Capgemini – Cloud in Financial Services

Financial services firms are increasingly turning to cloud-enabled solutions as they undergo digital transformation in response to market volatility and the need for business growth. A report by Capgemini found that more than 80% of industry executives agreed that superior customer experience and operational excellence are key to overcoming challenges and driving growth. Cloud-enabled platforms have become essential for scalability, flexibility, productivity, innovation, and agility. The report noted that while many firms have migrated non-core applications to the cloud, a significant portion of core applications still remain on-premises, limiting the full advantages of cloud-based systems. Composable platforms, which incorporate pre-built components and enable process redefinition, cloud migration, and integration of customer-facing applications and back-end functionalities, help increase flexibility and improve digital collaboration, scalability, cost efficiency, and customer experience. A phased approach is recommended for successful cloud migration, with priority given to specific functionalities such as risk management for banks and policy servicing for insurers. A comprehensive cloud strategy and roadmap, focusing on key businesses and adoption areas, are critical for enabling business growth. Operational productivity and customer satisfaction are key drivers for cloud migration, and an effective cloud target operating model must address ROI, talent, infrastructure, security, and partnerships. By implementing cloud at scale, financial services firms can unlock their ability to leverage new technologies such as generative AI and gain a competitive edge in an innovation-powered future.