The banking industry is at the very beginning of a massive shift towards cloud customer-facing and internal applications. Shifting to this new model holds challenges for banks to develop and manage services, but it also presents opportunities for cost savings and increased flexibility,
Banks are making the shift over to cloud where they can as the technologies behind cloud become more robust and secure. Around 71% of banking executives stated that they planned to invest in cloud, according to a survey by PricewaterhouseCoopers in late 2013. This was four times more than in the previous year. This transition to the cloud has come at a slower rate for financial services and banking organizations than for other industries, as can be expected from an industry where data security and compliance requirements are particularly rigorous. The impetus driving this shift is largely due to industry pressure to consolidate IT costs -- in fact, Gartner has forecasted that, by 2016, poor return on equity will drive more than 60% of banks worldwide to process the majority of their transactions in the cloud.