In 2020, firms hurried to accommodate remote work, strengthen up security, and migrate on-premises technologies to the cloud, as the digitalization of work increased across the board.
The financial services industry was the clearest example of this new guideline (and the advantages that come with it). Because, while the industry recognizes that cloud is critical to its success, it is also recognized for being hesitant to get its cloud operations off the ground. When they do, the benefits are immediate and profound.
Why Are Financial Services Companies Migrating to the Cloud?
When you ask organizations from a range of sectors why they switched to the cloud, more than 60% will say it was for cost savings and the elimination of manual updates.
When you ask financial services businesses, the response is a little different. The elimination of hosting and hardware costs remains a top objective, with 64% naming it as a cause for transfer. And, according to 52% of respondents, removing manual updates is still a major priority. However, a sizable 60% said they were motivated to make the shift by a digital transformation command.
How Does Cloud Migration Benefit Financial Institutions?
Cloud is better than or equivalent to server in every category. However, financial services firms are more likely than other businesses to place a high value on particular attributes.
A stunning 75% of financial respondents said cloud innovation is better than server innovation (with 25% saying it's equal and not a single poll respondent saying cloud innovation is worse).
Change management reveals a similar story: 62% of financial services firms feel it's better on the cloud, while 38% say it's equivalent to server (yet again, 100 percent satisfaction with cloud).
Reliability (83% feel it's better on the cloud), availability (79%), and automation are also high-ranking attributes for financial services (71%).
Cloud Migration Means Faster Benefits
According to a survey, financial services firms are receiving significant benefits from cloud computing. But the narrative of how quickly they're reaping those advantages is even greater.
If you ask any industry how soon they realized benefits from a cloud migration, 89% would say they saw them within six months. When the same question is asked about financial services, the answer is 100%. Every single person polled claimed it took less than six months to see the benefits of the cloud.
Cost Optimization with Cloud Migration
The cloud is also a money-saving machine for financial services firms: 92% of respondents believe the shift to the cloud reduces admin time by at least 11%, and 86% say it saves 11% or more on hardware maintenance expenses. Furthermore, 82% report at least 11% fewer defects reported by their end customers.
That admin time reduction is a critical piece of the jigsaw for financial service providers since it frees up teams to focus on providing value rather than updating spreadsheets.
Cloud Migration Is Easy
While clients across industries report considerable benefits from cloud migration, financial services are more likely than others to fall in love with cloud and have their digital transformation efforts pay off handsomely.
These efforts may have begun with a top-down directive for digital transformation, but they are benefiting workers and consumers at every level. And we're quite proud of it.