Concerns are growing among regulators that an outage or failure at a tech giant that provides outsourced cloud services to a large number of institutions could cascade through the financial system, according to a senior executive from the Federal Reserve Bank of New York.

Regulators acknowledge there is a trade-off between relying on a handful of vendors to provide services that improve institutions’ resilience to shocks on an individual basis – for instance, by enabling workers to ‘remote in’