LSEG Global Cloud Survey: Financial Services Firms Embrace Cloud To Drive Competitiveness

Financial services firms around the world are accelerating their adoption of cloud technologies to enhance agility, resilience, and innovation, not merely to reduce costs, according to new research conducted by LSEG (London Stock Exchange Group).

The global survey of 453 financial services executives reveals that 87% of firms have increased their investment in cloud over the past two years, with a growing emphasis on strategic outcomes such as scalability, revenue growth, and AI enablement.

The research shows that 82% of firms now operate with either a multi-cloud or hybrid-cloud strategy, reflecting a shift toward flexibility and risk diversification. However, this evolution is not without its challenges. 84% of respondents have had to adjust their cloud strategies in response to regulatory frameworks such as the EU’s Digital Operational Resilience Act (DORA) and General Data Protection Regulation (GDPR).

Stuart Brown, Group Head of Data & Feeds, LSEG:

“The results of our survey show that adopting cloud is no longer a technology or engineering led decision; it is a key business imperative. Companies are increasingly driving meaningful value from cloud, improving operational resilience, and preparing for the next wave of innovation. Over the next three years, that innovation will be driven by AI and machine learning, with financial institutions increasingly using cloud to power fraud detection, risk management, data analytics and generative AI.”

Security remains a top concern. Nearly half of respondents (47%) cite the sophistication of cyberattacks as their primary worry, followed closely by concerns around data privacy and breaches. Despite this, 92% say operational resilience is a critical or very important factor when selecting a cloud provider underscoring the importance of trust and reliability in cloud partnerships.

Firms are seeing tangible benefits from cloud adoption. 54% of respondents report that they have migrated and are already seeing value, particularly in areas like risk management, customer engagement, and enterprise data access. For instance, 83% of firms using cloud for risk management have already completed migration, the highest among all use cases.

Interestingly, ROI is increasingly measured by strategic outcomes: 51% assess cloud success by scalability, 47% by revenue growth, and 47% by improved security and resilience. Only 34% prioritize immediate cost savings signaling a shift in how cloud value is perceived.

That said, 61% of firms still report reduced IT infrastructure costs, especially in regions like EMEA and APAC, where multi-cloud strategies are more prevalent due to regulatory complexity.

The survey found that 91% of firms are either already using or planning to use cloud services for AI initiatives within the next 12 months. Generative AI (60%), fraud detection (50%), and risk management (50%) are the top use cases. Moreover, 84% of respondents say their organizations are somewhat or very advanced in AI adoption, with investment firms leading the way.

As firms look to the future, many are also reconsidering their cloud service models. While SaaS remains dominant today (43%), there is growing interest in Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), a sign that firms may be preparing to build more bespoke applications in-house.

Click here to view the full LSEG Global Cloud Survey.