Cloud computing is one of the most disruptive forces in business in 20 years, according to a study by professional services firm KPMG.
The research investigated the future of investment banking to come to this conclusion and warned that financial institutions need to move away from tradition and start embracing new technologies.
“Investment banking has always been cyclical business,” claims the report.
“Powerful forces are altering the investment banking landscape in a manner and degree never before witnessed. The ‘old ways’ of doing business need to change,” it adds.
Such forces include factors and trends affecting the sector, such as new payment models like Google Wallet and the rise of mobile.
The research however highlighted the arrival of cloud computing as a particularly disruptive technology, claiming it “continues to change the game.”
“Cloud computing is proving to be one of most disruptive forces in business in the past 20 years,” it says.
“Banks that continue to use out-dated legacy systems will find it increasingly difficult to create and launch new services, to provide access to a mobile workforce and to accommodate geographically dispersed customers and partners as well or as quickly as their competitors who are operating in the cloud,” it adds.
As a result of this, KPMG advises those in the banking industry to review operating models, the profitability of their business units and creating industrialised processes to better leverage data.
“The firms that emerge as leaders will be those able to adapt their business mix and operation models, positioning themselves to continue to grow revenues through a relentless focus on serving the changing needs of their increasingly sophisticated and demanding corporate clients,” claims the report.
In March, Royal Bank of Scotland (RBS) chief analytics officer Alan Grogan called for a dedicated UK financial services cloud.