Banks need a flight plan to navigate the cloud
According to our research—the 2022 Banking Cloud Rotation Index, which follows nearly 100 banks on their journey to cloud—in every area we measure, banks have nearly doubled the percentage of their workloads in the cloud. For core functions, they have more than doubled.
However, the progress they’ve made so far represents only 15% of overall workloads. Banks have a long way to go before their journey to cloud reaches cruising speed—and the tasks ahead of them are more complex than the ones they’ve already accomplished.
Fewer than half of the barriers to cloud adoption that we measure in our survey showed signs of a significant decrease from 2021 to 2022. The top barriers are now legacy infrastructure and the complexity of organizational change—problems that are not easily overcome.
We identified three main issues that banks will need to resolve in order to add more thrust to their journey to cloud:
Banks that are getting the most value from their cloud migration are focusing on key areas where the cloud’s capabilities can make immediate improvements to their bottom line:
Read our report to learn more about the progress banks are making on their journey to cloud. If you'd like to discuss your cloud migration in more detail, contact the Accenture Cloud Crowd.
A decisive, well-planned cloud journey should act as a powerful accelerant to transform the entire banking value chain.
According to the 2022 Banking Cloud Rotation Index, banks are moving their enterprise functions fastest, with 35% of workloads in that area already operating in the cloud. Surrounds and data and analytics are significantly behind at 20–21% of workloads migrated and core functions continue to trail with 7% of workloads migrated.
While cloud adoption is accelerating in all regions, there are differences in the functional areas each region is embracing. For example, European banks face regulatory challenges that have slowed their migration of core and data and analytics functions, but they lead the world in migrating enterprise functions. North American banks currently lead the pack in migrating their core and surrounds functions.
The 2022 Banking Cloud Rotation Index reveals that concerns about data sovereignty and privacy regulations decreased the most significantly year-on-year. Cost barriers also showed a significant decrease, and we expect that in the current macroeconomic environment banks will have more funds available to invest in their cloud migrations.
Industry cloud is making an ecosystem of pre-built cloud-based services available to banks so they won’t need to develop their own bespoke solutions. Some of these services are already available in the banking and financial services sector and we expect banks’ cloud strategies to shift significantly in this direction over the next few years.