9 years of experience in content marketing, social media, blogging, and SEO. Check out her latest eBook "How to Tweet and Thrive on Twitter" now on Amazon.

  • Hey Lisa,

    Rijhu this side.

    This is really something that needs more concern. I really appreciate and like the way you put your blogs and help out your readers. Yes very well mentioned and I completely agree being disciplined as a user and how disciplined your financial organisations employees are matters a lot when it comes to safety and security.

    Nowadays many of us are preferring mobile banking or internet banking and to reduce risk it is very important to be well informed about malicious emails and links as they look a like very similar to banking sites. Thanks Lisa and keep writing.

    Regards,

    • Thank you Rijhu, You are most welcome. Banking online and in the cloud is safer today as long as you follow safety practices like locking your mobile device and keeping passwords safe!

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