Cloud modernization is no longer a future aspiration for banks—it is the foundation upon which digital and AI transformation is built. Yet, despite widespread ambition, many banks are struggling to translate their cloud strategies into tangible business outcomes. The gap between vision and execution is holding back the industry’s ability to deliver the next generation of customer experiences, operational efficiencies, and innovation at scale. Here, we explore the state of cloud adoption in banking, the barriers to progress, and the strategies that leading banks are using to modernize their core and accelerate digital transformation—region by region.
Banks globally recognize that cloud is more than just a storage solution; it is the engine for digital transformation. However, the journey is uneven. According to recent industry surveys, only 28% of banks have transitioned more than 30% of their applications to the cloud, with the majority still in the early or intermediate stages of adoption. Ambition is high—over two-thirds of banks want at least 30% of their applications and data in the cloud within three years—but execution lags behind, especially in North America, where only 29% of banks aim to have customer-facing apps in the cloud in that timeframe.
Despite clear intent, several persistent barriers prevent banks from maximizing the benefits of cloud:
North American banks are investing in cloud to drive operational efficiency and customer experience, but progress is tempered by regulatory complexity and risk aversion. Only 60% plan to increase cloud investment in the next three years, compared to over 80% in APAC and EMEA. The focus is on compliance, risk management, and measurable ROI. Banks are moving from experimentation to scaling cloud and AI across business lines, particularly in fraud detection and process automation. However, legacy systems and fragmented strategies remain significant hurdles.
Banks in Europe, the Middle East, and Africa are leveraging cloud-native, modular platforms to accelerate innovation and respond to rapidly changing market and regulatory demands. The region’s regulatory fragmentation adds complexity, but also drives banks to develop flexible, compliant architectures. Cloud modernization is enabling real-time data access, supporting AI-driven customer experiences, and powering sustainability and financial inclusion initiatives. A major UK building society, for example, modernized its digital foundation to deliver resilient, scalable services and new AI-powered experiences while maintaining compliance.
APAC banks are among the most proactive in cloud adoption, driven by a digital-native customer base and intense competition from fintechs. 68% of APAC banks cite customer experience as a top organizational metric, and cloud is seen as the enabler for rapid product innovation and hyper-personalization. Regulatory requirements are evolving quickly, especially in markets like Singapore and Australia, where data privacy and anti-fraud measures are top of mind. Leading banks in the region have launched unified, cloud-native platforms in as little as 12 weeks, enabling real-time data, agile product development, and seamless AI integration.
Cloud modernization is the prerequisite for unlocking the full potential of AI in banking. Modern, cloud-based data platforms break down silos, enable real-time insights, and support the deployment of advanced analytics and generative AI at scale. This, in turn, allows banks to:
Banks that have modernized their core systems are already seeing measurable impact. For example, a leading Thai bank partnered with Publicis Sapient to launch a unified, cloud-native digital platform in just 12 weeks, enabling rapid product innovation and seamless customer experiences. In the UK, core modernization has reduced onboarding times and improved fraud prevention, while in Germany, Deutsche Bank’s investment in AI/ML platforms is driving operational efficiency and new business models.
Transformation leaders are distinguished by their ability to move from isolated pilots to enterprise-wide cloud and AI adoption. Key strategies include:
Cloud modernization is not a one-off project—it is a continuous journey that underpins every aspect of digital and AI transformation in banking. Banks that close the ambition-execution gap will unlock new sources of value, outpace competitors, and deliver the seamless, personalized experiences customers now expect. The future belongs to those who can combine the power of cloud, AI, and a customer-centric mindset to drive enterprise-wide change.
Ready to accelerate your cloud modernization journey? Connect with Publicis Sapient’s experts to unlock the full potential of cloud and AI for your bank—wherever you are in the world.