IDEAS home Printed from https://ideas.repec.org/a/cbk/journl/v11y2022i2p123-143.html
   My bibliography  Save this article

Adoption of Cloud Services in Central Banks: Hindering Factors and the Recommendations for Way Forward

Author

Listed:
  • Darell Edmond

    (University of Liverpool, Liverpool, United Kingdom)

  • Vijay Prakash

    (Thapar Institute of Engineering and Technology, Patiala, Punjab, India)

  • Lalit Garg

    (University of Liverpool, Liverpool, United Kingdom and University of Malta, Msida, Malta)

  • Seema Bawa

    (Thapar Institute of Engineering and Technology, Patiala, Punjab, India)

Abstract

Current research on cloud computing often focuses on the technology itself and the benefits that one company can use and choose from cloud services. Most of the research has focused on mainstream enterprises and limited regard to Central Banks' (CBs') Cloud Computing Adoption (CCA). CBs are continually exploring opportunities to enhance IT efficacy while minimizing expenditures and ensuring data protection and network security. This paper investigates the factors affecting the CBs' CCA by surveying 40 CBs representing approximately 25% of total CBs worldwide. The main participants were senior IT managers who are responsible for any IT decisions in CBs. The findings are also significant for other organizations or businesses where data privacy is crucial. The study results indicate that CBs are still reluctant to migrate to the public cloud. Influential factors preventing CCA are data protection, privacy, and risks.

Suggested Citation

  • Darell Edmond & Vijay Prakash & Lalit Garg & Seema Bawa, 2022. "Adoption of Cloud Services in Central Banks: Hindering Factors and the Recommendations for Way Forward," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(2), pages 123-143.
    • Handle: RePEc:cbk:journl:v:11:y:2022:i:2:p:123-143
    as

