Cloud banking


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Cloud banking

  1. 1. Cloud Bankingby Partho H. Chakraborty
  2. 2. Overview• Cloud Computing is defined as an on demand Internet based computing environment where you pay only for resources that you use• Users need not own anything apart from a browser and an internet connection and do all the required transactions without actually owning the software• It is an evolution in the way computing can be done and the journey started from Mainframes to Cloud today• As per Grail research, what was a joke for CIOs a year back is now number 2 on their plate• Cloud can be private, public, community or hybrid• Cloud based delivery can be classified as Saas, Daas, Paas, Iaas• Cloud can be hosted or custom developed or it could be a combination of both.• Key Issues in Cloud is Security as many head Honchos are still not sure how secure it is, as the hackers are getting better and sophisticated• It is not New nor is the concept Alien but it is certainly a Hotly discussed topic Partho H. Chakraborty Cloud Banking
  3. 3. Cloud Taxonomy Courtesy - TCSPartho H. Chakraborty Cloud Banking
  4. 4. Financial Cloud • When Financial Institutions such as Banks use Cloud for their financial requirements it is called as Financial Cloud Computing • The biggest challenge in Financial Cloud is the perceived notion that the data could be compromised • It looks to be a trade off between costs and security • Financial Institutions are joining Open Data Center Alliance, which is vendor agnostic • Banks have started using Private Clouds but it is limited and it needs a lot more to be done • Central Banks need to take the lead in Cloud Computing as it will then give the impetus for other banks to followPartho H. Chakraborty Cloud Banking
  5. 5. Current Problem• Disparate Systems need integration• Need to upgrade software periodically• Need to be BASEL II and IFRS compliant• Need to adapt to Regulatory Requirements• Scalability issues• Risk a major issue• Software costs and implementation costs going up and so are support costs• Banks also have costs in IT staff and maintaining hardware, software and network• Mergers and Acquisitions become a major challenge especially with large banks having many lines of business and branchesPartho H. Chakraborty Cloud Banking
  6. 6. Challenges• Banks not keen to adopt Cloud• It looks like a wait and watch game• No support from Central Banks• Issues of Regulation and Compliance• Product Companies averse to lose revenue as it will be Pay and Use• Customization a Challenge• Location of Cloud could be a major issue• Service oriented companies could see a substantial dip in their revenues• Smaller companies could become non-existent in this new scenario and service oriented companies looks to bear this brunt. Cloud BankingPartho H. Chakraborty
  7. 7. Proposed Solution • For example a company like Google hosts various applications from various product companies. • All access will be through Google UI • Product companies can be in any location • All products will be updated with the latest releases • Data stays in bank. All they do is access various services as required • All transactions will be encryptedPartho H. Chakraborty Cloud Banking
  8. 8. Proposed Solution - Architecture Central Bank Google Interface SAP Oracle Misys Google Interface Mobile Bank A Laptop Desktop ATM Bank B Handset Data Telephone DataNote: Google is just mentioned as an example. It can be any company which can hostthe service such as TCS, Wipro, etc. Partho H. Chakraborty Cloud Banking
  9. 9. Cloud Banking• Process flow by client to establish limitsPartho H. Chakraborty Cloud Banking
  10. 10. Cloud BankingPartho H. Chakraborty Cloud Banking
  11. 11. Cloud Banking• The entire process could be done through the Cloud, especially if both buyer and Supplier are banking with then same bank• Cloud Banking enables the customer and bank to move on to paperless transaction with a host of benefits such as: • Any Time and Saves Time • Any Where • Instant Cash • Error Free Documentation • Empowering Customers • Transfer of Money in Moments• Cloud Banking generates Carbon Credits Partho H. Chakraborty Cloud Banking
  12. 12. Revenues• Let us take a sample case:• Product: SAP FICO• Users: 10• License Fees: ` 100,000 per user/per annum• ` 1,000,000 per annum• Banks: 10• Users: 20• Hours : 6• Days: 200• Revenue: ` 5,000,000; ((100,000/24)x6x200)• Sharing: 20% to Google• Net Revenue: ` 1,000,000 This is a very simple case but it highlights the savings to bank and that this business would earn in volumes Partho H. Chakraborty Cloud Banking
  13. 13. Proposed Road MapPartho H. Chakraborty Cloud Banking
  14. 14. Summing Up • Brand value of company would increase • It would truly be a pioneer in Cloud Computing with others emulating it • The beginning would be from non-core products but eventually handling all the bank’s requirements • Smaller Banks would be trendsetters and the bigger ones would follow • Pricing, Convenience, Security, Customization and Robustness would be the key issues Cloud Banking generates Carbon Credits thus greening the environmentPartho H. Chakraborty Cloud Banking
  15. 15. Thank YouPartho H. ChakrabortyA – 305, DSR Spring Beauty Apts.,124/1, ITPL Road,Brookfield, Kundalahalli,Bangalore – 560 037INDIATel: +91 - 80 – 420 50293; Cell: +91 - 99863 22504Email:;