Financial firms stuck on cloud development

Financial firms stuck on cloud development

While cloud adoption by organisations accelerated during the pandemic, many financial organisations have chosen not to move back-office functions onto such external servers, according to a survey by Capgemini. The percentage of survey respondents who said they had started moving services onto the cloud increased from 37 per cent in August 2020 to 91 per cent…

While cloud adoption by organisations accelerated during the pandemic, many financial organisations have chosen not to move back-office functions onto such external servers, according to a survey by Capgemini.

The percentage of survey respondents who said they had started moving services onto the cloud increased from 37 per cent in August 2020 to 91 per cent in August 2023. The report found high levels of executive confidence in such platforms being able to improve customer services and experience, provided their organisations were able to move to the right service provider.

Back-office not secure

“To date, cloud investments have happened most often in modern, user-friendly, customer-facing applications,” the report said. “More than 50 per cent of the financial services industry executives we surveyed said they have not started migrating core business applications to cloud.”

In fact, earlier in 2023 there were signs that cloud adoption was already slowing in the business world generally. That is primarily because many organisations were concerned that public cloud services are not secure enough to host their mission critical applications, according to a wide-ranging by the Uptime Institute in July 2023.

Almost two-thirds of respondents (65 per cent) to that survey did not place mission-critical workloads in the cloud. When asked why, almost two-thirds (64 per cent) of those cited data security as a barrier to adoption: 41 per cent also expressed concerns over regulation and compliance.

Resiliency

Corporate cloud users are often concerned over how resilient cloud providers are – most major services have suffered outages. For example, in summer this year, Google Cloud services’ clients faced outages in April 2023 when a flood hit one of its West European data centres.

The incident, caused by an unexpected leak, sparked a fire that resulted in emergency shutdowns of “multiple zones”. It took the company 16 hours to douse the fire. Microsoft and AWS also made the top ten list of cloud outages this year.

But the Uptime Institute did not see the slowdown as representing a potential peak in demand. “Public cloud will continue to be the near-automatic choice for most new applications, but organisations with complex, critical and hybrid requirements are likely to slow down or pause their migrations from on-premises infrastructure to the cloud,” it said.





← Previous

Talent shortages hamper risk management efforts
Doing business has become more difficult and uncertain since 2021 and shortages of talent in…






Next →

Enterprise Risk Magazine – Winter 2023 Edition
The 'Winter 2023' edition of the Enterprise Risk magazine is available to read here. Download…

7 OCTOBER 2026

Key elements of a mature programme risk capability

Hosted by Vinay Shrivastava. Vinay's presentation will cover lessons he has learned over the course of his career. These insights will be shared using the principles of ISO31000 risk management.

Find out more

8 OCTOBER 2026

Pre-deployment agentic risk management

Delivered by Adam Grainger, the outcome of this session is to be able to support an agentic implementation with effective pre-deployment risk identification and mitigation.

Find out more

14 OCTOBER 2026

AI Transforming Enterprise Risk Management Activities

Risk management has changed considerably over the years, with new frameworks, standards and expectations shaping the way organisations manage risk. However, many of the day-to-day activities within Enterprise Risk Management (ERM) functions have remained much the same.

Find out more

Advertisement