• In April 2019 , Scotiabank’s platform VP shared Google's cloud,native approach for protecting personally identifiable information (PII) in Google Cloud Platform (GCP). The session will cover their considerations around access and bank application reidentification.

• In October 2023, Palo Alto Networks, Inc. entered into an agreement to acquire Dig Security, a provider of Data Security Posture Management (DSPM). Palo Alto Networks aims to enhance security measures and protect against external and internal threats through this collaboration. Moreover, the firms’ combined aim is to monitor, classify, and identify sensitive data across all cloud data stores and control multi,cloud data.

In this report, the Cloud Security in Banking Market has been segmented by Software Type, Enterprise Size, Component, Deployment Mode, and Geography.

Cloud Security in Banking Market, Segmentation by Software Type

The Cloud Security in Banking Market has been segmented by Software Type into Cloud Identity & Access Management Software, Cloud Email Security Software, Cloud Intrusion Detection & Prevention System, and Cloud Encryption Software.

Cloud Identity & Access Management Software
Cloud Identity & Access Management (IAM) Software plays a vital role in securing digital banking by managing user access to systems and data. As cyber threats grow, over 65% of financial institutions now rely on cloud IAM solutions to streamline authentication processes and enforce strict access controls. These platforms support multi-factor authentication and role-based permissions, ensuring only authorized personnel access sensitive banking data. The growing demand for regulatory compliance and operational efficiency continues to fuel adoption.

Cloud Email Security Software
Banks are prime targets for phishing attacks and email-based threats, making Cloud Email Security Software a critical defense layer. With over 70% of cyberattacks originating from email, financial institutions increasingly turn to cloud-based email protection. These systems provide real-time threat detection, encryption, and malware filtering, safeguarding sensitive client communications and internal correspondence. Enhanced visibility and AI-driven analysis make it an essential part of any bank’s cybersecurity framework.

Cloud Intrusion Detection & Prevention System
Cloud Intrusion Detection & Prevention Systems (IDPS) help banks detect and neutralize threats before they infiltrate core systems. As financial data breaches become more sophisticated, over 60% of banks now deploy cloud-based IDPS solutions. These systems continuously monitor traffic patterns, identify anomalies, and take automated action to block malicious intrusions. Their scalability and real-time analytics are crucial for protecting cloud infrastructure in modern banking.

Cloud Encryption Software
Cloud Encryption Software ensures that sensitive banking data remains secure both at rest and in transit. With data privacy regulations tightening, more than 75% of banking organizations have adopted cloud encryption tools to meet compliance and protect customer trust. These solutions use advanced encryption standards (AES) and key management protocols, making unauthorized access nearly impossible. Encryption software remains fundamental for securing financial records and personal client information in cloud environments.

Cloud Security in Banking Market, Segmentation by Enterprise Size

The Cloud Security in Banking Market has been segmented by Enterprise Size into Small & Medium Enterprise and Large Enterprise.

Small & Medium Enterprise
Small & Medium Enterprises (SMEs) in the banking sector are increasingly adopting cloud security solutions to counter growing cyber risks with limited in-house IT capabilities. Approximately 58% of SMEs now leverage cloud-based security platforms for cost-effective threat mitigation and compliance. These solutions offer simplified deployment, scalability, and remote access management—critical features for resource-constrained operations. As SMEs embrace digital banking services, demand for robust yet affordable cloud security is accelerating.

Large Enterprise
Large banking enterprises face complex cybersecurity challenges due to vast customer data, multiple access points, and stringent compliance mandates. Over 80% of large financial institutions have adopted advanced cloud security architectures to ensure data protection, fraud prevention, and seamless digital operations. These enterprises prioritize real-time monitoring, automated threat detection, and policy enforcement across hybrid environments. Their heavy investment in cloud infrastructure is driving innovation in security measures tailored for high-scale operations.

Cloud Security in Banking Market, Segmentation by Component

The Cloud Security in Banking Market has been segmented by Component into Solutions and Services.

