In today’s digital era, trust is fundamental to the relationship between wealth management firms and their clients. With increasing concerns over data breaches and privacy, the significance of trust is more critical than ever. Cloud technology, revolutionising the IT and business sectors by democratising access to advanced services, is central to the trust dynamic. The adoption of these technologies, however, is reliant on customers’ confidence in the security and safety of their data and finances.
Understanding the business models and, consequently, the motivations of leading Cloud service providers helps to build trust. Indeed, providers have to demonstrate an unwavering commitment to security, making it their utmost priority. Their philosophy reflects this principle: ‘security is job zero’. The AWS Cloud, for example, is built to satisfy the security requirements of global banks, the military, and other high-sensitivity organisations. Regardless of size, all customers benefit from the same robust security features. For instance, Nasdaq has migrated mission-critical workloads, such as the US options market and core trading systems, to AWS technology, showcasing trust in its capabilities.
Wealth management firms must be aware of common pitfalls when adopting technology. These include underestimating Cloud environments’ inherent security capabilities, overvaluing the flexibility of implementation approaches, and overlooking the necessary time and expertise to establish and maintain a secure environment. Cloud providers bolster cyber resilience and facilitate a rapid go-to-market strategy for customers with new services, fostering innovation and competitiveness.
At AWS, we adhere to the principle that 90% of what we build is driven by what customers explicitly tell us matters, while the remaining 10% comes from interpreting their feedback and inventing on their behalf. This approach made us focus on verifiable control over data access and comprehensive data encryption. Moreover, our range of data protection features, backed by third-party accreditations and contractual commitments, makes sure customers are in control and able to meet regulatory requirements.
In response to customer concerns for data privacy, we also developed the AWS Nitro System for our computing services (Virtual Machines), which eliminates any possibility of AWS personnel accessing customer data. Additionally, customers have the option to store encryption keys externally, which helps them to demonstrate compliance with specific regulations. These measures aim to mitigate concerns about unauthorised access and data leaks, as well as government-enforced data access, ensuring secure and reliable services tailored to customer needs.
In summary, customer trust is crucial in the evolving wealth management industry. Adopting Cloud technology enhances this trust by ensuring robust security, protecting privacy, and enabling innovation through advanced technologies like Generative Artificial Intelligence (AI). This approach is vital for success in today’s digital financial world.
Interested in reading the full report? You can read this edition of the Swiss WealthTech Landscape Report 2024 online here.
