nCino: International Banks Lag U.S. Peers in Digital Transformation

Digital transformation can come even to industries where change happens slowly.

As the financial services industry grapples with the rapid pace of digital transformation, cloud banking has emerged as an enabler of innovation, agility and cost efficiency. By leveraging cloud computing, financial institutions can streamline operations, enhance customer experiences and accelerate the development of new products and services.

That’s the space where software providers like nCino, which on Tuesday (Aug. 27) reported its second quarter 2025 earnings, play — giving them a unique insight into the banking sector’s ongoing evolution.

“In the U.S. it’s a volume business; we don’t see as many very large transformation initiatives as we did in the past … in the EU, it is lumpy. They are somewhat behind the U.S., and the pipeline is seeing bigger transformation deals,” said Pierre Naudé, chairman and CEO at nCino.

nCino sells to financial institutions, enterprise banks, regional banks, community banks and credit unions, and the majority of its revenue comes from the U.S.

“Platform deals, where they buy everything from us, that moves the needle,” Naudé said. “In Europe, they prefer point solutions.”

nCino’s total revenues for the second quarter were $132.4 million, a 13% increase from $117.2 million reported for the same quarter last year. Subscription revenues for the second quarter were $113.9 million, up from $99.9 million one year ago, an increase of 14%, per the company’s financials.

Still, nCino’s share price slid by over 10% during after-hours trading, in part driven by its softer-than-expected third-quarter 2025 guidance.

The company reported a loss of $11 million for the most recent quarter, compared to $15.9 million a year ago.

Related reading: nCino Unveils AI-Powered Banking Advisor

Demand for Cloud Banking and Artificial Intelligence

The cloud accelerates innovation by providing financial institutions with access to advanced technologies such as artificial intelligence (AI), machine learning (ML) and big data analytics. These tools enable banks to develop personalized customer experiences, improve risk management and optimize business processes.

During the quarter, nCino expanded its partnership with ABN AMRO, a top 25 European bank, and also renewed its relationship with a Top 5 European bank for an additional three years. An institution with over $20 billion in assets also became the largest bank by asset size to expand their use of the nCino platform to include portfolio analytics for commercial real estate stress testing.

“We are pleased to report that we again exceeded quarterly guidance for total and subscription revenues as well as non-GAAP operating income,” Naudé said. “In the second quarter, we saw particular strength in the U.S. across both the enterprise and community & regional segments, with increased demand for solutions that span the breadth of the nCino platform including consumer lending and deposit account opening, as well as our Generative AI offering, Banking Advisor. While some macro-economic challenges persist, particularly in the U.S. mortgage market and international markets, we have a positive outlook on the second half of the year.”

Read more: Payments Execs Debate Banking’s Transformative Future

PYMNTS Intelligence found that nearly 70% of consumers in the U.S. and Australia would like to have a single app that would allow them to manage their banking, investments and various shopping activities.

As digital transformation becomes a strategic priority for financial institutions, the adoption of cloud banking is expected to accelerate. Cloud banking enables financial institutions to expand their operations into new markets by reducing the barriers to entry, such as the need for physical branches and local IT infrastructure. This is particularly relevant in emerging economies, where digital banking adoption is on the rise.

“The community bank space is like a machine; it just rolls forward,” Naudé said.

Data in the report ”How FinTechs Can Align With Credit Union Innovation Agendas,” a PYMNTS Intelligence and Velera (formerly PSCU/Co-op Solutions) collaboration, reveals that the pace of innovation across credit unions (CUs) has resulted in almost all FinTechs viewing CUs as collaborators more than competitors.

Only 3% of FinTechs say CUs are more competitors than clients.

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