Generative AI has gained widespread consumer interest and acceptance over the past year and implementing this technology is now a critical consideration within many sectors. In fact, economists estimate almost $200 billion could be invested globally into generative AI technology by 2025.
Across the global financial sector, despite overall caution being observed for generative AI in the short term, it clearly has the potential to accelerate banking models and redefine how clients and financial institutions interact. As financial services firms are treading cautiously in exploring its application, many need to address a platform engineering problem before they can experiment and evaluate the full potential of this disruptive technology.
Cloud is the engine that can power generative AI ambitions for any organization. As the financial services industry begins to deploy this technology across automation, coding, customer service and a variety of other business cases, the adoption of this transformative technology necessitates extensive data volumes, substantial computing power, sophisticated security measures, and swift scalability. All proven advantages of cloud.
Social Links Navigation
Global Head of Cloud for Financial Services at Capgemini.
Financial services organizations are making significant cloud investments to support their deployment of future technologies like generative AI at scale. Recent research reveals 91% of banks and insurance companies have now initiated their cloud journey. Thats up significantly from 2020, when only 37 percent of firms had started the process.
However, cloud investments to date have tended to focus on customer-facing applications such as self-service portals, client onboarding tools, and transaction-based operations, including payments. More than 50 percent of financial services executives said their organization had not yet migrated core business applications such as risk management and compliance systems, data management, and core banking and insurance systems. Since many of these back-end systems provide critical inputs into customer-facing applications, the outcome is often a poor overall user experience.
Similarly, 80 percent cite delivery of a superior customer experience as key towards overcoming current business challenges and driving growth. Firms will need to reimagine their data, processing, and consumption strategies. Enterprises will need to modernize their platforms beyond just moving data to the cloud as-is and instead rebuild them to handle small and big data, structured and unstructured data, and finally batch and stream data. Without good data, the application of AI findings is restricted since it serves as the foundation for many cutting-edge technologies. With the current framework in place for many organizations, generative AI may magnify the problem because, to be truly effective, it must have insight into all company operations. And today, the best way to achieve that is to make all operations cloud native.
Every firms cloud journey is unique but there are common elements that must be addressed to be successful.
To start, companies must clearly identify the outcomes they want to achieve. This means creating a well-defined business strategy for cloud, and a phased roadmap that identifies priorities for implementation. From personal experience, I can tell you that every technology firm working in cloud can provide many examples of enterprises that have struggled in their journey, where the problem could be traced back to a vision statement for cloud that did not focus on business value.
Organizations must also have the right skills including those around cloud and cloud security experts to oversee the creation and operation of the platform, the migration of data to it, and the deployment of cloud-powered solutions. Otherwise, having a cloud platform will be like having a Formula 1 race car but no driver or, worse, an unskilled driver with a learners permit. If a firm does not have the required talent in-house, it must seek professionals who understand both cloud and the needs of the sector.
Importantly, when attempting to migrate to the cloud, many financial services firms face two technical roadblocks. Most organizational processes are not re-engineered for cloud, and many core systems continue to rely on legacy technologies in discrete silos. To address this, firms should engage with a strategic partner that has established links with the worlds leading cloud solutions providers and has created cloud platforms customized for their sector. Ideally, these will be composable platforms that use pre-built modular components to easily integrate front-end and back-end functions. A modular approach provides enterprises with the flexibility to develop a roadmap that prioritizes functions for migration based on their business strategy. It also enables the cloud platform to evolve, helping to future-proof the investment.
The introduction of any new technology will always be disruptive whether its generative AI, quantum computing or something nobody has yet envisioned. What we know today is that legacy architectures will need to undergo a reboot to be relevant in the generative AI era. Therefore, it makes sense to remain focused on value creation, and let that objective determine how the enterprise will leverage new technology.
At the same time, its important to recognise that becoming cloud native is essential to gain competitive advantages through generative AI and other innovations. As one industry executive shared: Without cloud, there is no future for financial services firms.
We've featured the best cloud computing service.