Solutions
Cloud security solutions form the foundation of banking cybersecurity by offering comprehensive tools for threat prevention, data protection, and regulatory compliance. These include firewalls, encryption platforms, identity management systems, and more. Over 72% of banking institutions now deploy integrated cloud security solutions to safeguard critical operations. Their scalability, automation, and advanced threat intelligence capabilities make them a top priority in modern banking environments.

Services
Cloud security services complement solutions by providing banks with specialized support, including consulting, managed security services, and incident response. As banking institutions face a shortage of cybersecurity talent, more than 68% are outsourcing parts of their cloud security to expert service providers. These services ensure continuous monitoring, threat remediation, and compliance auditing—helping institutions stay protected while focusing on core financial operations.

Cloud Security in Banking Market, Segmentation by Deployment Mode

The Cloud Security in Banking Market has been segmented by Deployment Mode into Public Cloud, Private Cloud, and Hybrid Cloud.

Public Cloud
The public cloud model offers banks cost-effective scalability and faster deployment of cloud security frameworks. Ideal for hosting less-sensitive workloads, it is now used by over 62% of banking institutions for select operations like mobile banking and customer service portals. Public cloud providers deliver security patches and updates automatically, but shared environments raise concerns over data control. Still, the model’s affordability and accessibility make it highly attractive to mid-sized banks.

Private Cloud
A private cloud provides banks with dedicated infrastructure, ensuring enhanced control, data sovereignty, and compliance alignment. Approximately 55% of financial institutions prefer private clouds for handling highly sensitive data such as transaction records and customer identity information. The deployment allows for customized security protocols and better integration with legacy systems, though it comes with higher setup and maintenance costs. Security-conscious banks often choose this model to meet stringent regulatory demands.

Hybrid Cloud
The hybrid cloud model combines the strengths of both public and private deployments, giving banks flexibility and control over where and how data is stored and processed. Around 70% of large financial institutions now rely on hybrid cloud setups to support digital transformation while maintaining security for critical workloads. It enables dynamic data migration, load balancing, and policy-based access control, making it ideal for complex banking environments aiming for agility without compromising security.

Cloud Security in Banking Market, Segmentation by Geography

In this report, the Cloud Security in Banking Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Cloud Security in Banking Market Share (%), by Geographical Region

North America
North America dominates the cloud security in banking market, driven by early cloud adoption, a mature financial ecosystem, and strict regulatory mandates like GLBA and SOX. Over 40% of the global market share is held by this region. Financial institutions in the U.S. and Canada are heavily investing in AI-driven cloud security, zero-trust frameworks, and real-time threat intelligence, keeping North America at the forefront of innovation and resilience.

Europe
Europe is a rapidly growing market, fueled by regulations such as GDPR, PSD2, and increasing digital banking trends. More than 28% of European banks have migrated core operations to the cloud with robust encryption and identity management tools in place. Countries like Germany, the UK, and France are advancing cybersecurity frameworks with public-private collaboration and significant government investments in cloud infrastructure security.

Asia Pacific
Asia Pacific is witnessing exponential growth due to digital transformation across developing economies and rising cyber threats. Banking institutions in China, India, Japan, and Southeast Asia are increasingly deploying cloud-native security solutions. With over 30% projected CAGR in cloud security adoption, the region is investing in cloud compliance, monitoring tools, and data localization to support both innovation and national regulatory demands.

Middle East and Africa
The Middle East and Africa are showing steady adoption of cloud security, driven by government-led digital banking reforms and increased awareness of cyber risk. Though currently accounting for a smaller market share, around 15% of banks in the region have begun adopting cloud access control, email protection, and intrusion prevention systems. Countries like the UAE and South Africa are emerging as regional cloud security hubs.

Latin America
In Latin America, the cloud security market in banking is evolving with increased investment in digital infrastructure and fintech expansion. Brazil and Mexico lead the regional adoption, with over 20% of major financial institutions beginning to transition to cloud-first security strategies. Growth is supported by rising mobile banking users, digital ID initiatives, and government-backed cybersecurity frameworks.