Business white paper

Cloud adoption in the financial services industry

More and more financial service organizations are adopting the cloud to deliver innovation, customization, and security to generate a unique competitive advantage.

Looking forward: Financial services in the cloud

The report on the finance cloud market by the research firm, MarketsandMarkets, has predicted that the finance cloud market will grow at a CAGR of 24.4% to $29.47 billion by 2021. This growth will be driven by green IT, specialized services, and the need for business agility and market focus, apart from customer management.
  • During the forecast period, the professional services segment would dominate the market.
  • Among the applications available in this market, the customer applications would have major growth because the BFSI companies want to leverage the benefits these applications offer, like improved productivity, lowered costs, advanced data analytics and more, to gain competitive advantage and long-term benefits.
  • Regionally, North America would have the largest market share because of the wider internet penetration, strong economy and the shifting of isolated infrastructure to the cloud. This will result a reduction of CAPEX spend, lowered complexity in IT management, and improved security and agility.

The benefits of cloud platforms

We know that finance companies are typically the first into technology trends, and the last out. Cloud is no exception. As the previously mentioned report concludes, and as we see in the marketplace as well, financial services are looking to move to cloud-based platforms for a few key reasons:
  • The ability to provide unique types of services in the marketplace, such as new investment types - Considering that their products are rather abstract, this becomes a core focus since they have much the same products as their competition.