This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro
Read more:
Why your GenAI investments must start with optimizing cloud strategy - TechRadar
- Box for Android - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- eUKhost - eNlight Cloud Hosting! - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Cloud Computing -- Oracle is Ready to Take You There - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- What is Cloud Computing? - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Webinar - Cloud Computing: Why You Should Care - 2010-10-14 - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- What is Cloud Hosting? - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Cloud Computing Misconceptions and Benefits - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Cloud Hosting and How it is Set to Change Internet Commerce - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Awesome Cloud Computing Explained with Animation - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Rackspace Cloud Race - UK cloud hosting - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Improved Cloud Service Delivery And Hosting | IBM - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Cloud Computing Explained - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Software companies turn to Savvis for cloud hosting and other SaaS services - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Sky News Tech Report on Cloud Computing - Macquarie Telecom Interview - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- BitNami Cloud Hosting Demo - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Fully managed Cloud Computing solution using your current IT infrastructure (Closed Caption) - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- Cloud Hosting Server Provisioning - Video [Last Updated On: February 26th, 2012] [Originally Added On: February 26th, 2012]
- iomart Hosting Provides Cloud Storage and Backup for new Branding Network [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- Harris plans to stop offering remote cloud hosting [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- iomart Hosting provides cloud storage and backup for new UK branding network [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- DynamicOps Debuts "Fastest Path to Cloud" Seminar and Webinar [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- Harris Corporation to Discontinue Cyber Hosting Operation; Will Continue Providing Advanced Cyber Security and Cloud ... [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- Tutorial! Amazon Cloud Minecraft Server Hosting! - Video [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- MachPanel 4.3 - SaaS and Cloud Hosting Control Panel for Windows - Video [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- Webair Carrier Neutral Cloud: Open Network Access in the Cloud [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- iomart Hosting Takes UK Digital Media Agency Into the Cloud [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- FireHost Grows Executive Team on Heels of European Expansion; Appoints Jim Ciampaglio as Sr. Vice President of Global ... [Last Updated On: February 28th, 2012] [Originally Added On: February 28th, 2012]
- INetU Managed Hosting is SOC 2 and SOC 3 Compliant [Last Updated On: February 29th, 2012] [Originally Added On: February 29th, 2012]
- Web Host Webair Adds Carrier Neutral Cloud Services [Last Updated On: February 29th, 2012] [Originally Added On: February 29th, 2012]
- FireHost Appoints Jim Ciampaglio as Sr. Vice President of Global Sales and Marketing [Last Updated On: February 29th, 2012] [Originally Added On: February 29th, 2012]
- BitRock CEO on BitNami Cloud Hosting - Video [Last Updated On: February 29th, 2012] [Originally Added On: February 29th, 2012]
- Harris kills remote hosting service as customers shun cloud storage [Last Updated On: February 29th, 2012] [Originally Added On: February 29th, 2012]
- Understand Cloud computing in 60secs - Video [Last Updated On: February 29th, 2012] [Originally Added On: February 29th, 2012]
- Systech Integrators® Forms Strategic Relationship With Rackspace Hosting® to Offer Cloud Hosting Services for SAP® ... [Last Updated On: March 1st, 2012] [Originally Added On: March 1st, 2012]
- Dedicated & Cloud Hosting Provider Codero Names Industry Veteran Emil Sayegh, President & CEO [Last Updated On: March 1st, 2012] [Originally Added On: March 1st, 2012]
- Cloud Computing and Technology Mobility - Video [Last Updated On: March 1st, 2012] [Originally Added On: March 1st, 2012]
- Cloud Hosting Providers - Video [Last Updated On: March 3rd, 2012] [Originally Added On: March 3rd, 2012]
- Online Education Innovator Gives Virtual Internet Cloud Services an A+ [Last Updated On: March 3rd, 2012] [Originally Added On: March 3rd, 2012]
- SingleHop Introduces the Hosting Industry's First Customer Bill of Rights [Last Updated On: March 6th, 2012] [Originally Added On: March 6th, 2012]
- Cloud Services Provider Intermedia Launches Integrated Partner Program [Last Updated On: March 7th, 2012] [Originally Added On: March 7th, 2012]
- Cloud Services Provider Intermedia Now Offering Microsoft Office 365 [Last Updated On: March 7th, 2012] [Originally Added On: March 7th, 2012]
- Inside IT Cloud Computing Security - Video [Last Updated On: March 7th, 2012] [Originally Added On: March 7th, 2012]
- Lansing Cloud Host Introduces Faster ‘Storm SSD’ [Last Updated On: March 7th, 2012] [Originally Added On: March 7th, 2012]
