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Cloud Adoption in Financial Services

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Cloud Adoption in Financial Services

  1. 1. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Cloud Adoption in Financial Services Amazon Web Services | Financial Services Laurence Thiery, Head of Financial Services BD, Asia Pacific T A I P E I 10.15.19
  2. 2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
  3. 3. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. The world doesn’t work the way it used to The average lifespan of an S&P company dropped from 67 years in the 1920s to 15 years today. More than two- thirds of IT budgets go towards keeping the lights on. 84% of CIOs have responsibilities outside of traditional IT. 15 years 2/3 84%
  4. 4. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Disruption is much easier today Hospitality Financial ServicesTransportation Grocery This is something “born in the cloud” companies have already discovered. Messaging
  5. 5. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Cloud computing has become the new normal Migrating existing applications as quickly as possible Deploying new applications to the cloud by default AWS serves more than a million active customers every month in 190 countries. Thanks to customer obsession and an increasing pace of innovation, AWS became the fastest technology vendor in history to reach a $10B run rate.
  6. 6. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. On the importance of cloud and artificial intelligence…
  7. 7. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. On the importance of cloud and artificial intelligence…
  8. 8. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Why are so many enterprises moving to the cloud? Get out of managing expensive data centers Access capabilities to meet net new needs Transform their culture and become more digitally native HPC/Grid computing Agile data analytics AI/Machine Learning Internet of things Serverless computing Chatbots
  9. 9. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. AWS has become integral to the IT strategy of the entire industry
  10. 10. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. AWS is the cloud provider of choice for major financial institutions A top 10 bank in the US …is migrating core systems to AWS and planning to own or lease no data centers by 2019. A US-based G-SIB …is running 11 mission critical grid/HPC workloads on AWS. A European G-SIB …is moving its cash management platform and a mission critical pricing engine to AWS. A top-5 asset manager …has moved over 200 workloads to AWS while shuttering its internal private cloud. A leading global insurer …delivered a new solution to market on AWS in three months (as opposed to 18 on premise). A European G-SIB …is going all-in on AWS without building an abstraction layer.
  11. 11. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. FinTech startups have also found a home on AWS “ ”Banks aren’t being disrupted by FinTech technology, they’re being disrupted by customer expectations. — McKinsey & Company of the 2018 Forbes FinTech 50 use AWS 100% Launched its exchange on AWS, including real-time analytics processed by Amazon Kinesis Built a secure big data storage and analytics system on AWS Launched a scalable trading app, transacting over $1B Relies on the security best practices and auditability of AWS to run its PCI-compliant payment platform Adopted AWS for the service quality and the resilience it required, at a variable cost Uses AWS managed services to process data at scale while reducing operating costs
  12. 12. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. …and are flourishing across Asia
  13. 13. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. AWS is the fabric connecting an expansive partner community Technology Providers Systems Integrators & Consultants
  14. 14. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
  15. 15. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Customers no longer ask “why?”…they ask “how?” and “what?” How can we automate security, compliance, and governance to keep pace with the business? How can we take advantage of new tools to derive greater value from our data? What is the best approach to executing a large migration? What changes do we need to make to ready our organization for cloud adoption at scale? How can we modernize our infrastructure and application development to better serve our customers?
  16. 16. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. FSI organizations are innovating on AWS AWS is opening a bunch of new doors for us, it’s allowing us to experiment, it’s allowing us to grow, it’s giving us access to some of the most advanced technology tools on the planet to play with and experiment with. – David Gledhill, CIO at DBS Bank Group” Realizing FinTech innovations Running real-time AI based credit-decisioning Enhancing the security of its data Launching a secure and reliable digital bank Running market surveillance systems Publicly-available trade warehouse Providing digital and personalized experience Migrating regulated workloads to the cloud Running models to research investment signals Providing personalized recommendations Offering personalized policies using ML Developing novel digital platforms “
  17. 17. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. The Financial Services industry continues to evolve Open banking New Digital PlayersDigital Transformation & User Engagement
  18. 18. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. The Financial Services industry continues to evolve Open banking New Digital PlayersDigital Transformation & User Engagement
  19. 19. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Open banking is now the standard, by mandate and by choice Banks that want to transform are embracing open banking – and it’s quickly spreading across the globe. 50% of G20 countries expect to release open banking standards by year-end 20181. 1. Hype Cycle for Open Banking APIs, Apps and App Stores, Gartner 2015 OPEN BANKING STANDARDS Enacted Active consideration 2. National Australia Bank, Commonwealth Bank, Australia and New Zealand Banking Group, Westpac Australia: The four major banks2 in Australia must make banking data available to third- party providers by June 2019. Mexico: FinTech Law requires Mexico to publish an open banking standard by March 2020. USA: Industry groups developed frameworks for common open banking standards Japan: Bank of Japan amended the Banking Act, calling for 80 Japanese banks to open their APIs by 2020. Brazil: The central bank is advancing with the design of an open banking model. Hong Kong: The Open API Framework includes a four- phase approach for banks to implement open API functions. Singapore: Monetary Authority published an API framework for governance, implementation, use cases, and design principles. Europe: UK CMA Open Banking Standard and EU PSD2 came into force in January 2018.
