The Central Bank plans to pile pressure on financial institutions to get to grips with mounting cybersecurity, Brexit and other risks related to their outsourcing arrangements, as it found in a survey that many boards have little understanding how others manage these crucial functions.
Some 185 banks, asset-management groups, insurers and payment companies surveyed by the regulator have 7,700 outsourcing arrangements between them. Forty per cent of the companies planned to outsource more activities over the next 12 to 18 months, the Central Bank said.
About 40 per cent of the firms used third parties to provide 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.
…
