However, most entities are not able to leverage its full business value.
MADRID, 16 Nov. (EUROPA PRESS) -
91% of banks and insurance companies have already started their journey in the Cloud, which represents a significant increase compared to 2020, when only 37% of companies had undertaken this transformation, as indicated in the World Report on Cloud and Financial Services conducted by the Capgemini Research Institute.
However, this pace and its corresponding investment do not translate into effective Cloud adoption at scale, as more than half of the companies surveyed have only moved "a minimal part of their basic business applications."
The report highlights that, currently, 89% of financial services executives believe that a Cloud-based platform "is crucial to delivering the agility, flexibility, innovation and productivity necessary to meet growing business demands."
Likewise, 62% of financial services companies have begun using artificial intelligence (AI), with the goal of using it throughout the value chain in the next two years.
In fact, the study reveals that a large part of Cloud investments have been allocated to modern, easy-to-use, AI-based and customer-oriented applications.
The Cloud also has "a fundamental role to play in helping the sector effectively manage ESG reports to achieve its sustainability objectives", as Capgemini has assured, as it can provide them with the necessary tools to measure ESG impact.
This is evidenced by the fact that 51% of financial services companies mention improvements in transparency and information measures.
Capgemini Global Head of Cloud for Financial Services Ravi Khokhar explained that for today's financial services organizations, "ignoring the Cloud is not an option" and that "as businesses rush to adapt and implement AI generative, they should keep in mind that there will be no future benefits of AI that can be obtained without cloud-enabled systems.
Industry executives surveyed in this report across health insurance, life insurance, capital markets, payments, retail banking and wealth management identify risk and customer relationship management among their top three areas ripe for a early adoption of the Cloud.
In wealth management, more than half (60%) cite the advantages of using fraud detection techniques in the Cloud to make data-driven risk management decisions.
Similarly, more than a third of retail banking executives (39%) highlight the transition of complex credit risk management to the Cloud to shorten decision time in granting loans.
In turn, among life insurance executives, customer relationship management (55%) stands out as the top priority in their journey to the Cloud.
Despite the significant advantages, the report found executive concerns about the challenges associated with cloud migration.
Two-thirds (68%) identify data security as a barrier to adopting cloud solutions, while 51% point to high operational and transformation costs as potential obstacles.
Another 45% cite regulations, such as data sovereignty, as another factor that may pose difficulties.
To address these concerns, 39% of executives expressed their preference for taking advantage of the public Cloud, 49% prefer the private one, and the remaining 12% think that the hybrid is the best option.