{"id":26260,"date":"2025-09-18T17:13:39","date_gmt":"2025-09-18T14:13:39","guid":{"rendered":"https:\/\/www.intellectsoft.net\/blog\/?p=26260"},"modified":"2026-06-05T16:49:36","modified_gmt":"2026-06-05T13:49:36","slug":"hybrid-cloud-in-banking","status":"publish","type":"post","link":"https:\/\/www.intellectsoft.net\/blog\/hybrid-cloud-in-banking\/","title":{"rendered":"Banking on the Hybrid Cloud: What Big Banks Can Learn from Neobanks"},"content":{"rendered":"

Ever since neobanks appeared on the scene, big banks have had to come to terms with a new competitor. Neobanks are glorified mobile-first banks that have a far more agile approach to customer service, allowing them to offer a much more personalized touch to their clients\u2019 query resolution. For big banks, new strategic changes such as embracing a hybrid cloud model as an agile IT backbone shift are imperative. They now need to capture the most agile, cloud-empowered banking services that neobanks offer.\u00a0<\/span><\/p>\n

In this article, we will discuss the fundamentals of <\/span>hybrid cloud banking<\/span> and assess its adoption patterns and challenges. We will also explain the major insights that traditional banks need to adopt from digitally savvy banks to thrive in the changing environment.<\/span><\/p>\n

What Is a Hybrid Cloud for Baking?<\/strong><\/h2>\n

A bank hybrid cloud is an IT architecture that integrates a private cloud (on-premises, proprietary infrastructure) with a public cloud (a third-party-provided service). <\/b>The two disparate environments are structured to interconnect in a manner that data and applications are not isolated in individual silos.\u00a0<\/span><\/p>\n

Why is this important for modern banks?<\/b><\/p>\n

Financial institutions <\/span>struggle to gain control and ensure security<\/b> for sensitive data and core operations. Meanwhile, they also <\/span>seek to reach flexibility, scalability, and cost efficiency <\/b>in a public cloud for non-sensitive workloads and innovative applications.<\/span><\/p>\n

The <\/b>hybrid cloud banking<\/b> model enables financial institutions to strike a balance between private and public clouds.<\/b> For instance, a bank can store its customers’ financial records on a hybrid-private cloud to comply with data residency regulations. Simultaneously, it can run customer-facing mobile applications and other analytics on public cloud servers. This would allow the bank to integrate mobile applications with the private cloud in a seamless manner.<\/span><\/p>\n

Now, you might wonder what is digital banking and how it relates to cloud computing? See, <\/span>digital transformation in banking industry<\/span><\/a> has resulted in the appearance of online platforms like mobile apps and websites that allow financial service users to conduct transfers, pay bills, and apply for loans from anywhere and anytime. That is a digital bank, and it functions on cloud computing technology.<\/span><\/p>\n

Hybrid Cloud Adoption in Banking<\/strong><\/h2>\n

Market analysis estimates that the cloud finance industry will be worth over USD 51 billion in 2026, with projections to reach roughly USD 217 billion by 2034. This denotes a 19.78% CAGR over the next 9 years.<\/span><\/p>\n

In 2025, an LSEG (London Stock Exchange Group) <\/span>industry survey<\/span><\/a> stated that <\/span>82% of orgs already function on a multi-cloud or hybrid-cloud basis<\/b>. This implies that the transition to flexible cloud infrastructure is ongoing.\u00a0<\/span><\/p>\n

Banks are no longer in the exploratory phase. They are increasing investment. The same report states that <\/span>87% of financial services firms report that of all cloud expenditures in the last two years, over a quarter fueled spending focusing on scalability, revenue growth, and AI enablement<\/b>.<\/span><\/p>\n

\"Finance<\/p>\n

How Traditional Banks Can Learn From Neobanks<\/strong>\u00a0\u00a0<\/span><\/h2>\n

New entrants in the market, such as Revolt, Nubank, Monzo<\/i>, and other digital-only companies, have completely altered the banking industry trends<\/a> with their rapid growth and technology-focused strategies. With these changes, existing banking giants such as JPMorgan Chase, HSBC, and BNP Paribas <\/i>have something new to observe and rethink their strategies. <\/span><\/p>\n

Let\u2019s summarize the most important things traditional banks can learn from neobanks.\u00a0\u00a0<\/strong><\/p>\n

Agility and Reaching Market Quicker<\/strong><\/h3>\n

Revamped agile strategies have enabled existing banks to break free from the historically long release cycles and siloed IT structures they endured in past decades.<\/span><\/p>\n

For example, JPMorgan Chase devoted resources to Agile and DevOps practices to improve their software delivery processes, achieving over <\/span>a 70% increase in code deployment<\/span><\/a> within two years and greatly improving development efficiency.\u00a0<\/span><\/p>\n

Other large banks, like ING, have implemented agile transformations that seek to diversify into smaller cross-functional teams that are more easily able to adapt. The focus for these banks can be summarized as <\/span>adopting the agility of<\/b> hybrid cloud in banking, whic<\/b>h is:<\/b><\/p>\n