Blogs

Harnessing AI in Cloud for Financial Services: Powered by Microsoft Azure

Written by Akhil Kohli | Jan 29, 2025 7:26:46 AM

Achieving cloud maturity is essential for effective AI deployment in financial services. Microsoft Azure and Coforge help organizations modernize infrastructure, enhance productivity, and improve customer experiences. Key trends include personalized banking, fraud detection, and automated customer service. By leveraging AI and cloud technologies, financial institutions can stay competitive, reduce costs, and drive innovation.

 

Enhancing Cloud Maturity for AI Deployment

Achieving cloud maturity is crucial for deploying AI technologies effectively, addressing both immediate challenges and long-term business goals. Microsoft Azure is one of the top platforms for leveraging data to boost productivity, quality, and process efficiency.

AI Advancements in Financial Services

As per recently publish report by Microsoft, the financial services industry is making significant strides in AI readiness, with 40% of organizations currently in the "implementing" phase. Research shows that 70% of these organizations use big data analytics, and 27% have piloted AI applications or AI-assisted solutions. Additionally, over half are investing in AI projects, providing specialized training, and promoting internal knowledge sharing. This dedication has enabled 27% of firms to reach the "scaling" and "realizing" stages, exceeding the 25% industry benchmark.

The growth of AI in financial services is expected to be substantial in 2026 and beyond. Here are some key projections:

  • Gartner : AI in financial services is expected to see significant growth, with spending on AI-optimized servers projected to reach $202 billion in 2025
  • McKinsey: Generative AI could add between $200 billion and $340 billion annually to the global banking sector, representing 2.8% to 4.7% of total industry revenues
  • Deloitte: The deployment of AI agents is expected to grow, with 50% of enterprises using generative AI anticipated to have AI agents by 2027

Key Trends and Opportunities in Financial Services

  • Personalized Banking: AI enables financial institutions to offer personalized banking experiences. By analysing customer data, banks can provide tailored financial advice, product recommendations, and personalized marketing.
  • Fraud Detection and Prevention: AI and machine learning algorithms are becoming increasingly sophisticated in detecting fraudulent activities. These technologies can analyze vast amounts of transaction data in real-time to identify unusual patterns and flag potential fraud.
  • Automated Customer Service: AI-powered chatbots and virtual assistants are improving customer service by providing instant responses to customer inquiries, handling routine tasks, and even assisting with complex issues.
  • Risk Management: AI is enhancing risk management by providing more accurate risk assessments and predictive analytics. This helps financial institutions make better-informed decisions and mitigate potential risks.
  • Regulatory Compliance: AI is helping financial institutions comply with regulatory requirements by automating compliance processes, monitoring transactions for suspicious activities, and ensuring adherence to regulations.

How to Approach AI Deployment in Financial Services

Coforge and Microsoft are committed to delivering the best experience to support AI projects. Financial services organizations are increasingly relying on AI to build a robust foundation for growth. Modernizing infrastructure with cloud-based solutions accelerates time-to-market, keeping institutions competitive. AI and machine learning provide deeper data insights and better market responsiveness, reducing operational costs and enhancing customer experience.

Coforge offers comprehensive assessment services to help financial organizations evaluate their current state, identify gaps, and plan next steps for AI journey:

  • Assess Current State: Determine how well AI objectives align with business priorities and evaluate data access and security measures.
  • Identify Gaps: Focus on areas needing attention, such as business strategy, AI governance principles, or team expertise.
  • Plan Next Steps: Based on assessment scores, categorize readiness into one of five stages: exploring, planning, implementing, scaling, or realizing.

After assessing readiness and gathering insights, outline a plan to address gaps and advance through the stages of cloud AI maturity. Coforge can help to chart the Path Forward for AI Initiatives

Modernizing infrastructure - Modernizing infrastructure with cloud-based solutions is a game-changer for financial institutions. It accelerates time-to-market, ensuring that organizations remain competitive in a fast-paced industry.AI and machine learning provide deeper data insights and better market responsiveness, reducing operational costs and improving customer experience.

Start with a Single Use Case

To ensure AI initiatives progress beyond the proof-of-concept stage, identify a clear business objective and focus efforts there. Prioritize projects that provide financial value and align with business goals, such as automating mundane tasks with AI-automated content and chat assistance using Azure OpenAI Service and Azure AI studio.

To advance AI implementation, financial organizations must prioritize establishing a robust cloud infrastructure designed to support large-scale AI models. While data fuels AI, the cloud infrastructure serves as the engine. The computing power, analytics capabilities, storage, reliability, security, and performance provided by a cloud platform are crucial for AI projects to deliver value and move beyond the proof-of-concept phase.

Coforge's Cloud and Infrastructure Services

Coforge's cloud and infrastructure services run business-critical systems and operations for global customers, ensuring security and scalability across public, private, and hybrid clouds. We help clients reimagine and modernize their IT infrastructure strategy towards a flexible cloud environment that delivers fast and efficient business value while providing a superior experience for employees.

With a team of over 3,500 employees, Coforge supports 150+ customers across various verticals, including banking, insurance, retail, and manufacturing. Our engagement ranges from complete IT outsourcing to managed services, fixed-price outcome-based projects, and resource augmentation. We leverage industry-leading tools, assessment frameworks, and proven accelerators to assess IT maturity levels and unlock business value from the "Journey to Cloud."

Coforge Banking and Financial Services

Our deep domain expertise allows us to provide strategic insights and practical guidance. With over 30 years of experience, we bring cutting-edge solutions to the table. Our process-driven approach ensures efficient execution and tangible outcomes.

Our team of 7,000 techno-domain experts have delivered remarkable results for both established and underserved segments in the industry. Our clients include Central Banks, Global and Regional Banks, Neo Banks, Fintechs, Global Investment Banks, Wealth & Asset Managers, and Regulators.

Conclusion

In conclusion, the journey to cloud maturity and AI deployment is a transformative process for financial services organizations. By leveraging platforms like Microsoft Azure and partnering with experts like Coforge, institutions can modernize their infrastructure, harness the power of AI, and stay competitive in an ever-evolving industry. The future of financial services lies in the successful integration of AI and cloud technologies, driving innovation, efficiency, and enhanced customer experiences.