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?
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 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.
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
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!