In the previous blog in this series, we discussed how CFOs are leading the charge for banks in creating new sources of value, from new revenue streams to cost reduction opportunities.
Many of these opportunities depend upon access to the kind of data that is only available through the cloud. However, banks have been relatively late in adopting these technologies.
There are several reasons for this, including regulatory constraints, legacy systems, and concerns about the risk of uploading sensitive data to off-premise environments. In our CFO Reimagined survey, banking is the least likely sector (except for energy) to have adopted software as a service (SaaS) beyond isolated pilot programs.1
Our Cloud Readiness in Banking research finds that 43 percent of banks do not have a cloud strategy in place or have only started to implement basic cloud practices.
This may change as CFOs take on a larger role in steering banks’ digital transformation. Our CFO Reimagined survey shows that CFOs are playing a key role in digital transformation, with about three in four (77 percent) saying they are helping to drive business-wide transformation, while a similar proportion (74 percent) are using digital technology to make the enterprise more efficient.2
We see cloud as a key component of a bank’s digital journey, as cloud increases agility, accelerates the roll-out of new services, and improves security. Many advanced analytics applications require increased processing power, and banks can access this more readily via cloud solutions.
Organizational transformation has been the responsibility of the chief operating officer, but now it is becoming a shared responsibility, as transformation depends upon financial strength. With CFOs playing this important role in transformation, and the case for cloud adoption so clear, we expect finance to place even more emphasis on cloud adoption as a strategic goal.
Pivoting to a new digital model requires a new model for the finance workforce, as well. In the next blog in this series, we will look at how CFOs can foster new skills and a new culture as part of the digital transformation. In the meantime, learn more about the CFO Reimagined survey.