Market Reports
published on Oct 17, 2024
Report Overview:
This document provides an update to NelsonHall’s assessment of the Cloud Services in Banking market in the light of recent market developments.
Who is this Report for:
NelsonHall’s market update for the Cloud Services in Banking market is designed for:
- Sourcing managers investigating sourcing developments within the financial services sector
- Vendor marketing, sales, and business managers developing strategies to target service opportunities within the financial services sector
- Financial analysts and investors specializing in the financial services sector.
Scope of this Report:
This Market Update report updates NelsonHall's assessment of the Cloud Services in Banking market, including:
- A recap of the key points from our last market assessment
- A summary of significant market developments since then
- A brief analysis of how the banking industry is responding to changing market dynamics.
Key Findings & Highlights:
During 2024, the pace of migration to the cloud has accelerated since our last market update. Increased cloud adoption by the industry has primarily resulted from a wider variety of banks in more markets adopting a cloud strategy for the first time. Our conversations with bank executives indicate they remain concerned about the value delivered by cloud services. To mitigate that risk, banks are setting tightly defined limits for each project and following those with rigorous rollout programs after initial trials. That strategy limits the initial scaling of operations. However, when a project reaches the rollout stage to multiple geographies, operations can scale very rapidly.
Banks want to transform their operations in 2025 by increasing their cloud-delivered services. Commercial banks are focusing on transforming core banking operations, and retail banks are focusing on transforming lending operations. Using the cloud will help the banks embed real-time analytics into business processes and deliver emerging functionality with fintech solutions.