Suresh Vaghjiani: How Is Cloud Processing Solving the Low-Margin Challenge in APAC?

Why It Matters

Cloud‑based processing lowers operating costs dramatically, allowing banks in low‑margin APAC markets to achieve profitability and compete as the region liberalizes.

Key Takeaways

• APAC banking sector opening to foreign competition and new licenses.
• European solutions too costly for low‑margin Asian markets.
• Cloud9 offers pay‑as‑you‑go processing to cut operating costs.
• Cloud processing reduces infrastructure spend by up to 90%.
• Volume‑driven profitability requires efficient, scalable technology platforms for banks.

Summary

The video discusses how cloud‑based processing is addressing the chronic low‑margin environment facing banks across the Asia‑Pacific region, especially as governments relax protectionist policies and grant new banking licences.

Suresh Vaghjiani highlights that traditional European software solutions are prohibitively expensive for these markets, where profitability hinges on high volume and cost efficiency. Cloud9’s pay‑as‑you‑go model lets institutions only pay for actual usage, eliminating the need for costly peak‑capacity infrastructure.

He likens the model to a prepaid phone plan, noting that cloud processing can be launched with up to a 90% cost reduction compared with legacy on‑premise systems. This dramatic savings enables newer entrants to compete effectively against incumbents.

The implication is clear: banks that adopt cloud processing can achieve sustainable margins, accelerate market entry, and better serve a rapidly opening APAC banking landscape.

Original Description

The APAC financial region is undergoing a massive transformation as governments move away from protective policies toward a new era of openness. In this interview from Money 20/20 Asia, Suresh Vaghjiani, CEO and Founder of CLOWD9, discusses how this shift is creating a "race to enter" markets like Thailand, while simultaneously highlighting the need for extreme operational efficiency.

Vaghjiani explains that because the region operates on very low margins, traditional high-cost infrastructure is no longer sustainable. He details how CLOWD9 is helping clients respond through cloud-based, pay-as-you-use processing that functions with the simplicity of a pay-as-you-go phone. By eliminating expensive peak-time overheads and focusing on volume-based efficiency, CLOWD9 allows banks and fintechs to launch new products with a staggering 90% reduction in cost compared to other global markets.

Check out the full article here: https://ffnews.com/fintech-tv/event/event-videos-2026/money20-20-asia-2026/regional-openness-and-the-shift-to-cloud-processing/