The cloud and AI race in financial services

As we prepare for Google Cloud Next 2024, we reflect on the conversations we had at last year’s flagship Google Cloud event. This blog post explores the future of financial services, focusing on the role of artificial intelligence (AI) and cloud computing. 

Episode 46 – Future of financial services with Zac Maufe, Head of financial services industry solutions, Google Cloud 

In this episode between Zac Maufe, Google Cloud’s Head of Financial Services Industry Solutions, Dave Chapman and Rob Kernahan, the hosts of the Cloud Realities podcast, the conversation explores the challenges and opportunities presented by these new technologies. 

Financial Services – the big cloud catch-up 

The financial services industry has historically been behind the race in cloud adoption, owing to stricter regulations, complex legacy systems, and data fragmentation. While banks have been cautious about migrating sensitive financial data to the cloud, times are changing. With regulatory frameworks adapting, and the benefits of cloud computing – scalability, agility, and cost-efficiency – becoming increasingly attractive, the cloud catch up is a current reality. 

So what cloud options are financial services firms exploring? 

Core transformation and data liberation 

Financial institutions are now exploring various cloud-based solutions, including: 

• Core infrastructure modernization. Evaluating options like cloud-native core systems or “lift and shift” approaches to migrate mainframe workloads. 
• Data transformation. Breaking down data silos and leveraging cloud-based data management tools can uncover new insights and improve decision-making. 

Operation AI exploration 

AI, particularly LLMs, is a major area of exploration for financial services. Here are some potential applications: 

• Enhanced employee productivity. LLMs can assist analysts and coders, allowing them to work faster and handle more complex tasks. 
• Improved customer service. LLMs can power chatbots and virtual assistants, offering faster and more efficient support. 
• Risk management and fraud detection. AI can analyze large amounts of data to identify patterns and flag potential risks. 

Security and compliance in focus

While AI offers exciting possibilities, security and compliance remain paramount in financial services. Here’s how these concerns are being addressed: 

• Data ownership and control. Financial institutions retain ownership of their data throughout the AI process. 
• Security integration. Cloud-based AI tools leverage the same security controls as other Google Cloud Platform services. 
• Model governance. Establishing frameworks to ensure the explain ability, traceability, and responsible development of AI models. 

Regulation: Keeping pace with innovation 

Regulations surrounding AI are expected to evolve alongside the technology. Collaboration between regulators and the financial services industry is crucial to ensure responsible innovation and consumer protection. 

Conclusion 

The future of financial services is shaped by cloud adoption and AI. As cloud platforms become more secure and compliant, and AI capabilities mature, financial institutions will be better equipped to navigate the ever-changing landscape and deliver exceptional value to their customers. 

Preparing for Google Cloud Next 2024 

We’ll be at Google Cloud Next with podcasts, exclusive client sessions and demos exploring exactly how we are transforming financial services with cloud, Data/AI, and software engineering on Google Cloud. 

Innovation, meet intelligence. 

Explore the power of our collaboration with Google Cloud.