Seidman says GDPR assures clients that the company is doing things not only in a regulatory correct way but also in a morally correct way. Having to meet GDPR’s capabilities cannot be physically transferred outside of the borders, which brings the cloud back down to earth.
“You have to respect the borders of a country like Switzerland, for example. Often data that you want to store on Swiss clients has to reside on Swiss servers, so it’s an extra layer of complexity from the data management perspective.”
It’s worth noting that in addition to GDPR, there’s a handful of regulations around data residency in specific countries across Europe. Because of this, making an infrastructure able to adhere to all such regulations is crucial if one wants to expand business.
The Bottom Line
The most important thing that advisors have to worry about is the delta -- whatever they build on top of cloud infrastructure. Given that new threats are evolving and new regulations are arising in response, one won’t be able to avoid incorporating these concerns and protections into wealth management products and solutions. The world of finance meanwhile has enough options to focus on. Companies can use the cloud infrastructure built to meet their specific needs. This eliminates effort waste, enhances security that one cannot provide in-house, and increases the speed of launching to the global market.
Vasyl Soloshchuk is CEO and co-owner at INSART, a fintech and Java engineering company. Vasyl is also the author of WealthTech Club, which conducts research into Fortune 500 and start-up robo-advisor and wealth management companies.