How BFSI Companies Are Winning with Cloud Financial Services

July 1st 2024
Max Pavlov
Solutions Director
How BFSI Companies Are Winning with Cloud Financial Services


Key Takeaways

  • Cloud computing is transforming BFSI for businesses and customers alike
  • These services are gradually changing long-standing processes and cultures
  • Cloud can enable operational efficiencies, cost reductions, better security and enhanced customer experiences
  • Cloud, in conjunction with AI, will play an increasing role in BFSI in the years to come


Technology is transforming the world of business and finance, especially now that the use of cloud for financial services is becoming more commonplace. The leading adopters of cloud financial services are generating substantial efficiencies across cost, business continuity, agility and even sustainability.

That’s because cloud computing in banking is unlocking all the potential and insights that lie within big data. Analytics and machine learning are processing vast amounts of data, and revealing information about customer behavior, risk management and operations that inform better decision-making for the future.

In this blog, we’ll take a look at the changing role of cloud computing in financial services including how old perceptions around cloud banking are being swept away, how it can be a strategic advantage, and what the future holds for cloud adoption in banking.

How are perceptions around cloud computing changing?

Compared to many other industries, cloud adoption in banking has been relatively slow. Part of this is down to the regulatory challenges of storing sensitive data in third-party servers, and complying with different regulations in different territories simultaneously.

There was also a perception that cloud migration strategies would be too complex and take too long for BFSI firms to complete seamlessly, and building from scratch often seemed like an easier approach. In particular, the amount of disruption involved to normal operations and customer-facing services, with requirements to be operational 24/7 would be too great.

However, as technology has advanced, times have changed. As many other organizations in other sectors have successfully executed large-scale cloud migration strategies, banks and other finance firms have gained the confidence and knowledge they need to pursue their own. According to CapGemini research, as of 2020 only 37% of banks and insurance companies had started their cloud transformation journey; by November 2023, this had risen to 91%.

cloud transformation stats
Strategic BFSI Cloud Computing Benefits

As firms continue to advance with their cloud migration strategies, the scale of the transformation that cloud finance can generate is becoming clear, in particular on these three fronts:

BFSI cloud computing benefits

Operational Efficiencies and Cost Reduction

As most finance firms are large and complicated in nature, any streamlining of operations can yield some major efficiencies and cost savings. For example, cloud adoption in banking allows for greater rationalization of hardware and software licenses, and reduces the need for dedicated IT personnel to take care of infrastructure, all of which can save time, money and skilled human resource.

At the same time, cloud-powered automation and AI can make common banking processes like invoicing, reporting, payments and reconciliations far faster and more accurate than they would be if executed by humans. This saves further staff time, giving them the space to collaborate, get creative and add value elsewhere.

Cloud Integration and Enhanced Customer Experience

The advanced insights and better decision-making that cloud finance can enable, through the use of data analytics and business intelligence, can improve the services and experiences that banking customers receive every day.

At a time when customers expect more personalized services, cloud technology and AI are proving instrumental in gaining the insights into individual customer needs and preferences. This allows functions and offers to be tailored to specific customers, and maximizes the chances of gaining a positive response from them. This can come in tandem with real-time services and scalability, which meet rising customer expectations to receive fast and effective service - especially when they have problems that need to be resolved urgently.

Security, Compliance, and Disaster Recovery in Cloud 

The banking industry naturally faces tight regulation, because of the sensitivity of the funds and the data it handles. But this level of regulation is only becoming tighter, as cyber threats and public awareness of how their personal data is handled both become more pressing matters.

Cloud solutions are ideal for supporting stronger security and protection, as the robust measures of world-leading cloud providers can be embedded into the infrastructure and constantly enhanced as required. Cloud providers are also generally subject to strict security and compliance requirements, meaning that cloud infrastructure for banks is naturally strong around governance and risk management.

In summary: The Future of Cloud Computing in BFSI

Cloud financial services will only become more important in the years to come, especially as the use of automation and AI becomes more prevalent. 

While many banking firms are already using a range of AI tools, such as predictive analytics for fraud detection, more traditional machine learning algorithms, and Large Language Models (LLM) for generative AI, the advancing capabilities of these technologies means their practical use in cloud banking will only expand over time. This is especially true in the case of LLMs, which are finding their way into many aspects of the BFSI software landscape, for example being used to configure modern master dashboards through a simple human language interaction with a chatbot. 

Additionally, blockchain has the potential to drive even more improvements in how data is kept secure, private and transparently managed; its immutable ledger of transactions can protect against data tampering and ensure that data is always shared securely.

Overall, it’s clear that cloud computing in BFSI, especially when combined with AI, can be transformative in cutting costs, boosting efficiency, improving customer satisfaction and ramping up security. But with the technologies advancing so fast, and the need to plan cloud migration strategies carefully, with bold execution and strategic orchestration, working with specialist expertise and experience for emerging technologies is a must to ensure a seamless transition. 

Talk to Ciklum today and find out how our approach to experience engineering can help you explore cloud financial services, leveraging our proven track record of success with cloud computing in BFSI.

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