Seven-in-ten IT executives in the banking sector – 72 per cent – report that incorporating cloud into their organisation’s products and services will help them achieve their business priorities.

The research, commissioned by banking software provider Temenos, also found just under half of these execs – 47 per cent – believe cloud adoption will do so “to a great extent”.

Four-in-ten – 43 per cent – of those surveyed cited cost as the biggest driver of cloud adoption, while 34 per cent cited AI adoption, and 21 per cent cited improved customer experience.

Business agility, elasticity, and scalability were together cited by 40 per cent of the research’s respondents as top drivers of cloud adoption.

The report claimed that banks have generally been slower to take to cloud computing than other sectors, but the adoption of software-as-a-service (SaaS) and cloud infrastructure has accelerated since the start of the pandemic, as banks attempted to cut costs and ramp up their digital transformation projects.

The research said that 82 per cent of banking IT executives said they now have a clear strategy for cloud adoption.

Some barriers still stand in the way of a full-scale embrace of the cloud by the banking sector according to the research, such as security, privacy, compliance, and governance concerns, which the research said are driving investment in both technology and talent.

The news comes as established segments of the financial services industry continue to move to the cloud. Last week, the world's largest financial derivatives exchange, CME Group announced it would migrate to Google Cloud as part of a 10-year strategic partnership - which the firms claimed would transform how global derivatives markets operate.

“The pandemic has clearly lit a fuse under cloud adoption with banks having to deliver and scale digital services rapidly,” said Andrew Reeves, head of cloud, Temenos. “However, cloud is also a prerequisite for success in the world of open banking and banking-as-a-service.”
He added: “These are megatrends, powered and enabled by the cloud, that are shaping the future of banking.”

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