As the financial services industry goes through fundamental transition, we see digitalization as becoming a critical success factor. This talk will cover trends around how cloud and web services can enable you to transform your operating platforms to provide your customers and partners with better experiences.

1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Zane Moi, Head of Business Development HKT
Michael Braendle, Principle Cloud Architect, Professional Services, HKT
2016/06/17
Future Trends in FSI
How can web services help to transform your business?

2. Transformational Changes
Changing customer behavior will continue to fundamentally transform FSI’s industry
and require investments into the overall Customer Experience
New compe)tors e.g. Fintech’s and disintermedia)on will put an increased pressure
on the FSI’s and requires investment into innova8ve solu8ons
Tighter regula)on will put more scru)ny on the FSI’s and business process, compliance
workflow automa8on will become a key differen8a8ng factor
New technologies e.g. Blockchain will disrupt incumbent business models, players and
require banks to be able to integrate with the larger FSI ecosystem
Cost and opera)onal risk reduc)on requires FSI’s investment into simplifica8on
programs and drive the adop8on of and elas8c infrastructures

3. An API* approach for FSI
*Application Programming Interface

4. Unbundling FSI Value Chains
Monolithic Platforms Decouple by Layering Micro Services

5. Monolithic Core Banking Platforms
Etc.
Monolithic Architecture:
• Tightly-integrated core banking platforms
• Inefficient, hard-to-change core banking
solutions
• Long, expensive change cycles
• Limited options for effective out-/in-source
business capabilities
• Tight-coupling increases single point of failure
and operational risk
Reference Data
Operations &
Execution
Risk &
Compliance
Etc.
Customer Experience
Tightly-coupled, hard-to-change legacy core banking platforms result in…
…poor customer experience, slow innovation cycles and expensive IT platforms.
Client Advisor
Capabilities
Client-facing
Capabilities
Core Banking

6. Decoupling by Layering
Enterprise Service Bus
Client Advisor
Capabilities
Client / eBanking
Capabilities
Etc.
Enterprise Service Bus Architecture:
• Many companies use an Enterprise Service Bus
(ESB) to decouple front end capabilities from
legacy core banking solutions
• ESBs become critical dependencies
• Unclear business and IT cost ownership for the
ESB - layer
• Performance bottleneck, single point of failure
• Minimal increased efficiency in time to market
• Increased complexity, introducing another layer
Reference Data
Operations &
Execution
Risk &
Compliance
Etc.
Customer Experience
Enterprise Services Buses are widely used to decouple core banking solutions…
…but resulted in increased complexity, cost and minimal time to market increase.
Core Banking

7. Adoption of Standard API’s
Etc.
Component-based, Service-oriented
architecture
• Functional and information master components
• Use Application Programming Interface’s (API’s)
to access information objects
• APIs implement functional and data access
control
• Customer-facing applications become decoupled
from the core banking platform
• Improved time market delivering a client and
client advisor functionality
• No bulky ‘Integration’ layer and clear cost
ownership
• Functionality and information accuracy is
constraint by legacy core banking platform
Customer Experience
API’s are an efficient way to decouple client-facing business capabilities however…
…the customer experience is still constraint by legacy core banking systems.
Client Advisor
Capabilities
Client-facing
Capabilities
API API API API
Reference Data
Operations &
Execution
Risk &
Compliance
Etc.
Core Banking

8. Adoption of Micro Services – API Banking
Trade
Execution
Micro Service Architecture:
• Innovate faster by using standard APIs for
application development
• Customer experience is based on a aggregation
of micro services
• Loosely-coupled micro services integrate
through standard APIs
• Elastic scaling of individual micro services
• Enable business to source capabilities in the
most cost efficient way:
• Build business differentiating capabilities
• Source non-differentiating capabilities
• Increase agility by enabling teams to develop
independently – Two Pizza Team
Customer Experience
Provide an integrated customer experience by aggregating micro services…
…every banking service is a Application Programming Interface (API)
API API API API
Corporate
Actions
Anti Money
Laundering
Etc,
Payment
API API API API
Client
Information
Suitability
Rules
Trade
Capture

9. Micro Service
Micro-service
Software Modules
(application, libraries, etc)
Data Store
(eg, DynamoDB, RDS,
Cache, S3)
Public API addProductDetails(ProductId id, ProductDetails details)
removeProductDetails(ProductId id)
getProductDetails(ProductId id) : ProductDetails
Micro service = Service-oriented architecture + “small” public API

10. Micro Service
Micro-service
Software Modules
(application, libraries, etc)
Data Store
(eg, DynamoDB, RDS,
Cache, S3)
Public API addProductDetails(ProductId id, ProductDetails details)
removeProductDetails(ProductId id)
getProductDetails(ProductId id) : ProductDetails
Micro service = Service-oriented architecture + “small” public API

11. Web Of Micro Services
Position and Transaction
Customer Information
Product Information
Client Report / Monthly Statement
Investment Proposals

