National Bank of Georgia and Microsoft Georgia held discussions on the topic of cloud computing and the supervision of outsourcing risk and announced their readiness for cooperation in the sphere of Cloud computing in the financial sector within the country.
The operational risk regulation of the National Bank of Georgia does not prohibit outsourcing for Georgian commercial banks, which also includes cloud computing, but the outsourcing of primary banking activities as well as the associated supporting information systems, needs the approval of the NBG.
Cloud computing is a major shift from the traditional way organizations think about IT resources. Key benefits are speed, acceptable costs, productivity and customized scalability. Today cloud technologies are secure and transparent like never before. Thus, they will help banks in Georgia to be up-to-date with the latest software and be aligned with EU practices.
“Clouds are fundamentally changing the world, impacting everything around us. We believe that eventually it will be the core for all future financial operations not only in Georgia, but all over the world, – Nikoloz Doborjginidze, General Manager at Microsoft Georgia, says”.
The National Bank is the regulator for all banks and financial institutions in Georgia. NGB issued its operational risk regulation that includes requirements for outsourcing, in 2014. As mentioned above, the regulation allows subcontracting, including partnerships in sphere of Cloud computing implementation. If a commercial bank decides to outsource their infrastructure to the cloud, they should request approval from NBG.