Welcome!

@CloudExpo Authors: Liz McMillan, Elizabeth White, Pat Romanski, Yeshim Deniz, Aruna Ravichandran

Related Topics: @CloudExpo, Microservices Expo, @ThingsExpo

@CloudExpo: Article

Digital Transformation in the Retail Banking Industry | @CloudExpo #Cloud #FinTech #DigitalTransformation

Like other industries did before it, retail banking is riding a bucking bronco of digital transformation

Digital Transformation in the Retail Banking Industry
By Omed Habib

Like other industries did before it, retail banking is riding a bucking bronco of digital transformation. While customer satisfaction levels drop and government rules and regulations continue to expand, retail banking seeks new ways to adapt to the massive changes in how consumers interact and use financial products and services.

However, unlike other industries such as book publishing that have been rocked by the tsunami of digital changes in the marketplace, companies in the banking sector also have to comply with extensive regulations intended to protect consumers. In confronting this new landscape, banks are looking at better ways to use their existing data in real-time to improve customer experience and loyalty, comply with a growing number of government rules and privacy laws, and consolidate disparate IT systems in their current infrastructure. Banks must provide a seamless experience for customers no matter which product or service they choose.

Digital Banking
Retail banks have gone digital - using online channels (e.g., mobile, web, etc.) and new technology to improve customer experiences and employee productivity. Common programming languages used in banking include Python, C++ for speed, C# for trading platforms, Java, Scala, HTML5, and .NET. This allows the institutions to introduce new features and services rapidly without the need for constant updates from vendors. It also reduces errors that are due to lack of manual oversight.

The network becomes more virtualized - rather than each router and switch on the system with set data paths solely on the destination address, a centralized controller creates the optimal path based on predetermined criteria set by the network operator. Operations can be managed with a small set of software tools, allowing users to achieve business objectives and KPIs faster and easier as the organization becomes more adaptable to change.

In essence, banks are becoming technology companies - they want to embrace a software-defined business structure because they have no other choice. Customers don't think of banks as an offline or online institution. To them, it is all the same, and they expect to have a positive experience no matter which channel they use to obtain service. If a consumer does all their banking through an app on an iPhone, that becomes their entire banking experience. Without a robust mobile app, banks are short-changing their future because customers will gravitate to more technology-savvy institutions.

Slow Adoption
One of the reasons banks are slow to adapt to a digital world is that it costs a tremendous amount of money and time to change out legacy systems. Integrating new digital technologies with legacy backend systems requires an enormous amount of capital investment. Furthermore, massive changes increase the risk of exposure to potential security problems, which are a constant threat.

Microservices and Containerization
Like many traditional businesses that have maintained legacy enterprise systems for decades, retail banks are stuck between relying on the tried-and-true monolithic legacy systems that already work and moving to provide innovative services and technologies to a mobile-first consumer community that craves the latest technology. One way retail banks meet this challenge is to adopt cutting-edge technologies such as microservices, containerization, and APIs.

Microservices are applications made up of independent processes that talk to each other using APIs. Each process handles a single small task, allowing developers to build highly modular software applications that can be rapidly developed, modified, and deployed - and also reflect individual business units and initiatives in contrast to mini-projects and individual features.

Containers allow users to run software on multiple computing environments without worrying about the type of underlying OS, network, or infrastructure. Each container has a full runtime environment - an app and its libraries, dependencies, and config files. This enables it to run on everything from virtual machines to a cloud-based PaaS.

Legacy Systems
One of the major benefits of these technologies is that a retail banking firm can implement them alongside their legacy system. They can adopt new ideas and approaches without threatening the stability of their current operation. This way, they will meet their obligations to government regulations such as Dodd Frank, Solvency II, and BASEL III. With containers and microservices, retail bank DevOps can rapidly update new features and functions without the threat of a company-wide outage or performance hits.

In effect, banks should be less concerned than they were in the past about owning and maintaining their entire IT infrastructure. Instead, different functions are broken into components, some of which will be managed by third-party providers. This reduces technological overhead and increases the number of resources available on a strategic level.

Lacking the Human Touch
Software-defined banking may reduce the trust of some consumers because of the potential reduction in human interaction. Traditional banks have an advantage over Internet-only banks because their customers can get to know the manager and employees at a local branch. If consumers have a problem, they can turn to people they know to help resolve the situation. Local branches may also provide some services that are not available to consumers online. This is especially important for local businesses that rely on banks to provide capital for purchasing inventory, equipment, and business expansion.

As software systems continue to evolve and become more efficient, the need to employ additional staff across the institution diminishes. This can have a drawback effect over time as customers who prefer to work directly with bank employees may discontinue patronage.

ME Bank Adapts to Digital
One example of a forward-thinking financial institution is ME Bank in Australia, which won a Mozo award in 2016 as the Expert's Choice for Australia's best bank. Owned by a consortium of super funds, ME Bank started in 1994 by offering home loans and has since expanded to offer credit cards, personal loans, automobile loans, insurance, and other services.

In a recent interview with Business First magazine in Australia, ME Bank's CEO, Jamie McPhee, talked about the challenges of banks adapting in the digital era. He said that we are moving from the industrial age of mass production to a new era that uses data to create a better customer experience. The digital transformation, he said, is affecting every business.

When he took over the CEO position in 2010, McPhee immediately began employing digital tactics. His belief is that banks who survive in the new digital age can adapt technology to meet customer expectations and demands. While many banks are incorporating newer technologies, McPhee went a step further, creating a shift to a "digital first" philosophy.

He was also a leader in the move toward mobile banking. Early on, McPhee recognized the rise of mobile banking and the desire for consumers to complete transactions through smartphones and other portable devices. He noted the success of ING Direct, which launched in 1998 without any brick-and-mortar locations, yet garnered 5 percent of the retail banking market in short order. McPhee's efforts have paid off. In 2014, ME Bank garnered a profit of almost $37 million (AUS).

ME Bank's experience is instructive. They realized that successful banks, and indeed businesses across the industrial spectrum, must customize data to meet customer expectations, needs, and desires.

Management and Monitoring

Retail banks can minimize and prevent UX issues by deploying software that manages and monitors the performance of their applications, alerting them to problems well before they reach crisis levels. Application performance management (APM) tools such as AppDynamics alert your internal teams to problems in the critical transactions that power your business. By monitoring software and performance optimization, you can detect serious issues before your users do, which helps maintain the level of service your customers expect.

The post Digital Transformation in the Retail Banking Industry appeared first on Application Performance Monitoring Blog | AppDynamics.

More Stories By AppDynamics Blog

In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

@CloudExpo Stories
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...