  20. 20. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Customers are building open APIs on AWS today Starling Bank built a mobile-first bank on AWS, with an open API from day one. The bank created the Starling Marketplace to promote FinTech partnerships, and to launch new payments and banking integrations. Mobile-first UK bank Even though Monzo did not need to comply with Open Banking Standards, the challenger bank provided open APIs, so customers could manage financial accounts through the application of their choice. UK challenger bank Multinational G-SIB Name withheld Leading Asian bank Challenger banks Established players The bank built their open banking platform on AWS, completing it within five weeks. The solution is scalable and can deploy in different countries including Hong Kong, Mexico, Canada, and Australia. The bank wanted a scalable third-party sandbox for FinTech innovation. After less than one month of development, they launched 150+ APIs for over 50 FinTech and non- financial partners on AWS.
  21. 21. 60+ Live partners 180+ Live APIs 180+ 180 We launched the world’s largest banking API platform in early November 2017
  22. 22. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. The Financial Services industry continues to evolve Open banking New Digital PlayersDigital Transformation & User Engagement
  23. 23. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Cloud is enabling transformation and innovation in the industry As financial institutions better understand their ability to meet regulatory compliance obligations when operating in the cloud, they are increasingly focused on leveraging the cloud to transform existing businesses and bring innovative new solutions to market. Widespread adoption today Gaining traction Customer experience & digital channels Grid & high-performance computing Data lakes & agile analytics Core systems transformation AI/Machine Learning Blockchain & DLT
  24. 24. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. National Australia Bank leverages cloud capabilities to transform Executive sponsorship Cloud-first strategy Target 35% migrated to public cloud by 2020 Hiring new talents Training at scale Outsourcing to in-sourcing Cloud progress in investor pack Digital channels Data lake and analytics Artificial intelligence and machine learning Continuous compliance Open banking Contact center Core banking Over 160 years old company One of the top 4 Australia bank $$$ multi-year investment in transformation
  25. 25. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved.
  26. 26. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved.
  27. 27. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. DBS bank is using AWS to connect more directly with customers DBS wanted to re-architect its technology to digitally engage its customers while continuing to manage risk. Amazon EC2 provides DBS with the unlimited compute capacity it needs to innovate at scale and handle short-term surges in trading volumes. With AWS, the bank is better able to experiment in a digital way and deliver new applications rapidly, while adhering to the highest standards of security. Amazon EC2 AWS is clearly ahead in terms of scale and some of the innovation and reach that they have. We see AWS as the key enabler to really driving the change we want to see at DBS. – David Gledhill, Head of Technology & Operations, DBS Bank “ ”
  28. 28. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. DBS marketplace
  29. 29. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved.
  30. 30. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. HDFC Standard Life uses AWS to make recommendations The engine recommends HDFC Life Insurance products, or nudges customers on a personalized journey, delivered in email, push notifications, or SMS. HFDC, one of the largest life insurance companies in India, wanted to build a recommendation engine to personalize the customer experience. Our recommendations engine predicts two types of recommendations – the appropriate insurance product, and the personalized customer journey. – Sanjay Jain, Head of Engineering, HFDC Standard Life “ ” HFDC used an AWS data lake with AWS Lambda, Amazon Athena, Amazon DynamoDB to build a recommendation engine that could protect personally identifiable information. Amazon Athena AWS Lambda Amazon DynamoDB
  31. 31. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. The Financial Services industry continues to evolve Open banking New Digital PlayersDigital Transformation & User Engagement
  32. 32. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Regulators across Asia Pacific are issuing digital bank licenses Regulators are being proactive to spur innovation across APAC Digital banking licenses issued Process for consultation has started Singapore: Monetary Authority announced in June 2019 that it will issue 5 digital banking licenses. Hong Kong: The HMKA issued 8 new digital banking licenses in the first half of 2019 China: 4 digital-only banks are currently operating in the market. Australia: Granted 4 digital banking licenses, at least 6 more are in the process of applying. Malaysia: The BNM is expected to announce its approach for digital banking licenses by November 2019. Korea: Issued 2 digital-only banking licenses in 2018 in addition to 2 existing digital- only licenses issued previously. India: Opened its new infrastructure, the United Payments Interface, to non-banks. Taiwan: Granted 3 digital-only banking licenses in July 2019. Thailand: Expecting announcement in early 2020.
  33. 33. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. New digital players are cloud native (or migrating)
  34. 34. 2019 Amazon Web Services Inc. or its Affiliates. All rights reserved. Across the industry, AWS is enabling agility More (and better) customer data Ideation and experimentation Rapid product developmentContinuous deployment Enhanced customer experience Easy provisioning of resources
  35. 35. Thank you! © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Laurence Thiery thieryl@amazon.com linkedin/in/laurencethiery/
  36. 36. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.

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