NxtGen announces sovereign cloud for BFSI

Cloud and data center provider NxtGen has announced the launch of its sovereign cloud, which has been built to meet the demands of the banking, financial services, and insurance (BFSI) sector. Called the Financial Services Cloud (FSC), it aims to address the regulatory compliance requirements of the highly regulated BFSI industry. 

As per NxtGen, there are more than 400 regulatory controls levied on the financial sector in India from six different governing bodies including RBI, SEBI, IRDAI, MeitY, NPCI, and Cert-In.

NxtGen’s FSC offers data residency within India and zero exposure to foreign legal frameworks, ensuring full sovereignty. FSC will also provide customers with the right to audit. This will allow regulated entities (REs) direct infrastructure access to verify security, compliance, and operational controls.

Some of the features include PAM (Privileged Access Management), DAM (Database Activity Monitoring), HSM (Hardware Security Modules), SBOM (Software Bill of Materials), and 24/7 managed compliance services. It is built with geo-redundant infrastructure and tailored recovery solutions to help organizations mitigate operational risks and resume services with minimal disruption.

“We’ve been working with over 30 organizations—ranging from traditional banking customers to a large number of FinTech players—on various services. This isn’t just a new system; it’s one that has been thoroughly validated in collaboration with them. We've successfully migrated these customers from their existing private or public cloud environments onto this new platform,” NxtGen CEO AS Rajgopal said during the media briefing. He added that FSC is operational and has endorsement from 30 customers so far. 

Rajgpal said that the service has been in works since 2022. Over over 4,500 annual regulatory directives have been distilled into 833 critical controls embedded directly into our infrastructure.