A new report from the Capgemini Research Institute reveals that most financial institutions still struggle to maximize the value of their cloud investments. According to the World Cloud Report for Financial Services 2025, less than 40% of executives in the banking and insurance sectors are highly satisfied with the outcomes of adopting cloud solutions. Despite the fact that the majority seek to improve operational efficiency (84%), only 12% can be classified as “cloud innovators.”
The Context of Financial Institutions
The report identifies a complex landscape for banks and insurers, who must contend with inefficiencies in data management, cybersecurity gaps, regulatory complexities, and ever-evolving customer expectations. Between 2020 and 2023, mentions of cloud-related terms in the annual reports of the top 40 banking and insurance firms globally grew by 26%, reflecting a growing commitment to this technology as a response to these challenges.
Obstacles on the Path to Cloud Value
Despite expectations, results often fall short. Less than one-third of respondents reported being satisfied with key aspects such as:
- Reduction of operational costs (33%)
- Improvement in scalability (27%)
- Acceleration of innovation (26%)
- Optimization of data and advanced analytics (24%)
- Enhancement of security and regulatory compliance (21%)
The report notes that these difficulties often arise from approaches such as direct migration (lift-and-shift), complex pricing models, and inefficient management of cloud resources.
Data Protection and Regulatory Challenges
Secure data handling remains a critical priority for financial institutions. Three main concerns stand out in the report:
- Legacy Systems: hinder integration of siloed data (71%).
- Privacy: challenges in protecting customer data (70%).
- Data Quality: incorrect or incomplete information (69%).
With regulations like the European Digital Operational Resilience Act (DORA) coming into effect in January 2025, increased regulatory demands regarding the use of technology platforms and third parties are expected. These pressures could complicate compliance with regulations while pursuing innovation.
The Role of Innovation and Cloud-Native Culture
Only 12% of institutions can be considered “cloud innovators,” a group that excels in leveraging scalable platforms, mature ecosystems, and data-driven strategies. These innovators outperform their competitors in key indicators such as:
- Meeting cross-selling and upselling targets (32% vs. 12% for others).
- Data monetization (32% vs. 10%).
- Development of innovative products (22% vs. 10%).
The report recommends that institutions adopt an innovation-centric approach, which includes:
- Developing applications designed natively for the cloud.
- Investing in professionals with specific cloud skills.
- Creating a culture that fosters idea-sharing and best practices.
- Democratizing access to technology across the organization.
Outlook for the Future
With technologies like artificial intelligence, predictive analytics, and robotic automation gaining traction, the report suggests that traditional institutions must accelerate their maturity in these areas. Currently, only 15% of entities exhibit mature capabilities in artificial intelligence, while 30% do so in predictive analytics, and 22% in automation.
Ravi Khokhar, Global Head of Cloud Financial Services at Capgemini, concluded: “Cloud adoption should be viewed as the start of a transformational journey, not the final destination. Institutions that integrate a cloud-based innovation culture will be better positioned to launch new products, access new markets, and satisfy their customers.”
The report emphasizes that in order to achieve successful transformation, financial institutions must prioritize a cloud-native strategy and address the structural challenges that hinder their progress. The cloud is poised to be a key driver of growth and competitiveness in the financial sector.
Access the report from CapGemini.