The Impact of Cloud Computing on Financial Data Security and Compliance in Financial Institutions

Abstract

Cloud computing has been a revolution in the financial sector, where it offers scalable, secure, and cost-effective solutions that can address the rising demands of data management and regulatory compliance. Despite its global implications, empirical research does not exist on the impact of cloud adoption on security, compliance, and business performance in financial institutions in developing economies. The research paper is going to analyze the effect of the adoption of cloud computing on the financial data security, regulatory compliance, and business performance in Pakistani financial institutions, where the Technology Acceptance Model (TAM) is used as a theoretical approach to the research. According to a quantitative research design, data on 205 IT professionals, managers, and employees in banks and financial institutions were collected by using structured questionnaires, which were customized by the use of validated scales. Measurement and structural models were assessed with the help of Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that the applicability of cloud computing has a positive impact on the security of financial information, the growth of regulatory compliance, and business performance. These findings suggest that, besides increasing operational efficacy, cloud technologies are also providing basic cybersecurity and compliance support that is valued for the consistency and trustworthiness of financial institutions. The study advances the theoretical understanding of TAM by extending its implications to the post-adoption outcomes in the security-sensitive conditions and gives meaningful implications to the practitioners and policy makers who may want to promote secure digital transformation. The greatest implications indicate the need to have cloud governance policies, safe investments in cloud infrastructure, and the improvement of regulatory frameworks to enable responsible use of technology. Longitudinal studies, cross-country studies, and the incorporation of mediating variables along with moderating ones, such as trust, perceived risk, and digital readiness, are the research recommendations of the future.

Keywords: Cloud Computing Adoption, Financial Data Security, Regulatory Compliance, Non-Bank Financial Institutions.