Banking in the Cloud Ross Mallace Commercial Director – Cloud/SaaS
Cloud is here. ALL “By 2020 most core most banking initiatives will be in the cloud” – John Schlesinger
Changing Cloud Adoption in Financial Services Over 100 financial services regulators engaged by Microsoft in 4 years 6 years 4 years 2 years ago… ago… ago… Regulator Right Institution is accountable to Examine & in control Financial “No point in “The cloud “Tell me Financial Services even is how to get Online Services Services Compliance (All Customers) Amendment discussing inevitable… there in a Program (FS Only) (FS Only) Cloud, too safe But right many compliant now the 90% of the “Too Big to Fail” banks regulatory way…” timing isn’t 7 of the top 8 “Too Big to Fail” insurers issues…” right...” are leveraging the Microsoft Cloud…
Temenos Community Forum (TCF) Survey Data security and confidentiality (%) 50 46 45 39 38 As the cloud market has matured, and the adoption has increase, banks are 34 30 29 22 22 17 starting to view cloud security as a benefit. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Perceived Regulatory Hurdles (%) Regulators are starting to provide greater guidance on the use of cloud for 40 39 37 36 the outsourcing of material services. Recent examples from the FCA, 34 31 30 29 29 24 19 Luxembourg and recently published draft guidelines from the EBA. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Availability of Reference clients (%) The volume of banks, and the sophistication and relatability of those banks as reference points, has soared. Many regions can now point to banks 22 19 18 15 15 15 14 successfully operating in the cloud for reference for their own regulator and 11 10 10 internal stakeholders. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: 2019 data is based on 210 respondents, surveyed in Madrid as part of the TCF/Cognizant survey
Things are changing fast Fast constant agile business change Slow infrequent waterfall system change Business case Capex Program Success/Fail Idea Opex Agile Dev/Measure/Pivot Big bang or progressive renovation New digital bank & propositions SaaS Vendor Management Infrastructure & Application Management Service Integration System integration
The Bank IT of the future is a SaaS Vendor Manager and Service Integrator
Traditional Bank IT Model Bank Business Bank IT Bank Applications External Systems Call Centre Bank Customers Support (3 rd parties, SaaS) Calls L1 Service Desk Workflow Support Calls IT Operations Credit Online ID Integration Layer Scoring Application Management Core Platform Management Cards Bank Operations Banking Infrastructure Management GL Others Vendor Management Ops Service Integration On-Premise Cloud, Other Technical System Integration
Traditional Bank ITO Model Bank Business ITO Service Bank Applications External Systems Call Centre Bank Customers Support (3 rd parties, SaaS) Calls L1 Service Desk Workflow Support Calls IT Operations Credit Online ID Integration Layer Scoring Application Management Core Platform Management Cards Bank Operations Banking Infrastructure Management GL Others Vendor Management Ops Service Integration On-Premise Cloud, Other Technical System Integration
Future Bank IT Model Bank Business Bank IT Integration External Systems Call Centre Bank Customers Support (3 rd parties, SaaS) Calls L1 Service Desk Workflow Support Calls Credit IT Operations Online ID Integration Layer Scoring Core Cards Bank Operations Banking Platform Management GL Others Vendor Management Ops Service Integration Cloud, PaaS Cloud, Other Technical System Integration
Future Bank ITO Model Bank Business ITO Service Integration External Systems Call Centre Bank Customers Support (3 rd parties, SaaS) Calls L1 Service Desk Workflow Support Calls Credit IT Operations Online ID Integration Layer Scoring Core Cards Bank Operations Banking Platform Management GL Others Vendor Management Ops Service Integration Cloud, PaaS Cloud, Other Technical System Integration
Temenos Cloud Supporting our clients in their cloud journey since 2011 Temenos Temenos T24 Financial Payments Analytics Fund Admin Infinity Transact Crime Operated, maintained and supported by experts 24/7
Temenos cloud 33 400+ 120+ 22% x6 Core Clients use Temenos of all new Increase in banking Temenos Cloud deals are revenues clients Cloud employees Cloud services 2011 2012 2013 2014 2015 2016 2017 2018 Temenos has amassed more cloud expertise and experience than any other banking software vendor.
Agile Devops Drives Innovation Temenos Temenos MarketPlace Model Bank Assemble Bank Production Bank Developers Extend code Deliver and tests
Service Integration – Needs Standards ITSM Network Services Security Network Secure VPN Gateway Authentication Firewall WAF Connectivity Security Remote Event Management Framework Management Management Compliance Management Monitoring Access Capacity Auditing Presentation Services Management Channel DMZ Certificate Real User Management Management Management Monitoring Incident Encryption Management Interaction / Integration Services Service Level Logging Management API Message File Transfer ESB Management Routing Availability Alerting Management Application Services Forensic Change Local Management Services Application Application Batch Process Application Development Monitoring Patching Management Integration Verification Data Loss Release Management Prevention Information Services Data Configuration Database Data Data Backup / Management Classification Data Extract Data Archiving Reporting Management Replication Restore Data Application Management Protection Infrastructure Services Environment Security Infrastructure Patch Infrastructure Elastic Scaling BCP / DR Management Provisioning Testing Monitoring Management
Security is Key. Security Controls Include: Security Operational ISO 27001 SOC2 Reviews Testing certification Certification Quarterly: Of all services access, patches, keys, risks CSA CCM IT audit DLP Temenos Cloud Review of reviews Data loss controls prevention systems
Regulators are Moving Cloud computing technologies developed around them a complex legal and regulatory environment. There are federal, international and even state laws that cascade from the beneficiary of service to it’s provider and third parties. International Standards SOC 1 ISO 27001 SOC 2 ISO 27017 ISO 27018 EMEA APAC Americas USA UK Australia France Peru Panama Singapore Luxembourg Malta Norway Philippines
Key Priorities to thrive in the new World. What to focus on Why Let those who build it, run it, keep it current, Consume SaaS services where possible and only pay for what you use. Focus on your differentiator and Commoditise Own/Control what is really core to your USP the rest. Offer your business a single service Master SIAM (Service Integration and underpinned by many SaaS services. E.g. Management) Office 365 Key for regulators but more importantly for Master Outsourcing and Risk Management understanding and managing Risk Build competencies in Vendor Management, Transform the organisation to align to the Ops Service Integration and SaaS Technical new world Integration
Thank You temenos.com
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