Financial Firms Express Disappointment Over Cloud Results

Banks and other financial companies are not happy with how cloud services are working for them, according to a report by Capgemini. The report shows less than 40% of executives are satisfied with their cloud services. The recent findings came from a survey of 600 executives and 120 fintech and insurance technology companies in 13 countries.

According to the update, banks face many problems when they try to use cloud services. These issues prevent them from reaching their desired outcome. Financial firms revealed that they are finding it difficult to get full value from their cloud technology.

33% of Executives Say Cloud Services Reduced Costs

The latest report shows that only 33% of executives said cloud services helped reduce costs. About 27% revealed that it helped their systems grow better, and 26% noted that it provided new ideas. Other benefits, like improved security and using data in better ways, also disappointed many firms.

The study showcases that some banks use a simple way to move their work to the cloud, called “lift-and-shift.” This means they move everything to the cloud without changing how they work. According to the update, this method brings high costs, unclear pricing, and poor management. These problems stop banks from fully enjoying the benefits of cloud systems.

Ravi Khokhar, the global head of cloud for financial services at Capgemini, said the research shows that many banks see the cloud as a way to save money. However, some smart companies are using cloud technology to create new ideas and change how they work. He noted that financial firms should develop stronger plans to utilize cloud systems better.

Capgemini’s Report Reveals A Lack Of Tech Skills Among Financial Companies

Capgemini’s report indicated that most financial companies lack skills in new technology. About 81% of executives said they do not have the right tools to meet their goals. Many revealed that artificial intelligence, predictive analytics, and robotic process automation are very important for cloud success.

According to the update, only 15% of financial companies can use artificial intelligence very effectively. About 30% can use predictive analytics well, and just 22% are skilled at robotic process automation. This lack of skills prevents banks from fully utilizing the cloud.

Even though many firms struggle, some announced that they are performing well with cloud systems. These companies are seeing better sales, improved use of data, and more chances to create new products.

Khokhar said banks and insurers should use a “cloud-native” way to build a culture of new ideas. He added that cloud systems can help firms work better with new technology like generative artificial intelligence.

Capgemini’s report suggests that banks need to improve their cloud strategies to fix these problems. By solving these challenges, financial firms could get better results and meet their goals. According to the update, cloud services can bring many benefits if companies find the right ways to use them.