    Download full text from publisher

    File URL: http://www.cbcg.me/repec/cbk/journl/vol11no2-6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scott, Susan V. & Van Reenen, John & Zachariadis, Markos, 2017. "The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services," Research Policy, Elsevier, vol. 46(5), pages 984-1004.
    2. Shahla Asadi & Mehrbakhsh Nilashi & Abd Razak Che Husin & Elaheh Yadegaridehkordi, 2017. "Customers perspectives on adoption of cloud computing in banking sector," Information Technology and Management, Springer, vol. 18(4), pages 305-330, December.
    3. Jonne O. Lehtimäki & Marianne Palmu, 2019. "Central Bank Communication and Monetary Policy Predictability under Uncertain Economic Conditions," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 8(2), pages 5-32.
    4. Bernardo Nicoletti, 2013. "Cloud Computing in Financial Services," Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan, number 978-1-137-27364-2, December.
    5. Bijoy Rakshit & Samaresh Bardhan, 2020. "Does Bank Competition Enhance or Hinder Financial Stability? Evidence from Indian Banking," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 75-102.
    6. Ramzi El-Haddadeh, 2020. "Digital Innovation Dynamics Influence on Organisational Adoption: The Case of Cloud Computing Services," Information Systems Frontiers, Springer, vol. 22(4), pages 985-999, August.
    7. Payam Hanafizadeh & Ahad Zare Ravasan, 2018. "A model for selecting IT outsourcing strategy: the case of e-banking channels," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 21(2), pages 111-138, April.
    8. Ioannis Nanos & Vicky Manthou & Efthimia Androutsou, 2019. "Cloud Computing Adoption Decision in E-government," Springer Proceedings in Business and Economics, in: Angelo Sifaleras & Konstantinos Petridis (ed.), Operational Research in the Digital Era – ICT Challenges, pages 125-145, Springer.
    9. Rana, Nripendra P. & Barnard, Daniel J. & Baabdullah, Abdullah M.A. & Rees, Daniel & Roderick, Sian, 2019. "Exploring barriers of m-commerce adoption in SMEs in the UK: Developing a framework using ISM," International Journal of Information Management, Elsevier, vol. 44(C), pages 141-153.
    10. Seok-Keun Yoo & Bo-Young Kim, 2018. "A Decision-Making Model for Adopting a Cloud Computing System," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    11. Guillaume Vallet, 2021. "Great Power, Great Responsibility: Addressing the Underestimated Issue of Central Bank’s Social Responsibility," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 10(3), pages 23-39.
    12. Guillaume Vallet, 2021. "Great Power, Great Responsibility: Addressing the Underestimated Issue of Central Bank’s Social Responsibility," Post-Print halshs-03355045, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Osama Abied & Othman Ibrahim & Siti Nuur-Ila Mat Kamal & Ibrahim M. Alfadli & Weam M. Binjumah & Norafida Ithnin & Maged Nasser, 2022. "Probing Determinants Affecting Intention to Adopt Cloud Technology in E-Government Systems," Sustainability, MDPI, vol. 14(23), pages 1-29, November.
    2. Jonne Lehtimäki & Marianne Palmu, 2022. "Who Should You Listen to in a Crisis? Differences in Communication of Central Bank Policymakers," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(3), pages 33-57.
    3. Serhat Yuksel & Hasan Dincer & Senol Emir, 2017. "Comparing the performance of Turkish deposit banks by using DEMATEL, Grey Relational Analysis (GRA) and MOORA approaches," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 3(2), pages 26-47, December.
    4. Ashish Kumar Jha & Indranil Bose, 2021. "Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships," Information Systems Frontiers, Springer, vol. 23(6), pages 1593-1607, December.
    5. Kian-Guan Lim & Michelle Lim, 2020. "Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-25, December.
    6. John Oredo & Denis Dennehy, 2023. "Exploring the Role of Organizational Mindfulness on Cloud Computing and Firm Performance: The Case of Kenyan Organizations," Information Systems Frontiers, Springer, vol. 25(5), pages 2029-2050, October.
    7. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    8. Qian Wang & Jinbao Yang & Yung‐ho Chiu & Tai‐Yu Lin, 2020. "The impact of digital finance on financial efficiency," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1225-1236, October.
    9. Mohammad Ashraful Ferdous Chowdhury & Mohammad Abdullah & Nurun Nowshin Chowdhury Nazia & Debarshi Roy, 2023. "The nonlinear and threshold effects of IT investment on the banking sector of Bangladesh," Economic Change and Restructuring, Springer, vol. 56(6), pages 4253-4283, December.
    10. Abdol Majid Saadat Nezhad & Tahmoures Sohrabi & Nasrollah Shadnoosh & Abbas Toloie Eshlaghy, 2017. "A New Approach to Challenges of Venture Capital in Financing the Industrial Clusters through Cooperative Models and Venture Funds in Iran," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 111-119.
    11. Han Lai & Huchang Liao & Jonas Šaparauskas & Audrius Banaitis & Fernando A. F. Ferreira & Abdullah Al-Barakati, 2020. "Sustainable Cloud Service Provider Development by a Z-Number-Based DNMA Method with Gini-Coefficient-Based Weight Determination," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    12. Francisco Jesús Gálvez-Sánchez & Juan Lara-Rubio & Antonio José Verdú-Jóver & Víctor Meseguer-Sánchez, 2021. "Research Advances on Financial Inclusion: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    13. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.
    14. Cheng, Cong & Wang, Limin, 2022. "How companies configure digital innovation attributes for business model innovation? A configurational view," Technovation, Elsevier, vol. 112(C).
    15. Hongyan Zhao & Wanteng Zheng & Irina Loutfoullina, 2022. "Digital Finance and Collaborative Innovation: Case Study of the Yangtze River Delta, China," Sustainability, MDPI, vol. 14(17), pages 1-15, August.
    16. Shampa Paul & Kaushalesh Lal, 2021. "Technology Intensity and Employment in the Indian Economy," Arthaniti: Journal of Economic Theory and Practice, , vol. 20(1), pages 34-52, June.
    17. Swapnilsingh Thakur & Shailesh Rastogi & Neha Parashar & Pracheta Tejasmayee & Jyoti Mehndiratta Kappal, 2023. "The Impact of ICT on the Profitability of Indian Banks: The Moderating Role of NPA," JRFM, MDPI, vol. 16(4), pages 1-16, March.
    18. Asadi, Shahla & Nilashi, Mehrbakhsh & Iranmanesh, Mohammad & Hyun, Sunghyup Sean & Rezvani, Azadeh, 2022. "Effect of internet of things on manufacturing performance: A hybrid multi-criteria decision-making and neuro-fuzzy approach," Technovation, Elsevier, vol. 118(C).
    19. Maik Dehnert, 2020. "Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1071-1113, November.
    20. Jianhao Lin & Jiacheng Fan & Yifan Zhang & Liangyuan Chen, 2023. "Real‐time macroeconomic projection using narrative central bank communication," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(2), pages 202-221, March.

    More about this item

    Keywords

    Central Banks; Cloud Computing Adoption; Cloud Services; Hindering factors.;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • Y20 - Miscellaneous Categories - - Introductions and Prefaces - - - Introductions and Prefaces

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbk:journl:v:11:y:2022:i:2:p:123-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cbmgvme.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.