Technological innovations based on digital data promise to push the boundaries of financial inclusion. For example, financial institutions are offering digital credit and mobile insurance to people who have never used financial services by analyzing social media, mobile phone and other alternative data. What does cloud computing have to do with this? A lot, actually, as it is a technological solution that supports the collection, analysis and storage of data needed for such financial innovations. With financial regulators under pressure to set the rules for cloud computing, they should aim to better understand, and react proportionally to, the benefits and risks posed by the cloud.

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