Infosys has released its new industry analysis, Cloud Radar: Banking Industry Report, which explores cloud use and spending in financial services, revealing that while banks are poised to increase cloud spending significantly in the coming year, less than half of existing cloud commitments remain untapped.
The report builds on Infosys’ previous Cloud Radar 2023 report, enriching insights through specialised research of industry executives and subject matter experts globally. This deeper look into financial institutions explains cloud will be the medium through which new technologies and enterprise transformation spreads across banking ecosystems.
Cloud Radar: Banking Industry Report identifies five key findings:
● Banks are ready to spend more money on cloud. Banking is among the industries that are most likely to increase funding for cloud in the year ahead and increases in cloud spending are expected to continue.
● However, many banks aren’t actually using the investment. Less than half (49%) of banks have consumed the cloud funding they have committed to.
● Risk management is not a top priority. Banks are most frequently using cloud services for loan origination, underwriting, and managing card payment systems but are less likely to use cloud for fraud prevention and risk management.
● Critical cloud decisions are siloed. 44% of bank cloud decision making is being made in isolation. This increases risk of missed opportunities and inefficiencies.
● Infrastructure modernisation efforts are trending positively. Banks are increasingly recognising the benefits of cloud migration for modernising their infrastructure. Nearly 75% of banks say cloud migration efforts are very effective or extremely effective.