A study by EY also revealed an increase in the intention to implement this technology, driven by the goal of digitizing products and services.

The cloud continues to be one of the main enablers of change in the Chilean financial industry, and the number of companies adopting a transformational cloud strategy is steadily increasing. This strategy aims to support the business in achieving its strategic objectives, growing from 31% in 2023 to 40% in 2024.

These are some of the findings from the study “How the Financial Industry is Adopting Cloud,” conducted by EY. It also identifies an increase in the intention to use this technology: 33% of companies plan to migrate more than 75% of their application portfolio over the next three years. The three main factors driving cloud adoption in Chile are the digitalization of products and services (87%), improvement in business resilience/agility (53%), and enhancement of customer experience (53%). Meanwhile, the biggest challenge for adoption is the nature of legacy systems. However, “there has been a reduction in this paradigm from 88% to 73%, which can be attributed to the integration of artificial intelligence (AI) as an enabler of application modernization. It’s a trend that is seen as a catalyst for change,” explains Gloria Coll, Senior Cloud Manager at EY Chile.

33% of companies plan to migrate more than 75% of their application portfolio over the next three years.

On the other hand, resistance to change increased from 6% in 2023 to 33% in 2024, highlighting the need to “implement support strategies that facilitate the development of knowledge and skills in people, allowing them to manage and operate technology with confidence and without fear,” explains the expert.

Regarding concerns, security management increased from 13% to 20% in the past year and is expected to keep rising as adoption grows. This is one of the most relevant aspects of the shift to the cloud across all industries, but especially in the financial sector. “Protecting confidentiality, ensuring continuity, and implementing robust controls are key factors that must be considered in the adoption of this technology,” states Coll. In this regard, Néstor Strube, General Manager of ITQ Latam, highlights the advantages cloud offers in terms of security, as it “automates and manages more efficiently and at a larger scale. Leading cloud providers constantly invest in cutting-edge technologies such as AI. This enhances monitoring, identification, and response to threats and incidents. Cloud provides a comprehensive cybersecurity infrastructure and design, with layered security that covers zero-trust network architecture, access, identities, multi-factor authentication, and encryption. Cloud cybersecurity offers centralization, greater visibility, and attractive costs.” He notes that there are five key measures for operating in cloud environments. First, “segment specific risks for each part of the ecosystem and its associated services.” Second, choose a reliable cloud provider with proven experience. Third, implement specific cloud security measures, ensuring constant monitoring, periodically evaluating, and updating technological platforms and policies. Fourth, have a rapid recovery plan in place with backup copies. Finally, he emphasizes training and creating a culture to operate in cloud environments, comply with current regulations, and promote these practices from top management within companies.