Banks that adopt cloud technologies can unlock significant value and gain competitive advantages.

1. Webinar
Cloud value in cash
management
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2. McKinsey & Company 2
Myths Realities
3 Business value of speed, agility, innovation, and scalability swamps
potential IT cost reductions
The main value of cloud business cases is IT cost reduction
4 Almost all off-premises vulnerabilities result from misconfiguration—
security as code is required to enable protection and agility
The security I can set up and control in my own data centers is
superior to the security on cloud
6 An effective infrastructure organization is even more important off-
premises but requires an agile, product-based model
Moving to cloud eliminates the need for an
infrastructure organization
7 Transitioning high-impact business domains allows for “local critical
mass” in achieving agility
The most effective way to transition to cloud is to focus either on
applications or on entire data centers
2
A range of options exist between lift and shift and complete
refactoring, with optimized IaaS and containerization potentially
attractive
To move to cloud, you must either lift and shift applications as
they are today or refactor them entirely
5 Current architectural choices (eg, backhauling) can increase latency
off-premises, but different choices yield better results
There is greater latency among applications running on cloud
providers’ networks than there is on in-house networks
1 Cloud computing costs more than in-house computing
Properly architected applications can be less expensive off-premises,
but that requires managing ROI carefully
McKinsey Academy Virtual Exchange
The myths and realities of cloud adoption

3. McKinsey & Company 3
Source: Independent third-party research data (OmnicomGroup and Known), industry and McKinsey expert interviews, McKinsey D2020 IT cost benchmarking, McKinsey Global Institute research, team
analysis
1. Rejuvenate
$430bn
2. Innovate
$770bn
3. Pioneer
Additional
opportunity
Early adoption of cloud technology
Embracing culture of experimentation with low cost of failure
and gaining experience in cloud technology, which is an enabler
for early adoption of future tech such as quantum computing,
AR/VR/MR (mixed reality), blockchain, and 3D/4D printing
IT cost optimization
Cost optimization of application
development and maintenance and IT
infrastructure
Risk reduction
Improved business resilience of the
organization
Core operations digitization
Implementation of latest
technological/digitization achievements
in core operations
Innovation-driven growth
Business growth from new and enhanced use
cases in analytics, IoT, and automation
Accelerated product development
Enhancement of operating-model agility, ease of
cloud configuration, and democratized access to
computational power
Hyper-scalability
Access to instant on-demand elasticity in
compute and storage capacity to scale across
customer segments, geographies, and channels
There is an estimated $1 trillion in EBITDA value from cloud
adoption across the Fortune 500.

4. McKinsey & Company 4
Innovation-driven
growth
Cost savings in
business operations
Total
70
170
100–190
50–160
310–610
Value not
estimated1
700–1,200
Low case High case
Impact of cloud use cases and improvements,
Estimated 2030 EBITDA run-rate impact, $ bn
Note: Cost of implementation is not included in calculation.
1. Premature to estimate value in 2030.
Value driver
2 Improved business resilience
3
1 Cost optimization of application development and maintenance and
IT Infrastructure
Implementation of latest technological/digitization achievements in
core operations via analytics, IoT, and automation use cases
7 Adopting emerging technologies by gaining experience in
experimentation at low cost
Growth from new and enhanced use cases
6 Leveraging public-cloud hyper-scalability
5 Adopting accelerated product development
4
Source: Independent third-party research data (OmnicomGroup and Known), industry and McKinsey expert interviews, McKinsey D2020 IT cost benchmarking, McKinsey Global Institute research, team
analysis
II. Innovate
I. Rejuvenate
III. Pioneer
360–770
340-–430
Almost all value comes from business improvement, acceleration,
and innovation.

5. McKinsey & Company 5
Function Domain Sanitized use-case description Lever
Marketing and sales Customer-service management
Automating transaction calls using voice-recognition algorithms and
cognitive agents
Cost
Risk Fraud and debt analytics
Enhancing predictive power of traditional early-warning systems in
order to reduce cost of credit
Cost
Marketing and sales Churn reduction
Protecting customer loyalty through holistic retention programs and
dedicated execution capabilities
Revenue
Marketing and sales Customer-service management
Routing call-center cases based on multimodal data to increase
customer satisfaction and reduce handling costs
Cost
Marketing and sales Customer-service management
Real-time voice-recognition algorithms to redirect distressed
customer calls to experienced handlers for retention offers
Cost
Marketing and sales
Customer acquisition / lead
generation
New-client acquisitions by applying targeted digital marketing Revenue
Corporate business
functions
Analytics-driven hiring and
retention
Identifying key drivers of employee performance and spotting
employees with high likelihood of success
Cost
Marketing and sales Pricing and promotion
Boosting fee-based revenues to detect inconsistent practices and
poor pricing control
Revenue
Corporate business
functions
Analytics-driven accounting and
IT
Intelligent document recognition to automate document sorting and
extraction process
Cost
Select banking use cases