Singapore banks haven’t embraced the cloud. The government’s trying to help.

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Banks in Singapore have been slower in adopting the cloud because of security concerns and regulations. The Monetary Authority of Singapore (MAS) hopes to tackle that by issuing new guidelines for the use of cloud services by financial institutions.

The guidelines could show banks how they can embrace the cloud without compromising security and customer trust.

According to Out-Law.com, Lim Hng Kiang, the minister for trade and industry, said that the new guidelines will place “greater emphasis on safeguarding customer information.”

Cloud computing is an essential piece of the puzzle to Singapore’s Smart Nation ambitions.

The upcoming amendments mean that MAS is aware of the benefits of those services for financial institutions. “Cloud services can offer various benefits such as scalability and advanced functionalities,” said the minister.

Importantly, MAS will make banks responsible for risk management, security, and establishing the right outsourcing partners. While banks will be responsible for the outsourcing agreements they make, they won’t need to notify MAS in advance.

The minister stressed that the amended guidelines are not meant to cover all scenarios. He also emphasized the need for financial institutions to strengthen cyber security to maintain trust with customers. MAS will work with the Association of Banks in Singapore (ABS) and its Standing Committee on Cyber Security on this.

Cloud computing is an essential piece of the puzzle to Singapore’s Smart Nation ambitions. The Infocomm Development Authority has already issued its own set of guidelines covering cloud service outages.