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World Cloud Report 2023 – Financial Services

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Is your cloud journey taking you where you need to go? Create business value in an innovation-powered future

Challenged by macroeconomic volatility and other market dynamics, the financial services industry is struggling to maintain business growth momentum. As a result, many firms are strategically embracing digital transformation, and adoption of cloud-enabled solutions is essential to gaining competitive advantage.

The findings in this inaugural World Cloud Report – Financial Services reflect global survey responses from 500 banking and insurance executives responsible for cloud decision-making and 200 senior executives at FinTech, Insurtech, and technology/cloud companies; 30+ senior cloud experts across the industry also participated in focused interviews. Key results include:

  • Financial services institutions can overcome business challenges and unleash growth through superior customer experience and operational excellence – and the right platform is critical.
  • Composable platforms can help redefine processes, move to the cloud, and integrate cloud-enabled customer-facing applications and core back-end functionalities.
  • A comprehensive cloud migration strategy and roadmap, and the implementation of an effective cloud target operating model, are keys to success.
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Key highlights

Highlight 1

Cloud will be a key enabler of bank and insurance firm business growth.

More than 80% of the financial services industry executives surveyed for this report agree that firms can overcome business challenges and unleash growth through superior customer experience and operational excellence. The right platform is critical, and cloud as an enabler is catalyzing growth for financial services firms, as 91% of our respondents indicated.

cloud enabling banks and insurance firms growth
Banks and insurers have accelerated their journey towards cloud.

The banking and insurance industries have accelerated cloud adoption initiatives in recent years: the percentage of firms which have embarked on their cloud journey rose from 37% in August 2020 to 91% in August 2023. Our survey found North America to be the global leader, with a 98% rate of initial cloud adoption among financial services firms in the region.

cloud acceleration for banks and insurance firms
Cloud-enabled transformation is less frequent in middle- and back-office functions.

To date, cloud investments have happened most often in modern, user-friendly, customer-facing applications. More than 50% of the financial services industry executives we surveyed said they have not started migrating core business applications to cloud.

financial services cloud-enabled transformation
An effective cloud migration roadmap creates business value.

A comprehensive cloud strategy and roadmap are critical to overcoming cloud migration challenges and enabling business growth. As a first step, consider an end-to-end, phased approach to digital transformation, prioritizing key businesses and adoption areas. Next, create and then implement a path for cloud modernization, enablement, and implementation. And finally, take full advantage of cloud-enabled systems to deliver the best customer experience.

cloud migration roadmap for FS

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Meet our experts

Ravinder Khokhar

Global Head of FS Cloud

Shashi Gupta

Global Head of FS AWS Center of Excellence

Vivek Desai

Global Head of FS Microsoft Cloud Center of Excellence

Daniel Wolff

Global Head of FS GCP Center of Excellence

Ramandeep Singh

Global Head of FS Cloud Engineering

Ajay Walgude

Global Head of FS IBM and RedHat Hybrid Cloud Center of Excellence

Elias Ghanem

Global Head of Capgemini Research Institute for Financial Services

Chirag Thakral

Senior Director, Financial Services

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