A report by the Economist Intelligence Unit has found almost three quarters of bank IT executives believe moving to the cloud will help their companies reach their objectives.
The report – sponsored by banking technology company Temenos – found that just under half of those surveyed think that incorporating the cloud into their organisation’s products and services will help them reach their business priorities ‘to a great extent’.
The biggest driver of cloud adoption in the survey was found to be cost at 43%, followed by AI adoption at 34% and improved customer experience at 21%. Up to 40% of respondents underlined business agility, elasticity and scalability as top drivers.
Another key finding from the report was that 70% of banking executives believe big tech firms will become ‘mission-critical’ to the banking industry and that they will have to become regulated institutions.
The report also discovered that banks have generally been slower to take to cloud computing than other sectors, however, up to 30% of executives said they are incorporating AI multi-cloud technologies into established banks to fend off FinTechs and challenger banks.
Temenos Cloud head Andrew Reeves said, “The pandemic has clearly lit a fuse under cloud adoption with banks having to deliver and scale digital services rapidly. However, cloud is also a prerequisite for success in the world of open banking and Banking as a Service. These are megatrends, powered and enabled by the cloud, that are shaping the future of banking.”
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