The financial sector does not utilize the potential of the cloud

• Less than 40% of managers in the financial sector are fully satisfied with the effects of using the cloud.
• 84% of banks and insurers implement cloud solutions primarily to increase operational efficiency.
• Customer data protection and privacy maintenance pose a challenge to the industry.

The Capgemini World Cloud Report for Financial Services 2025 reveals clear differences in the approach to investing in cloud technologies between traditional and modern financial institutions. Most banks and insurance companies implement cloud solutions primarily to increase operational efficiency (84%), while fintechs and insurtechs mainly use the cloud to accelerate sales (62%). The analysis also suggests that only 12% of organizations in the financial services sector can be considered “cloud innovators”.

“Banks and insurance companies increasingly turn to cloud technologies to address challenges such as ineffective data management, gaps in digital security, regulatory complexity, and rising customer expectations. This is evidenced by a 26% increase in references to cloud technologies in the annual reports of the 40 leading financial institutions worldwide between 2020-2023. The current situation is becoming increasingly demanding for the sector, prompting companies to seek new ways to minimize risk and improve operational efficiency through cloud solutions,” says Tomasz Radwański, Head of Cloud Practice FS at Capgemini Poland.

Obstacles in fully leveraging the cloud

Companies, however, struggle to fully utilize the potential of cloud solutions – operational challenges continue to affect decision-makers, slowing the return on investment and the effects of initiatives related to cloud transformation. As a result, less than 40% of people in senior management positions are fully satisfied with the cloud outcomes, such as lower operating costs (33%), better scalability (27%), accelerating innovation (26%), development of analytics and data (24%), and improving security and regulatory compliance (21%).

The Capgemini report shows that challenges arise from financial institutions adopting a “lift-and-shift” approach, i.e. without introducing major changes in the architecture itself, when migrating systems to the cloud. This, combined with rapid scaling, leads to higher than expected costs. An additional challenge is the complicated pricing models and inefficient management and supervision of cloud resources.

“For financial institutions, the move to the cloud should be the start of greater changes supporting long-term development and operational flexibility. While some organizations are still primarily focused on cost savings, innovators use the cloud to thoroughly change their processes and adapt their offerings to the rapidly changing market. The cloud-native approach enables faster introduction of new products, reach a wider audience, and enhance customer loyalty. The cloud, especially in combination with generative artificial intelligence, also allows for effective investment in technologies that are strategically important for the future of the financial industry,” comments Tomasz Radwański.

Data protection is a challenge

One of the key operational challenges is adhering to the latest regulations and appropriate information resources. Banks and insurance companies collect vast amounts of information about their customers – from personal data to financial and transactional details. Managing these resources and ensuring their security is a significant challenge. The report identifies three main problems noticed by industry representatives:

• Legacy systems that make it difficult to combine data from different departments (71%)
• Challenges in protecting customer data and ensuring their privacy (70%)
• Low quality of data, often containing errors or lacking information (69%)

With the Digital Operational Resilience Act (DORA) coming into force in January 2025 and increasing regulatory pressure worldwide, financial institutions will soon face stricter legal compliance requirements. They will have to more rigorously oversee the use of technology platforms and cooperation with external suppliers.

The industry needs to promote a culture of innovation

The Capgemini report also indicates that as many as 81% of executives believe that a lack of appropriate technologies hinders the achievement of business goals. Most respondents perceive artificial intelligence (81%), predictive analytics (75%), and process automation (65%) as key technologies supporting the cloud ecosystem. However, traditional financial institutions still lack a sufficient level of maturity and skills in these areas: 15% have reached maturity in artificial intelligence, 30% in predictive analytics, and 22% in robotic process automation.

The research shows that 12% of banks and insurance companies can be considered cloud innovators – thanks to well-planned cloud strategies, scalable platforms, and mature ecosystems, they achieve better financial results. Compared to other companies, innovators more often exceed sales targets for additional products (32% vs 12%), data monetization (32% vs 10%), and new product development (22% vs 10%).

To enhance operational efficiency and support innovation, banks and insurers should focus on a data and cloud technology-based approach. In practice, this entails creating cloud-dedicated applications, investing in talent with cloud skills, promoting a collaborative culture that encourages the sharing of ideas and best practices, and facilitating access to necessary technologies for all teams.