12. Example of a Micro Services Architecture
Virtual Private Cloud
AWS Cloud
Corporate Data Center
Mobile
apps
API Gateway
AWS EC2
Order Manager
Suitability Rules
AWS ECS
Internet
Customer
Market execution
Suitability check
Market execution
Buy AMZN
AWS Direct
Connect
Legend:
Micro services
AWS
Lambda
Amazon
S3
Order: Buy
stock (AMZN)
View Product
Factsheet
AWS RDS
AWS RDS
Market Data
AWS
DynamoDB
Amazon
CloudFront
Get stock title
information
Public: Suitability Rules API
API
APIAPI

13. Example: Deployment at Amazon.com

14. The Impact of an API*
Approach for FSI on
Distribution
*Application Programming Interface

15. Omni-Channel Distribution, Today
Non-Technology Technology
Insurance Banking
Branch / Kiosk ATM
Call Centre
Direct Sales
(Agent/CA)
Web
Mobile
Credit Cards
Agency/Broker
Investment
Direct Marketing
Direct
Bancassurance
JV
EFTPOS
Non-Financial
Service Retailers
Indirect

16. Omni-Channel Distribution, in an API World
Non-Technology Technology
Insurance Banking
Branch / Kiosk ATM
Call Centre
Direct Sales
(Agent/CA)
Web
Mobile
Credit Cards
Agency/Broker
Investment
Direct Marketing
Direct
Bancassurance
JV
EFTPOS
Non-Financial
Service Retailers
Indirect
API
GATEWAY
Other 3rd Parties
Family Offices
Affiliates
Non-Financial
Digital Retailers

17. Opti-Channel Communications
Non-Technology Technology
Insurance Banking
Branch / Kiosk ATM
Call Centre
Direct Sales
(Agent/CA)
Web
Mobile
Credit Cards
Agency/Broker
Investment
Direct Marketing
Direct
Bancassurance
JV
EFTPOS
Non-Financial
Service Retailers
Indirect
API
GATEWAY
Other 3rd Parties
Family Offices
Affiliates
Non-Financial
Digital Retailers

18. What Is Opti-Channel Communications
Communication via the right
channels using the right
media …
with Context

19. Building Context Driven
Engagement

20. Business Drivers
Create business value from getting better customer insights and additional
opportunities to engage and cross sell
Scale your business by automa8on and using algorithms
Experiment with advanced analy8cs and machine learning
Build on a elas)c, scalable and cost-efficient data analy8cs plaBorm

21. Optimal Combinations of Interoperable Services
Amazon Redshift Amazon Elastic
MapReduce
Data Warehouse Semi-structured
Amazon
Glacier
Amazon Simple
Storage Service
Data Storage Archive
Amazon
DynamoDB
Amazon
Machine
Learning
Amazon Kinesis
NoSQL Predictive Models Other AppsStreaming

22. Use Case: Automated Advisory Platform
Customer
Profile
Position
&Transaction
Research
Information
Benchmark /
Asset Alloc.
Social Media
Investment
Proposal
Investment
Proposal
Investment
Proposal
Portfolio
Assessment
Investment
Proposal
Suitability
Checks
Ingest/
Collect
Consume/
visualizeStore
Process/
analyze
1 4
0 9
5
Data
Answers &
Insights
Automated Investment Proposal
Customer
Bank
Client
Advisor
Portfolio
Assessment
Investment
Opportunities
Investment
Proposal
Customer
Internet
Etc.

23. Architecture: Automated Advisory Platform
Ingest/
Collect
Consume/
visualizeStore
Process/
analyze
Data
1 4
0 9
5
Amazon S3
Data lake
Amazon
EMR
Amazon
Kinesis
Amazon
RedShift
Answers &
Insights
BI / Reporting
Investment
Proposal
Investment
Proposal
Investment
Proposal
Customer
Bank
Client
Advisor
Internet
Amazon Machine
Learning
Amazon
DynamoDB
Amazon S3
Portfolio
Assessment
Investment
Opportunities
Investment
Proposal

24. Use Case: Automated Risk & Compliance
Monitoring and Reporting
Client
Information
Securities
Transactions
Payment
Transactions
Transaction
Monitoring
AML
Monitoring
Suitability
Monitoring
Ingest/
Collect
Consume/
visualizeStore
Process/
analyze
1 4
0 9
5
Data
Answers &
Insights
Risk and Compliance Monitoring
Etc.
Order
Manager
Settlement
System
Etc.
Bank
Transaction
Regulatory
Suspicious
Transactions
Transaction
Report
Suitability
Report
Suspicious
Transactions
Etc.

25. Architecture: Automated Risk & Compliance
Monitoring and Reporting
Ingest/
Collect
Consume/
visualizeStore
Process/
analyze
Data
1 4
0 9
5
Amazon S3
Data lake
Amazon EMR
Amazon RedShift
Answers &
Insights
BI / Reporting
Order
Manager
Transaction
Report
Suitability
Report
Suspicious
Transactions
Etc.
Amazon S3
Settlement
System
Etc. Amazon
QuickSight
Bank

26. Distributed Ledger Technology

27. AWS and Distributed Ledger Technology
AWS operates:
12 Regions
33 Availability Zones
53 Edge Locations
• AWS collaborates with Digital
Currency Group and it’s associated
startups
• AWS provides DCG companies a
secure environment to experiment
with the technology
• DCG companies include: Chain,
RSK Lab, BigchainDB, Blockstream,
Everledger and Onename

28. Remember to complete your
evalua)ons!

29. Thank You!