Digital maturity models in retail banking: Evaluating the correlation between cloud adoption and cost-income ratio reduction

This research examines the relationship between cloud adoption maturity and operational efficiency in retail banking, specifically focusing on the cost-income ratio (CIR) as a key performance indicator. Through a comprehensive analysis of 156 retail banks across developed markets, this study develops and validates a digital maturity assessment framework that quantifies cloud adoption stages and correlates them with CIR improvements. The research employs a mixed-methods approach combining quantitative regression analysis, case studies, and expert interviews conducted between 2022 and 2024. Findings reveal a statistically significant negative correlation (r = -0.883, p < 0.001) between cloud adoption index scores and CIR, with high-performing institutions achieving CIR reductions of 9.7% compared to baseline measurements. The study identifies five distinct stages of cloud maturity and demonstrates that banks in advanced stages (Extensive Adoption and Cloud-Native Transformation) achieve superior cost efficiency through automation, infrastructure optimization, and enhanced scalability. This research contributes to the digital transformation literature by providing an empirically validated framework for assessing cloud maturity and offers practical implications for banking executives seeking to optimize technology investments for operational excellence.