The findings show banks are already seeing value in cloud technologies, which is driving them to accelerate implementation and increase collaboration with hyperscalers.
NEW YORK, June 24, 2024 /PRNewswire-PRWeb/ -- American Banker, Arizent's leading resource for senior executives in financial services, publishes its Bank of the Future 2024 research report, which analyzes where banks are in the cloud migration process, the challenges they still face and the common approaches they have taken to address those challenges. Sponsored by ServiceNow, the report's findings reveal banks are already seeing value in cloud technologies, which is driving them to accelerate implementation and increase collaboration with hyperscalers.
According to the research, 66% of banks surveyed are currently using hyperscalers to advance cloud initiatives or will do so in the next 12 months.
No matter what strategies or partners banks are using, the move to cloud technology is undeniable. On average, banks have now moved more than half of their IT infrastructure to the cloud; a year from now, they expect that number to increase to two-thirds. Looking further ahead, in the next three years 61% plan to shift most or all of their data center workloads to the cloud.
"Cloud technology has become indispensable for banks. They're past questioning whether they should move data to the cloud and focused on when and how," says Janet King, Vice President of Research at Arizent. "Nearly all banks indicate cloud technology is at least a moderate priority, and 84% say it's either a high priority or a strategic imperative."
Whether they consider cloud technology a strategic imperative or not, 98% of banks are making cloud technology investments with one or more specific business goals in mind. Roughly half are pursuing productivity or efficiency gains (51%), better operational resiliency (49%), reduced operating costs (48%) or increased agility (48%). Data security and cybersecurity is also a driver of adoption for 45% of banks.
With regards to challenges, concerns about security, data privacy and protection persist, but banks are increasingly seeing their cloud implementation deliver levels of data security and privacy at least on par with their on-premise solutions. Moreover, banks are actively addressing these and other concerns through their choices of cloud architectures and partnerships with outside service providers.
"The value banks are realizing from cloud technology implementations have lit a fire under the industry to accelerate progress," King continues. "As a result, 96% describe their partnership with a hyperscaler as a critical ingredient or very effective at advancing their cloud initiatives and goals forward."
The findings of this research report are being presented and discussed at American Banker's DIGITAL BANKING conference, which takes place at The Boca Raton resort in Florida June 24-25, 2024.
To read more on how banks are addressing key challenges — such as data privacy and security through cloud architecture choices — download the full report here: https://www.americanbanker.com/research-report/cloud-migration-hits-its-stride
Research Methodology
This research was conducted online by American Banker (an Arizent brand) during April and May 2024 among 181 bank and credit union leaders about their institutions' cloud priorities for 2024.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About American Banker
American Banker empowers banking professionals with unique analysis and insight into the ideas transforming their business and industry. Across its journalism, events, research and benchmarking, it helps drive the way forward through the complexity of business innovation, retail and commercial disruption, technology, regulation and reform. With a banking community 850K strong, American Banker's content connects leaders online, in person and in print every day.
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About ServiceNow
ServiceNow (NYSE: NOW) makes the world of financial services work better for everyone. Over 1,000 financial institutions globally use ServiceNow's cloud-based platform and solutions to intelligently automate processes and services across their businesses. So financial institutions can future-proof their customer experiences, employee engagements, risk management, security, and technology innovation. And we can all create the future of financial services that we imagine.
For more information, visit: servicenow.com/financialservices
SOURCE Arizent
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