In the Fall of 2020, Celent launched its “Future of Cloud in Financial Services” research hub, highlighting our coverage of advances in financial services technology in the Age of Cloud. It is against this backdrop that Celent sought to understand ‘ banks’ strategies and ambitions about public cloud adoption, barriers, and drivers for critical corporate/transaction banking solutions.
In the Retail Banking segment, cloud computing is considered a mature, mainstream technology for many banking processes. However, for Corporate Banking, cloud adoption and migration is moving more slowly. The responses show that security and compliance concerns, along with internal factors, are slowing the pace of migration to the cloud. But the cloud migration business case is becoming more evident as corporate bankers recognize benefits such as increasing agility, freeing up budget, and moving away from capital expenditures as the highest contributors.
90% | Almost 90% of respondents use a third party firm to assist with cloud migration, with one of the major cloud services providers, e.g. AWS, Google, Microsoft, chosen most often. |
88% | Respondents cited increasing agility, freeing up budget, and moving away from capital expenditures as top business benefits. |
80% | Respondents are working with existing vendor partners to support their cloud computing strategy. |
70% | Respondents are choosing selective migration of non-client facing systems to the cloud, keeping client-facing platforms and customer data on premise. |
Based on Celent’s corporate banking public cloud survey results, along with years of corporate banking technology research, we recommend that banks consider three essential things as they set their cloud migration strategy.
