In 2022, the global market for financial clouds was valued at US$36.9 billion. In 2023, there will be a 42 billion dollar demand for banking cloud services. Finance cloud is predicted to increase at an 11.8% CAGR between 2023 and 2033, reaching US$ 128 billion by that time.
A major factor driving the market expansion for finance clouds has been the growing emphasis on digital financial transactions worldwide. Over the course of the projected period, the increased use of digital banking and remote working is also anticipated to propel market expansion. Furthermore, the majority of financial institutions have had to quickly implement remote working in recent years, which has resulted in a sharp increase in cloud-based infrastructure for business purposes.
The worldwide finance cloud market is mostly driven by financial businesses’ increasing need for cloud computing and their increased demands for operational efficiency and transparency in business operations. Additionally, because cloud solutions offer a number of useful advantages including eliminating regular updates, reducing costs, and enhancing company flexibility, their popularity among small and medium-sized enterprises is only expected to increase. Thus, these elements play a significant role in the growth of the worldwide market for financial cloud platforms. However, issues with data security, protection, and higher investment and maintenance costs are limiting the growth of the financial cloud industry.
On the other hand, emerging markets provide substantial potential for finance cloud providers to broaden and enhance their services, especially in developing nations like China, South Korea, Japan, India, and Japan. These nations need increasingly substantial financial resources since they are approaching the threshold of development. As a result, it is projected that the need for affordable solutions would offer profitable opportunities for market expansion. Additionally, the shift to digitalized corporate processes is happening quickly for banks, financial institutions, and other financing companies. Consequently, there has been a significant improvement in the acceptance and deployment of cloud technology, which is expected to generate new opportunities for the market in the next years.
Financial organisations can lower their capital expenditures thanks to financial cloud computing. It happens by getting rid of the need for a lot of on-premises infrastructure. Alternatively, companies can opt to pay for their resources on a monthly basis, which enables them to expand their computing power in an economical manner. This strategy lowers initial costs dramatically and is propelling the market expansion for financial clouds.
There are several local and international competitors in the financial cloud sector, which is positively competitive. In order to grow their companies, the major players in the global finance cloud market are implementing tactics including alliances and partnerships. In order to incorporate new technology into their services and create progressive derivatives, cloud providers are also significantly investing research and development.
Google and Brillio joined in August 2023 to include generative AI into Google’s data, engineering, and customer experience offerings. Financial services firms may improve the way they analyse loan applications, approve contact executives, provide sufficient guidance on investments, and provide more useful portfolio summaries.
Amazon Web Services, Inc. and NASDAQ announced a multi-year cooperation in November 2021. The collaboration intends to develop a cutting-edge cloud-based infrastructure for international financial markets. The objective is to develop a more robust, scalable, and universally accessible market infrastructure. The partnership with NASDAQ will provide a market architecture that is truly cloud-based.
Consumer electronics will probably continue to be the top end-use industry across verticals in APAC, EMEA, and the Americas, which reflects his extensive expertise in market research and project management.
He is a fervent supporter of innovation-based solutions and places a premium on tailored solutions that address the needs of individual clients. He was just named the ET Inspiring Leaders Awards 2022’s “Global Icon in Business Consulting” for his imaginative approach and insight.