- Leading Industry Analyst Firm positions Hosting.com as a Challenger in Managed Hosting Magic Quadrant [Last Updated On: March 8th, 2012] [Originally Added On: March 8th, 2012]
- Hosting.com Positioned as Challenger in Managed Hosting in Gartner's Magic Quadrant [Last Updated On: March 8th, 2012] [Originally Added On: March 8th, 2012]
- ServInt Announces the First Finalist for Its Inaugural Sextant Award, Recognizing the Most Effective Use of the ... [Last Updated On: March 8th, 2012] [Originally Added On: March 8th, 2012]
- Leading Analyst Firm Recognizes Savvis as a Leader in Two Cloud-Focused Magic Quadrants [Last Updated On: March 8th, 2012] [Originally Added On: March 8th, 2012]
- UK Cloud Computing Company iomart Hosting Recruits Scotland Footballers to Kick off New Campaign [Last Updated On: March 9th, 2012] [Originally Added On: March 9th, 2012]
- Rackspace Hosting Positioned as a Leader in the Leaders Quadrant of the Magic Quadrant for Managed Hosting Providers [Last Updated On: March 9th, 2012] [Originally Added On: March 9th, 2012]
- 4t Networks Offers Red Hat Enterprise Linux 6 for Cloud Hosting [Last Updated On: March 9th, 2012] [Originally Added On: March 9th, 2012]
- elchemyv2.wmv - Video [Last Updated On: March 9th, 2012] [Originally Added On: March 9th, 2012]
- Steve VanRoekel Keynote, NIST Cloud Computing Forum and Workshop IV - Video [Last Updated On: March 11th, 2012] [Originally Added On: March 11th, 2012]
- Hosting.com Enhances Backup Capabilities to Deliver Leading-Edge Data Recovery Solution for Businesses Any Size ... [Last Updated On: March 12th, 2012] [Originally Added On: March 12th, 2012]
- Online Tech Hosts Webinar on Cloud Computing in EHR/RCM Systems [Last Updated On: March 12th, 2012] [Originally Added On: March 12th, 2012]
- Hosting.com Enhances Backup & Data Recovery [Last Updated On: March 12th, 2012] [Originally Added On: March 12th, 2012]
- ServInt Introduces Its New Flex Line of High-Performance, Fully Managed Dedicated Servers [Last Updated On: March 14th, 2012] [Originally Added On: March 14th, 2012]
- Telefonica targets LatAm with business cloud [Last Updated On: March 14th, 2012] [Originally Added On: March 14th, 2012]
- TCWH Announces New InMotion Hosting Review 2012 [Last Updated On: March 14th, 2012] [Originally Added On: March 14th, 2012]
- Lokahi Expands Cloud Offering to Include Managed Security Services Through Partnership With StillSecure [Last Updated On: March 15th, 2012] [Originally Added On: March 15th, 2012]
- Eco Cloud Hosting IPv6 Ready with Web Application Firewall and Load Balancer - Video [Last Updated On: March 15th, 2012] [Originally Added On: March 15th, 2012]
- Private SharePoint Cloud Beats Other Cloud Hosting Options for Enterprises on Price, Practicality [Last Updated On: March 17th, 2012] [Originally Added On: March 17th, 2012]
- Private SharePoint Cloud Beats Other Cloud Hosting Options for Enterprises, Says AISN [Last Updated On: March 17th, 2012] [Originally Added On: March 17th, 2012]
- CaymanSecurity.com Introduces Secure Cloud Hosting Services [Last Updated On: March 19th, 2012] [Originally Added On: March 19th, 2012]
- Storm On Demand Introduces Windows Cloud Hosting [Last Updated On: March 20th, 2012] [Originally Added On: March 20th, 2012]
- Citrix Streamlines Delivery of Cloud-Hosted Apps and Desktops [Last Updated On: March 20th, 2012] [Originally Added On: March 20th, 2012]
- Cloud Computing Explained.mp4 - Video [Last Updated On: March 20th, 2012] [Originally Added On: March 20th, 2012]
- AMD Opteron 3200 Chips Target Cloud, Web Hosting [Last Updated On: March 20th, 2012] [Originally Added On: March 20th, 2012]
- Understanding the Cloud Computing Stack: SaaS, PaaS and IaaS | CloudU - Video [Last Updated On: March 21st, 2012] [Originally Added On: March 21st, 2012]
- Racemi Joins Rackspace Cloud Tools Program [Last Updated On: March 22nd, 2012] [Originally Added On: March 22nd, 2012]
- iNetRadio Adds User Music Cloud Hosting [Last Updated On: April 18th, 2012] [Originally Added On: April 18th, 2012]
- Managed Hosting Company, OneNeck IT Services, Selected by Southwest Home Builder for Cloud Services [Last Updated On: April 18th, 2012] [Originally Added On: April 18th, 2012]
- What is Cloud Hosting? - Australian Cloud Hosting Providers - Video [Last Updated On: April 18th, 2012] [Originally Added On: April 18th, 2012]
- Courion Leverages NaviSite's Enterprise Cloud to Deliver Identity and Access Management Software-as-a-Service [Last Updated On: April 24th, 2012] [Originally Added On: April 24th, 2012]
- TLD Solutions Launches Next Generation "4GH" Web Hosting [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- ElasticHosts unveils simple cloud web hosting for SMEs [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Rackspace Hosting 1Q net income up on higher sales [Last Updated On: May 8th, 2012] [Originally Added On: May 8th, 2012]
- Infinitely Virtual Announces Support for Microsoft SQL Server 2012, Providing Cloud-Ready Hosting with Mission ... [Last Updated On: May 8th, 2012] [Originally Added On: May 8th, 2012]
- Kore Domains Launches Revolutionary New "4GH" Web Hosting Solution [Last Updated On: May 8th, 2012] [Originally Added On: May 8th, 2012]
- 4GH Web Hosting Europa Launches 4GH Cloud Web Hosting Solution in European Data Center [Last Updated On: May 10th, 2012] [Originally Added On: May 10th, 2012]
- Hughes Cloud Services & Hosting Showcases Its Comprehensive Enterprise IT Offering At ... [Last Updated On: May 12th, 2012] [Originally Added On: May 12th, 2012]