Financial Services Firms Speed Up Cloud Adoption for Agility and Innovation
Financial services companies worldwide are boosting their cloud technology investments with a clear focus on agility, resilience, and innovation rather than just cutting costs. New research by the London Stock Exchange Group (LSEG) surveyed 453 executives and found that 87% of firms have increased cloud spending over the past two years.
Rather than immediate savings, firms are targeting strategic advantages like scalability, revenue growth, and enabling artificial intelligence (AI) initiatives.
Multi-Cloud and Hybrid Strategies Take Hold
The study reveals that 82% of financial firms are using multi-cloud or hybrid-cloud setups. This approach supports flexibility and risk management, helping companies avoid over-reliance on a single provider and adapt quickly to changing needs.
Regulatory Compliance Shapes Cloud Plans
Regulations play a major role in cloud strategy adjustments. About 84% of respondents have updated their cloud approaches to comply with regulations such as the EU’s Digital Operational Resilience Act (DORA) and the General Data Protection Regulation (GDPR).
According to Stuart Brown, Group Head of Data & Feeds at LSEG, adopting cloud is now a key business priority, not just a tech decision. Firms are enhancing operational resilience and preparing for AI-driven innovation in areas like fraud detection and risk management.
Security Concerns Remain, But Resilience Is Key
Nearly half of the firms (47%) point to sophisticated cyberattacks as their top security concern, with data privacy and breaches following close behind. Despite these worries, 92% say operational resilience is critical when choosing cloud providers, highlighting the need for trusted, dependable partnerships.
More than half (54%) have completed cloud migration and are realizing benefits in risk management, customer engagement, and enterprise-wide data access. Notably, 83% of firms using cloud for risk management have completed migration, the highest rate among use cases.
Return on Investment Looks Beyond Cost
Only 34% of firms focus on immediate cost savings from cloud adoption. Instead, 51% measure success by scalability, and 47% by revenue growth or improvements in security and resilience. Still, 61% report reduced IT infrastructure costs, especially in EMEA and APAC regions where regulation pushes multi-cloud adoption.
The study also finds that 91% of firms are using or planning cloud-based AI projects within the next year. Top use cases include generative AI (60%), fraud detection (50%), and risk management (50%). Investment firms are leading AI adoption, with 84% describing themselves as somewhat or very advanced.
Shifting Cloud Service Models
Looking forward, firms are reconsidering their preferred cloud service models. While Software as a Service (SaaS) remains dominant at 43%, interest in Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) is growing. This suggests a move toward more customized, in-house cloud applications.
Practical Takeaways for Operations Professionals
- Focus cloud strategies on business value like scalability, revenue growth, and AI enablement, not just cost savings.
- Consider multi-cloud or hybrid models to increase flexibility and manage risk.
- Prioritize operational resilience and security when choosing cloud providers.
- Stay updated on regulatory changes like DORA and GDPR to ensure compliance.
- Explore AI use cases in cloud environments, especially generative AI and fraud detection.
For operations teams looking to deepen AI knowledge and skills relevant to these trends, exploring targeted learning resources can be valuable. Check out Complete AI Training’s latest AI courses for practical, role-focused programs.
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