A report by Capgemini reveals widespread dissatisfaction with cloud services among financial services firms, with fewer than 40% of executives expressing high satisfaction with their outcomes. The findings are based on a survey of 600 executives and 120 fintechs and insurtechs across 13 countries.
The research highlights several challenges that hinder firms from maximizing the potential of cloud solutions. Operational obstacles are slowing returns on cloud transformation initiatives and investments, leaving firms unable to fully realisze the benefits of cloud technology.
Key metrics show limited satisfaction across various cloud outcomes: only 33% of executives are highly satisfied with reduced operational costs, 27% with enhanced scalability, 26% with accelerated innovation, 24% with advanced data and analytics, and 21% with improved security and compliance.
Unexpected costs
The report identifies several factors behind this dissatisfaction, including the widespread use of a lift-and-shift approach to cloud migration, unexpected costs from rapid scaling, complex pricing models, and inefficient governance. Integration with legacy systems, data security concerns, and low data quality further complicate cloud adoption.
An overwhelming 81% of executives reported that the lack of appropriate technology impedes their business objectives. Key technologies such as artificial intelligence (81%), predictive analytics (75%), and robotic process automation (65%) are considered critical for a robust cloud ecosystem. However, maturity in these areas remains low, with only 15% of firms showing capability in AI, 30% in predictive analytics, and 22% in robotic process automation.
Despite these challenges, firms that adopt cloud-native strategies and foster innovation stand to gain significantly, achieving growth in upsell and cross-sell targets, data monetization, and product development. A robust cloud-based foundation is seen as essential for leveraging generative AI and other emerging technologies at scale, enabling firms to enhance customer satisfaction and enter new markets effectively.
The findings underscore the need for financial institutions to move beyond cost-saving measures and adopt innovative approaches to fully capitalize on cloud technology’s transformative potential.
