Scalability and Security Challenges of Cloud Computing in the Banking Industry

The rapid adoption of cloud computing has significantly transformed the banking industry, driving operational efficiency, cost reduction, and scalability. However, these benefits come with critical challenges, especially regarding scalability and security. Addressing a gap in understanding the nuanced relationships among these factors, this study explores the influ- ences of operational efficiency, security concerns, and regulatory compliance on cloud infrastructure scalability within the banking sector. Grounded in the Technology Acceptance Model (TAM), data were collected from IT professionals and decision-makers across banking institutions and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), chosen for its capacity to handle complex variable interactions. Findings indicate that operational efficiency positively impacts scalability, while security concerns show a nuanced influence that varies by context. Additionally, regulatory compliance enhances scalability, though its moderating effect on security concerns suggests a need for further exploration. These insights offer actionable guidance for banks of various sizes, informing a more strategic approach to cloud adoption and management.