Despite consistently citing digital adoption as a top business priority, the financial services industry has lagged behind other sectors in migrating its legacy systems. A recent PricewaterhouseCoopers survey revealed that 81 per cent of banking CEOs were concerned about the speed of technological change, a higher percentage than any other business segment.
Reasons for this anxiety range from the complexity of existing infrastructure, to regulatory challenges and concerns over cyber security. It’s hardly surprising risk-conscious financial institutions have been wary of taking the digital plunge.
The outbreak of Covid-19 has only intensified the demand for digital services. Consumer preference for contactless payments, for example, has exploded since the onset of the pandemic. It’s a trend directly tied to concerns around social distancing and disease transmission, but looks certain to remain a facet of the “new normal”. With the global digital payments space forecast to rise by over $23bn in the next four years, cloud adoption will play a vital role in enabling and accommodating such growth.