The Central Bank plans to pile pressure on financial firms to get a handle on mounting cyber-security, Brexit and other risks related to their outsourcing arrangements, as it found in a survey that many boards have little understanding how other firms manage their crucial functions.
Some 185 banks, asset management firms, insurers and payment companies surveyed by the regulator have 7,700 outsourcing arrangements between them. Forty per cent of the firms planned to outsource more activities over the next 12 to 18 months, the Central Bank said.
Services
About 40 per cent of the firms used third parties to provide so-cloud cloud computing services such as servers, storage, databases and networking over the internet, while a growing number of banks are entering partnerships with unregulated financial technology (fintech) companies, according to the Central Bank.
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