Industry Cloud in Financial Services: Overcoming Regulatory and Data Challenges for Value Creation

Introduction

Financial services organizations—banks, insurers, and capital markets firms—face a unique set of challenges as they pursue digital transformation. Regulatory complexity, stringent compliance requirements, and the need for robust data governance have historically slowed innovation and complicated cloud adoption. Yet, the rise of Industry Cloud is changing the equation, offering a path to not only address these hurdles but also unlock new sources of value, disrupt traditional value chains, and enable new business models.

This page explores how financial services organizations can leverage Industry Cloud to move beyond functional optimization, overcome regulatory and data challenges, and drive meaningful transformation. We also highlight Publicis Sapient’s advisory-led approach and provide practical guidance for banks and insurers seeking to modernize while maintaining compliance and security.

The Imperative for Industry Cloud in Financial Services

Financial services is among the sectors with the highest adoption of Industry Cloud, and for good reason. The industry’s regulatory environment is among the most complex, with requirements for data residency, privacy, security, and auditability that often exceed those in other sectors. At the same time, the pressure to innovate—driven by digital-native challengers, evolving customer expectations, and the need for operational agility—has never been greater.

Industry Cloud offers a way forward by providing:

Pre-configured, industry-specific operating models that embed regulatory and compliance requirements.
Ecosystem platforms that enable collaboration across the value chain, from fintechs to incumbent banks and insurers.
Data governance frameworks that support secure, compliant data sharing and analytics.
Utility models that address common regulatory needs, reducing duplication and cost.

However, to realize these benefits, organizations must move beyond simply customizing horizontal cloud technologies. True Industry Cloud transformation requires a focus on value creation, new business models, and disruption of the industry value chain—not just functional optimization.

Overcoming Regulatory and Data Governance Challenges

Regulatory Complexity as a Catalyst for Cloud Innovation

Regulation is often seen as a barrier to cloud adoption, but Industry Cloud reframes it as a catalyst for innovation. By embedding compliance, security, and data governance into cloud-native platforms, financial services organizations can:

Accelerate time to value by leveraging pre-built controls and audit trails.
Reduce risk through automated policy enforcement and real-time monitoring.
Enable new business models such as banking-as-a-service, embedded finance, and data monetization, all within a compliant framework.

For example, leading Industry Cloud platforms in financial services offer utility models that address common regulatory requirements—such as anti-money laundering (AML), know your customer (KYC), and data residency—at scale. This not only reduces the burden on individual institutions but also fosters industry-wide collaboration and innovation.

Data Governance: The Foundation for Trust and Value Creation

Data is the lifeblood of financial services, but legacy architectures, siloed systems, and inconsistent governance have long hampered its effective use. Industry Cloud enables organizations to modernize their data estates by:

Integrating data across silos for a unified, 360-degree view of customers and operations.
Applying robust governance frameworks to ensure data quality, lineage, and compliance.
Enabling secure data sharing within and across organizations, unlocking new opportunities for analytics, personalization, and ecosystem collaboration.

Modern data architectures—cloud-native, API-driven, and governed by policy—are essential for supporting advanced analytics, AI, and regulatory reporting. They also lay the groundwork for new value propositions, such as real-time risk assessment, hyper-personalized products, and open banking ecosystems.

Moving Beyond Functional Optimization: Value Chain Disruption and New Business Models

While many financial institutions have focused on functional optimization—improving efficiency within specific business units—Industry Cloud enables a more ambitious agenda:

Disrupting the industry value chain by enabling new forms of collaboration and competition.
Creating new revenue streams through data monetization, marketplaces, and embedded services.
Accelerating innovation by leveraging ecosystem partners, fintechs, and cloud-native capabilities.

For example, banks can use Industry Cloud platforms to rapidly launch new digital products, onboard customers in minutes rather than days, and collaborate with fintechs to deliver integrated financial services. Insurers can leverage cloud-native data platforms to improve underwriting, personalize offerings, and streamline claims processing—all while maintaining compliance and data security.

Publicis Sapient’s Advisory-Led Approach

Publicis Sapient is recognized as a market leader in Industry Cloud for financial services, with a differentiated, advisory-led approach that focuses on value chain disruption and ecosystem enablement. Our methodology is grounded in:

Strategic alignment: We start by helping clients define the “why” of their transformation—clarifying business objectives, regulatory imperatives, and desired outcomes.
Cloud-native foundations: We guide organizations in operationalizing cloud-native transformation, ensuring that technology, data, and operating models are aligned for agility and compliance.
Ecosystem mindset: We enable clients to participate in and orchestrate industry ecosystems, leveraging platforms and partnerships to drive new value.
End-to-end execution: Our SPEED capabilities—Strategy, Product, Experience, Engineering, and Data & AI—ensure that transformation is delivered holistically, from vision to value realization.

Our experience includes building digital banks that onboard tens of thousands of SMEs in under an hour, enabling global banks to modernize their data estates for real-time analytics and compliance, and helping insurers unlock new business models through cloud-native platforms.

Practical Guidance for Financial Services Leaders

For banks and insurers seeking to modernize while maintaining compliance and security, the following principles are critical:

Reframe regulation as an enabler: Use Industry Cloud to embed compliance and governance into your operating model, turning regulatory requirements into a source of competitive advantage.
Modernize your data estate: Invest in cloud-native data architectures and governance frameworks that support both regulatory needs and business innovation.
Align technology and business objectives: Ensure that cloud transformation is driven by business outcomes, not just IT efficiency. Define clear value levers—cost, agility, new revenue—and measure progress against them.
Adopt an ecosystem mindset: Collaborate with fintechs, technology partners, and even competitors to build platforms and utilities that benefit the entire industry.
Focus on operating model transformation: Move beyond functional optimization to redesign how your organization delivers value—across the entire value chain.

Why Publicis Sapient?

Publicis Sapient brings deep financial services expertise, a proven track record in cloud-native and Industry Cloud transformation, and a commitment to advisory-led, outcome-focused engagements. Our partnerships with all major hyperscalers, investment in proprietary platforms, and experience delivering at scale make us the partner of choice for financial institutions seeking to:

Accelerate digital transformation
Overcome regulatory and data challenges
Unlock new sources of value
Build the future of financial services

Ready to Transform?

Industry Cloud is not just a technology shift—it’s a new way of thinking about value creation, compliance, and collaboration in financial services. By embracing this approach, banks and insurers can move beyond incremental change to achieve true transformation.

Contact Publicis Sapient to learn how we can help you navigate regulatory complexity, modernize your data estate, and unlock new business models with Industry Cloud.