Investment banks are set to increase their use of public cloud by more than 50% within the next five years, according to a survey conducted by It consultancy GFT.

Three-quarters of investment banks are more excited by cloud computing’s ability to introduce agility and resource elasticity into their businesses than its ability to simply deliver cost reductions (50%).

With these benefits mind, investment banks are most keen to introduce cloud in development / testing (67%), front office (55%) and risk (43%) departments. The majority of new and planned use cases for cloud in investment banks involve utilising high performance computing (63%) and big data (52%) capabilities.

Despite this, some concerns about cloud adoption remain, especially when it comes to regulation – 90% of respondents cited it as their major concern. Other concerns included data protection (72%), and security (70%).

The biggest regulatory sticking point is seen to be the lack of clarity on how cloud will be governed in the capital markets sphere. Increased regulation covering data protection (GDPR in Europe) and security concerns still prevail, although banks generally acknowledge the excellent security focus of the main cloud vendors.

“The shift to public cloud in investment banking has been slow to start, but we see that banks are now willing to embrace the transformation and reap the significant benefits of becoming cloud native,” said Andrew Rossiter, head of technology services at GFT.

“Respondents were surprised to find such widespread agreement amongst their peers to embrace the challenge of transforming their application estate to become truly cloud native. Some regulatory and security issues around cloud still remain, but banks have taken great strides to overcome these and are advancing their technology estate transformation plans at a rapid pace. The ‘war for talent’ to achieve this has only just begun!”

by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com
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