Nearly three quarters of bank IT executives think that moving to the cloud will help their firms achieve their business priorities, according to a report from the Economist Intelligence Unit.
Cost is the biggest driver of cloud adoption, cited by 43%, followed by the adoption of AI, 34%, and improving customer experience, 21%. Business agility, elasticity and scalability are together cited by 40% of respondents as top drivers.
Meanwhile, almost 70% of banking executives believe big tech companies will become so mission-critical to the banking industry that they will have to become regulated institutions.
The report finds banks have generally been slower to take to cloud computing than other sectors. But the adoption of Software-as-a-Service and cloud infrastructure has accelerated since the pandemic, with over 30% of executives saying they are incorporating AI multi-cloud technologies into established banks to fend off fintechs and challenger banks.
Andrew Reeves, head, Temenos Cloud, says: “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.”