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Research
Sovereign Cloud in Financial Services
How European financial institutions are realigning their cloud strategy amid tightening regulation, geopolitics and sovereignty considerations. Key findings from the third edition of the "Cloud in Financial Services" report.
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Focus on sovereignty
Reply has been supporting the cloud transformation of the European financial sector for years, and with this third edition of the “Cloud in Financial Services” report, it provides an overview at a time when the rules of the game are fundamentally shifting. Financial institutions are increasingly moving even business-critical applications to the cloud.
But as usage grows, so does dependence on U.S. hyperscalers, and the issue of digital sovereignty gains greater significance with every regulatory initiative. The report examines how institutions are navigating this tension. Where are the biggest blind spots? And which strategies actually help?
Project experience, industry voices & targeted analysis
To answer these questions, the report draws on the evaluation of more than 1,500 cloud projects in the financial sector, a survey of 60 institutions across the EU and the UK, and C-level interviews with decision-makers in banking, insurance and asset management. The data analysis is complemented by strategic perspectives from industry leaders, including BNP Paribas, AXA and Union Investment.
Five findings Europe's financial industry cannot afford to ignore. Discover the key results of our report.
Cloud infrastructure is strategically indispensable.
Despite rising costs and tighter regulatory frameworks, cloud remains essential when assessed holistically. It enables scalability, innovation (especially in AI), long-term viability, and compliance with regulatory requirements such as resilience and sovereignty, even for critical applications.
Sovereignty is both a right and a responsibility.
48 per cent of surveyed institutions rank sovereignty among their top three challenges – more than double the figure in 2023. While regulatory pressure is accelerating the topic, financial institutions also have a vested interest in proactively shaping and supporting European sovereign cloud solutions.
Resilience is a critical selection criterion.
Resilience is playing an increasingly central role in selecting cloud providers. However, the feasibility of exit strategies under extreme stress scenarios is still not receiving sufficient attention.
In large institutions, a future-proof multi-cloud strategy is often deemed essential.
Successful approaches combine international hyperscalers with local providers. Key success factors include technological flexibility and the development of strong in-house expertise.
Smaller institutions can turn scale into an advantage by switching to European providers.
Smaller institutions have fewer resources and lower cloud maturity. Yet precisely for that reason, the barriers to adopting European providers are lower – and regulators reward early movers. An apparent weakness can become a strategic strength.
The full study provides all the data, strategic recommendations and assessments from leading decision-makers.
Find out where your institution stands relative to the industry and which steps make the difference now.
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