The Role of Product Quality and Security in Cloud Adoption for Financial Services

This study quantitatively examines the drivers behind public cloud service adoption within the U.S. financial sector, focusing on how product-related factors influence trust. Employing Partial Least Squares Structural Equation Modeling (PLS-SEM) and leveraging Alhogail's conceptual trust model, the analysis reveals the critical role of product quality, security assurances, and social influence in shaping Trust among financial institutions. The research highlights that Trust, significantly impacted by the quality and security of cloud services, is fundamental in the decision-making process for adopting cloud technologies. It underscores the importance of superior product features and robust security measures, complemented by strict regulatory compliance, as essential for building Trust within this highly regulated industry. Social influences from industry peers and thought leaders also positively affect cloud adoption perceptions, emphasizing the need for cloud service providers to engage these networks to facilitate broader acceptance. While the study points out potential limitations such as sample bias and the subjective assessment of Trust, it calls for further exploration into trust dynamics and their impact on cloud adoption strategies. Recommendations for future research include a strategic emphasis on enhancing security, maintaining compliance, and effectively utilizing social influence to mitigate adoption barriers and encourage widespread integration of cloud services in financial operations.