Fin, tech, cloud, work

Most financial institutions today have a presence in the cloud, but adoption in the financial-services sector is still at a relatively early stage. Among the financial-services leaders who took part in a recent McKinsey survey, only 13% had half or more of their IT footprint in the cloud. But migration to the cloud is gathering momentum. More than half of the survey respondents - 54% - said they expect to shift at least half of their workloads to the public cloud over the next five years.

Given the value at stake, this sense of urgency is hardly surprising. A McKinsey analysis found that Fortune 500 financial institutions alone could generate as much as $60-80 billion in run-rate EBITDA in 2030 by making the most of the cost-optimisation levers and business use cases unlocked by cloud.

Some early adopters are making inroads into this pool of value. One European bank was able to deliver the same output with 20-30% smaller teams, after onboarding them on DevSecOps and cloud. Another bank in Asia that migrated more than half of its workloads to the cloud can now develop and launch multiple new products rapidly and at scale in international markets. And another European bank has partnered with a leading cloud service provider to develop AI-based cyber-defence capabilities to improve security for its customers....


From 'Three Big Moves That Can Decide a Financial Institution's Future in the Cloud', McKinsey & Co