The former head of the Chinese securities regulator has called for the creation of a cloud computing system that encompasses all data in the financial system.
Xiao Gang (肖钢), former head of the China Securities Regulatory Commission (CSRC), called for greater pooling of financial data and integration with application scenarios, given that the “financial system is a whole.”
“I propose that regulators take the lead in establishing a specialised cloud for the financial system, encompassing the data of all banking, securities and insurance institutions,” said Xiao at the China finance 40 Forum on 13 August.
“This will be of benefit to protecting the security of data, and will also resolve the problem of data segregation created by each financial institution establishing their own private clouds.
“It will also be of benefit to strengthening regulation of the financial system in future”
Xiao points out that at present there are two types of institutions in the process of developing financial clouds – the domestic tech giants, as well as traditional large-scale financial institutions, yet the functions of the clouds they develop are disparate.
“The financial clouds built by tech giants can provide services to all financial institutions, and are public clouds,” said Xiao.
“The financial clouds build by large-scale financial systems themselves are exclusive or private clouds, and only for their own usage. Our survey shave found that while the data protections of public clouds can satisfy technical requirements, these public clouds are still not appropriate for financial data, as public clouds are not exclusively for serving financial institutions.”