Finance Cloud is one of the most powerful technology platforms that CIOs are heavily investing in. In the banking sector, a majority of the CFOs and financial analysts are looking at Finance Cloud to transform their business operations. In this Predictions Series article, we are exploring the role of the Finance Cloud in the global economy and how customers could expand on their business opportunities using cloud computing and other convergent capabilities that are part of this landscape.
What is Financial Cloud?
A Financial Cloud is a Cloud technology-driven system that allows users to automate, streamline, simplify, and evaluate various financial operations using core IT and flexible SaaS solutions. In recent years, a large percentage of CIOs and CFOs have channelized their resources to fully transform their financial services operations with contemporary Cloud and IT modernization benchmarks, bringing Financial Cloud to the center of all transformational journeys within the organization. CFOs are comfortable with Cloud solutions owing to better technologies for data mining, automation, and security, allowing the entire organization to reap benefits from an enterprise-wide financial accounting platform that is both centralized as well as harmonized to meet current transformational objectives.
3 Factors that Influence Cloud Adoption in Financial Services Industry
The three factors that are influencing the adoption of financial services cloud and capabilities in the industry are built on these approaches:
- Data-driven Modernization
- Customer Experiences Delivery
Cloud solutions are more secured than the traditional legacy foundations, and therefore, allow organizations to look beyond their shortcomings with fast-paced capabilities using automation, AI and machine learning, and threat intelligence. A Finance Cloud delivers on all these approaches, empowering CFOs with better insights to make an informed decision for their organization. All these play out as a digital transformation roadmap fostering various AI Machine learning maturity approaches using cloud-based technology adoption models.
Customer experience (CX) management is one of the key drivers in the adoption of cloud services. it has not only transformed the way financial service providers leverage data and analysis for their various operations but also allowed them to get close to customers’ every expectation. Using powerful Financial Cloud software, users can garner sharp insights and design a personalized CX engagement tool. These could be fed into any CRM or customer data management platform to build on the ‘right moments’ as financial analysts collaborate on their Fintech roadmaps.
Financial Cloud Market in the Post-pandemic Era
The global pandemic has played a major role in the way Finance Cloud is used around the world. We are witnessing a rampant adoption of cloud solutions for financial services such as core banking, customer experience, POS, and digital payments. The aggressive stance in the fintech cloud adoption has catalyzed the cloud market that is now expected to grow from $18.4 Billion USD (in 2020) to $60 Billion USD by end of 2026. In the next 7-8 years, the financial forecasting area of the Fintech Cloud market could grow anywhere between 22% and 25% CAGR, a healthy sign for all fintech cloud providers and customers.
Fintech Cloud Market: US and Canada are Biggest Markets for Vendors
North America remains the biggest market for fintech cloud players. China, Japan, India, and Western European countries are also growing markets for the industry. In the next 5-6 years, China would most likely overtake the US market as the top Fintech Cloud adoption center, generating over $10.5 billion USD per year in 2026.
Leading Financial Cloud Software Service Providers
We have named the top 10 Cloud service vendors for the financial services industry. These are:
- Salesforce Financial Services Cloud
- Microsoft Cloud for Financial Services
- Oracle Cloud Financials
- SAP S/4HANA Cloud Finance / ERP Finance Software
- Infor CloudSuite Financials
- Temenos Banking Cloud
- Workday for Finance
- Sage Intacct
- Ramco Finance & Accounting
- IBM Cloud for Financial Services (IBM FSS Cloud)
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