Compared to any other sector, the accelerated pace of cloud migration in the BFSI sector is a landmark achievement. From the initial resistance by leaders owing to the security risks, they have arrived at a point where studies show that banks will spend a quarter of their annual IT budgets on the cloud alone by 2024. This is a testament to the efficiency, agility, and security that the cloud offers.
For years, Amazon Web Services (AWS) has dominated the cloud industry in terms of market share. In terms of clientele, AWS boasts an impressive list ranging from JP Morgan, HSBC, Axis Bank, and many more, and has a presence in every continent. As recently as in February of 2023, Australian banking major Westpac signed a 5-year deal with AWS to up their cloud game.
AWS has become a key player in the BFSI cloud space, but this hasn’t been an easy journey. Even today, there are apprehensions about moving sensitive core systems into the cloud owing to security fears. In fact, studies show that financial firms experience 300 times more cyber-attacks than businesses in other industries. But over the years, cloud providers like AWS have embraced enough security credentials to help power some of the world’s largest banking networks and infrastructure.
What it takes for BFSI businesses to make major strides with their AWS initiatives is to follow the best practices in security to make lives easier for all stakeholders. Let us explore the top AWS security best practices for BFSI organizations that can help them achieve a risk-free cloud experience while enjoying the best of benefits:
Know What AWS’s Security Capabilities and Responsibilities Are
AWS became popular in the banking sector not just because of its sheer size but also due to the fact that Amazon invests considerably in developing native security features and capabilities for the platform.
From the Amazon Web Application Firewall (WAF) and Amazon Security Groups (ASG) to AWS Compliance Center and the AWS Cloud Governance framework, there are tons of internal offerings that help BFSI customers define security measures on their cloud environments built on AWS.
It is crucial to have a clear understanding of the level of protection and proactive security that your banking systems can get as standard from Amazon.
Make Use of AWS Cloud Governance
It is imperative that financial businesses leverage the AWS Cloud Governance framework to establish processes, privileges, and operational models that will be permitted within the AWS environment. It is the first step in creating a secure cloud ecosystem with all foundational security pillars in place.
The AWS Cloud Governance framework empowers a BFSI business to have control and visibility into every cloud instance and establish guidelines for the use of resources, access privileges, and cost of scale. The framework will make it easier to incorporate local or regional law and compliance requirements to the fundamental levels – enabling more authenticity.
Leverage the Security Tools
Once you have a clear idea of the BFSI-focused capabilities of AWS, it is time to explore some of the major tools that AWS has developed to manage security. One prime example is the Amazon Security Groups (ASG), a virtual firewall that ensures every EC2 instance is proactively monitored for security assurance.
BFSI clients can use ASG to set rules for every traffic inflow and outflow from the systems under the framework.
Automate Monitoring with AWS Security Hub
With the AWS Security Hub, it is possible to establish an umbrella monitoring and security management initiative within any AWS environment. By automatically collecting data related to risks or attacks, analysis, and security testing, the AWS Security Hub will quickly identify potential hazards.
The risks could be due to either external threats or internal non-compliance with security measures or local mandates. Either way, the AWS Security Hub offers a controlled environment to manage the security of the larger digital infra that a bank or financial firm has embraced to propel their digital ambitions forward.
Minimize the Use of S3 Bucket Permissions
The S3 storage service of AWS is a darling of financial enterprises. It offers them a chance to bring a large volume of transactional data into a single harmonized view. But while crunching the numbers from across the operational landscape, S3 buckets have also been under severe security risks.
However, by growing more awareness among developers about features of S3 like Block Public Access, combined with new standards of encryption and governance, it will become easier to use S3 with minimal permissions.
Adhere to Regulations with AWS Compliance Center
Focus on achieving compliance with all regional and local mandates. By using the AWS compliance Center, BFSI businesses can ensure strict adherence to regulatory requirements. The Compliance Center facilitates the exploration of regulatory environments (of more than 50 countries). It equips businesses to better comprehend how they can go about meeting global regulatory requirements by browsing country-specific resources.
Get Ahead with AWS
AWS has grown in complexity and scale and is today one of the most pioneering BFSI cloud options available. However, handling its security is a totally different game and one that needs expert guidance. This is where the right technology partner like enreap can help migrate to AWS seamlessly while ensuring compliance.
Get in touch with us to know more.
