FIX and REPLACE 62% of financial services leaders expect their cloud investments to increase revenue over the next two years

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LONDON & NEW YORK–(BUSINESS WIRE)–Please replace the version dated February 16, 2022 with the following corrected version due to multiple revisions.

The updated version reads as follows:

62% OF FINANCIAL SERVICES LEADERS EXPECT THEIR CLOUD INVESTMENTS TO INCREASE REVENUES OVER THE NEXT TWO YEARS

Capco and Wipro’s Global Cloud Services Study FullStride reveals that financial services companies’ cloud goals are focused on business and revenue growth.

Financial services leaders cite increasing future revenue (62%) and improving future profitability (52%) as top reasons for deploying cloud technologies, according to new financial services research from Capco , a Wipro company, the global technology and management consulting firm, and Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting and business process services.

In the report – titled The cloud transformation of financial services – Cloud experts from Capco and Wipro take a closer look at financial services data collected in the Wipro 2021 Global Survey and Report – Making Business Thrive: A Cloud Leader Roadmap for Achieving 10x ROI. The report identifies key upcoming trends and opportunities and offers insights to enable financial services institutions (FSIs) to become cloud leaders. Wipro’s FullStride Cloud Services study incorporated 1,300 responses from senior executives and key decision makers from 11 industries, 26% of which came from financial services, specifically banking, insurance and capital markets, including wealth advisory and asset management companies.

Looking exclusively at the financial services and insurance-related dataset in the main study, the new findings include:

1. The three main impacts of COVID on FSI operations:

  • Increased priority given to cloud as a means to improve customer experience (70% of banks, 63% of capital market firms, 55% of insurers)

  • Increased recognition of the importance of using the cloud to make processes more efficient and agile (54% of banks, 67% of capital market firms, 59% of insurers)

  • Increased willingness of institutions to invest in the cloud (49% of banks, 52% of capital market firms, 45% of insurers).

2. ISPs have begun their journey towards full digital cloud implementation and plan to move forward to achieve this vision:

  • Cloud spending by banks averaged $36 million in 2021, rising to $41 million for capital markets firms and $55 million for insurance companies

  • Currently, companies run an average of 38% of their business applications through the cloud, and they expect that percentage to increase to 55% in two years.

3. Cloud investments have paid off for ISPs in terms of revenue and bottom line:

  • Improved profitability (62% of banks, 55% of capital market firms, 59% of insurers)

  • Increased revenue (55% from banks, 50% from capital market firms, 46% from insurers)

  • Increased market share/expanded customer base (55% banks, 55% capital market firms, 38% insurers)

  • Lower costs (50% of banks, 51% of capital market firms, 40% of insurers).

4. Over the next two years, financial services leaders expect to make their largest cloud investments in:

5. The top three barriers to cloud implementation identified by FSIs were:

  • Banks – Difficulty choosing the best technological options (48%); uncertain return on investment and use cases (45%); and lack of company-wide strategy and roadmap (42%)
  • Capital markets companies – Lack of company-wide strategy and roadmap (48%); difficulty choosing the best technology options (42%); and uncertain return on investment and use cases (41%)
  • Insurance companies – Lack of company-wide strategy and roadmap (42%); inadequate IT and data systems (40%); and difficulty choosing the best technology options (39%).

Peter Kennedy, Partner and Head of Cloud at Capco, said“We believe that financial services companies often fail to consider total costs when measuring return on investment (ROI) in the cloud. Only 40% cited benefits from reduced non-IT costs, and even fewer measured reduced carbon footprint, faster time to market, or improved productivity. »

Commenting on perceived barriers to cloud implementation, Kennedy added, “Roadmaps that mapped out a digital journey for the entire organization emerged slowly, if at all. of transformation, it is crucial to develop an enterprise-wide cloud strategy and roadmap that details technology choices, governance metrics, and spending priorities, and that moderates other potential battlegrounds that may arise. dilute implementation. He also noted that the survey results reinforce that training, recruitment and retention are core competencies that require careful and early planning or risk impeding the transition from an institution to the cloud: as well as a need for training were serious barriers to successful cloud implementations.”

Download Capco’s research report The cloud transformation of financial services to discover practical, actionable recommendations for financial services leaders on how to design and accelerate a successful journey to the cloud.

About Capco, a Wipro Company

Capco is a global technology and management consulting firm specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising more than 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unparalleled industry knowledge to accelerate digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity comes to life through its innovation labs, award-winning BYAW culture and diverse talent. To learn more, visit www.capco.com or follow us on Twitter, Facebook, YouTube, LinkedIn Instagram and Xing.

About Wipro

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and succeed. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have more than 220,000 employees dedicated to serving customers on six continents. Together, we discover ideas and connect the dots to build a better and bolder future.

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