Cloud Computing & Financial Services for the Poor: Primer & Procurement Guidance

This guide offers assistance for policy officers, project managers, donors and implementation partners on managing risks in cloud computing. It focuses particularly on microfinance and mobile money (m-money) services, which demonstrate the promise and perils of relying on cloud services.

The guide outlines a systematic approach to procuring cloud-based services and a checklist of issues to consider in concluding a contract for cloud-based services. It also discusses regulatory issues raised by the cloud computing paradigm in mobile financial services. Key points include:

• Cloud-based services offer economic advantages for development projects, but entail certain risks;
• Cloud computing is assuming a central place in the provision of financial services for the poor, especially through microfinance and m-money services;
• Users of cloud-based services entrust physical custody of their data and control of critical applications to third parties;
• End users of cloud-based services cannot anticipate and address risks without a clear understanding of the details of these services;
• A systematic approach to qualifying and selecting cloud service partners, and attention to key contract issues will normally suffice to protect end users;
• Regulatory oversight is needed if disruption or of a cloud service might impact the larger economy.