Despite well-publicised concerns regarding security, compliance and data integration issues, banking institutions have begun embracing cloud computing across the services spectrum. While banks seeking agility, faster time to solution and lower, more-flexible cost structures in IT delivery are consuming cloud services — 51 per cent of North American banks have some form of adoption of software as a service (SaaS) — they remain sceptical about security and are reluctant to put core areas of functionality and information in the cloud, significantly limiting the market potential of cloud computing. In the midterm (2012 through 2014), data integration and compliance issues are likely addressable by cloud providers; however, security concerns will likely not be overcome in the near term or midterm for solution areas that process information classified as restricted or viewed by banks as proprietary.