Banks and financial services companies in the Asia-Pacific region have started to accelerate their use of cloud computing and data analytics.

Indeed, APAC financial institutions are transforming their businesses through new customers offerings empowered by data analytics, artificial intelligence and advanced back-office digitalisation. These rapid transformations were enabled by cloud computing as it has increased their ability to transfer a significant amount of financial activity to the online environment.

The shift is expected to become the new normal as public cloud spending by financial institutions in the Asia-Pacific region will reach $18.1bn in 2024 according to IDC. Similarly, 85% of the leading banks in the region will curate an infrastructure strategy by 2023 through coalescing on-premise or dedicated private clouds and multiple public clouds.

However, APAC financial institutions are still facing many challenges in their cloud journey as they have to modernise their legacy infrastructure and are trapped in multiple data silos. It was recommended that they approach cloud suppliers to solve their infrastructure issues from the start.

Another problem might also be the cost of moving to the cloud. Large companies that have a high dependency on legacy IT will have higher costs of migrating to the cloud.