Global technology consultancy Infosys has released new industry analysis on the use and spending on cloud technologies within the financial services sector, revealing that banks are poised to significantly increase their cloud spending in the coming year. However, less than half of existing cloud commitments are currently being utilised.

The report, titled 'Cloud Radar: Banking Industry Report', identifies five key findings. Firstly, banks are ready to ramp up their cloud spending. Despite this, less than half of the banks have consumed the cloud funding they have committed to. Risk management does not appear to be a top priority for cloud usage. Interestingly, 44% of bank cloud decision-making is being made in isolation, suggesting a lack of coordination in cloud strategy. Lastly, infrastructure modernisation efforts are trending positively, with 75% of banks stating that cloud migration efforts are very effective or extremely effective.

The 'Cloud Radar: Banking Industry Report' builds on Infosys' previous 'Cloud Radar 2023' report, providing deeper insights through specialised research of industry executives and subject matter experts globally. The report's findings suggest that while banks are ready to increase their investment in cloud technologies, there is a significant gap in the utilisation of existing cloud commitments. This indicates a potential disconnect between investment and implementation, which could impact the effectiveness of cloud strategies within the banking sector.

The report also highlights that risk management is not a top priority for cloud usage. This could raise concerns about the security and compliance aspects of cloud adoption in a sector that is heavily regulated and deals with sensitive customer data.

Another key finding from the report is that 44% of bank cloud decision-making is being made in isolation. This suggests a lack of coordination and collaboration in cloud strategy, which could lead to inefficiencies and missed opportunities in leveraging cloud technologies.

On a positive note, the report reveals that infrastructure modernisation efforts are trending positively. A significant 75% of banks have reported that their cloud migration efforts are very effective or extremely effective. This indicates that despite some of the challenges, banks are seeing value in their cloud investments and are making progress in their digital transformation journeys.