Chronicle Editor
Sikhulekelani Moyo, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has noted with caution the growing interest towards cloud computing by the banking sector but has urged those keen on that path to take proactive steps to avert associated risks.
Cloud banking refers to deployment and use of a service delivery system that allows banks and financial institutions to manage core banking systems and applications in the cloud or online.
Information Communication and Technology (ICT) experts believe cloud technology is more convenient for customers even if it is not easily accessible to many people for now as this requires efficient gadgets, good connectivity and relevant knowledge.
In his 2022 Monetary Policy Statement RBZ Governor, Dr John Mangudya, stated that the central bank was supportive of the initiative as banks seek to benefit from technological advancements as a means of fulfilling their business and operational requirements. He, however, warned of associated risks.
“In this regard, banking institutions planning to adopt cloud services are required to: a) take proactive active steps and consider the new risk universe associated with data access, confidentiality, integrity, sovereignty, recoverability, auditing, legal and regulatory compliance,” said Dr Mangudya.
This will require banking institutions to ensure that independent audits and/or expert assessments of cloud service outsourcing arrangements are conducted by qualified auditors, as part of due diligence reviews, he added.
Commenting, ICT expert and chief executive officer of Hansole Investments, Engineer Jacob Mutisi, said cloud technology could reshape digital banking services in a big way and make banking simpler and more convenient. “However, for many banks, the business processes and technology that support it are far from simple,” he said.
“Lack of internet countrywide, poor connectivity, gadgets that can connect to the cloud are expensive, rural populations have no access and lack of knowledge are some of the challenges, which can be encountered on cloud banking.”
Eng Mutisi, also noted that on the technology front, digital banking already represents an increasingly complex set of connected systems that need to work together across disparate platforms.
In support of the RBZ, he said the issue of confidentiality and risk management would require banks to ensure safety by investing in systems that protect bankers from cyber-attacks.
Another ICT expert, Mr Robert Ndlovu, said given that cloud banking was purely virtual, banks will need adequate capacity to procure quality servers to secure data houses with power backup.
– @SikhulekelaniM1.
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