Banks and financial services companies are increasing their investments in hybrid cloud technologies, according to the third annual Enterprise Cloud Index Report from converged infrastructure provider, Nutanix.

The pandemic is the prime mover of the market: 50 percent of the financial services companies surveyed say that COVID-19 has forced them to increase their investments in hybrid cloud.

Indeed, hybrid cloud is the only IT model showing positive growth among financial services respondents, with an anticipated increase in uptake of 39 percent over the next five years.

The sector’s key motivations for modernising its IT infrastructures are to gain greater control of IT resources (59 percent of respondents) together with the speed (58 percent), and flexibility (55 percent) needed to meet business requirements.

Forty-three percent of financial services providers plan to increase their investments in private cloud over the next year, which is 10 percent higher than the global average.

Security is driving the shift to private cloud: nearly two-thirds of financial services organisations (62 percent) ranked security, privacy, and compliance issues as the biggest concerns when running applications on public cloud platforms.

Nearly half of financial sector respondents say they have either fully deployed hyper converged infrastructures or are in the process of doing so, while 38 percent report they will be doing so within the next two years.

However, concerns remain among roughly one-third of the sector over a lack of skills in managing hybrid/converged environments, and in cloud-native technologies.

  • The findings come as the pandemic is forcing many customers to use online and mobile services for the first time, with users of Open Banking doubling last year.

However, like the global shift to working from home, 2020 figures show that these behaviours are largely an acceleration of longstanding, observable trends.

As previously reported, Statista figures show that 2020’s uptick in online/mobile banking adoption was the latest peak in an ongoing incremental increase.

Online banking penetration now stands at 76 percent of customers, up from 73 percent in 2019, with mobile phones being the preferred access devices.

In 2021, customers will increasingly look for trust, reliability, and added value from their digital services, alongside speed and convenience.

Meanwhile, the deepening economic crisis is likely to push many customers towards apps, platforms, and services that help them better manage their finances and plan for the future.