Big Data and Analytics on AWSPowering the financial services industry

Craig Stires

Head of Big Data and Analytics, AWS APAC

Time : 11:20 – 11:50

Big Data and Analytics on AWS

Powering the financial services industry

AGENDA

• What is driving Big Data investments in financial services

• Building a value-focused data and analytics platform

Big Data and Analytics on AWS

Powering the financial services industry

Three trends that have brought FSI customers to AWS

New market

demands

Big Data and Analytics on AWS

Powering the financial services industry

Trends that are driving change in Financial Services

• Competitive landscape has shifted from Tier 1 / Tier 2 players to new

entrants. These new entrants focus on solving specific needs of

customers, rather than holistic financial services

• FinTech for payments, investment advice, forex

• Retail for insurance, lines of credit

• Telco for stored credit, transfers, payments

• The willingness of customers to diversify consumption of financial

services, is driven by availability of higher value / ease of access

• 66% of Millennials open to using a non-traditional provider for

financial service needs, 62% of Gen Xers, and 41% of baby boomers

[Raddon]Customers moving to AWS Cloud for INNOVATION

”

“ • Stripe wants to make it easier than ever for

developers to process payments on their web

and mobile applications

• Stripe has delivered its PCI-compliant

payment platform entirely on AWS, relying on

the security best practices as well as easy

auditability of the AWS platform

• Key AWS technologies are VPC for security

and compliance and Redshift for petabyte-

scale data warehousing

Stripe securely vaults credit cards and analyzes payments on AWS

Stripe now processes billions of dollars a year for

thousands of businesses, from newly-launched start-

ups to Fortune 500 companies. It is based in San

Francisco, CA.

AWS operates at a scale and

sophistication that we could

never hope to reach on our

own.

Jorge Ortiz

Manager of Infrastructure

”

“

”

“ • Robinhood’s lean staff used AWS to create a

massively scalable securities trading app with

strong built-in security and compliance

features that supported hundreds of thousands

of users at launch

• Saved customers $22 million in commissions

since launch, and transacted over $1 billion.

All of this scaled up with 2 DevOps resources

• Amazon Redshift has allowed the data science

team to identify fraud and fight money

laundering, without needing to hire a data

science infrastructure team

Robinhood Launches Popular No-fee Brokerage Trading Platform on AWS

Robinhood is an investment platform that offers free

trades for everyone. It is based in Palo Alto, CA.

We can look at real-time

analytics and behaviors on our

platform, that wouldn't be

available at our scale if we

weren't using AWS.

”

“

Miles Wellesley

Head of Business Development

Speed to

deliver

Big Data and Analytics on AWS

Powering the financial services industry

Trends that are driving change in Financial Services

• Speed to roll out new services should be measured in weeks, not

months

• Responding to customer requirements must be fast and effective, or

risk reputation loss through social channels

• Customer/market acquisition through traditional means is far too

expensive. It can cost 5X to acquire a new customer, compared to

retaining an existing one

• Business users must be able to move from recognizing an

opportunity to enablement to execution, without IT bottlenecks

Customers moving to AWS Cloud for AGILITY

Regulator for all securities firms in USA

Financial Industry

Regulatory Authority - an

independent,

nongovernmental

regulator. Protects

investors by regulating

brokers and by monitoring

trading

Monitors over 6 billion

shares traded on the

stock market each day

Handles more “big data”

on a daily basis than the

Library of Congress or

Visa® - to build a holistic

picture of the trading

market

https://aws.amazon.com/solutions/case-studies/finra/

”

“ • Wanted a platform to provide greater speed and

scalability for analyzing petabyte-scale data

• Migrating mission-critical operations to AWS

• Can provide analysts with real-time access to 75

billion records collected daily

• Can move faster, more efficiently in serving core

business processes

FINRA Performs Daily Petabyte-Scale Analysis on Trading Data Using AWS

The Financial Industry Regulatory Authority (FINRA) is

the largest independent regulatory authority in the

United States. It is based in Washington, D.C.

We chose AWS to deliver

innovation at a much larger scale

and much faster to our

core business.

Saman Michael Far

Sr. Vice President of Technology

”

“

Operates financial exchanges around the world

Leading stock index provider with

41,000+ INDEXESacross asset classes and

geographies

Provides technology, trading, intelligence,

surveillance, and listingservices

100+ data product offerings supporting

2.5+ million investment professionals and users

in 98 countries

They wanted to accelerate innovation and time to market, and also lower their

data warehouse costs without compromising on performance of their analytics

tools and services, or jeopardize the security of the sensitive data they collect.

• Costly legacy warehouse ($1.16M /yr)

• Limited capacity (1 year of data)

• High volume of data (4-8B rows daily)

• Disparate historical data sources

OUR GLOBAL PLATFORM

CAN HANDLE MORE THAN

1 MILLIONMESSAGES/SECOND

AT SUB-40 MICROSECONDS

AVERAGE SPEEDS

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

Data

1 40 9

5

Amazon

Direct Connect

Amazon S3

Data lakeAmazon

RedShift

virtual private

cloud

Answers &

Insights

Amazon SNS

Amazon SQS

Client Alerts

End of day analysis

Listed companies reports

Trade anamolies

…

Daily trades

Reprioritization

of spend

Big Data and Analytics on AWS

Powering the financial services industry

Trends that are driving change in Financial Services

• The cost models of financial services have changed.

"Around 15% of bank branches tip into unprofitability" [Economist]

• Physical operations within the business are being digitized, replaced,

or streamline to shift spend to value creation for customers

• Costs must fundamentally change to compete with digital providers

• Branch experience moved to mobile devices

• Machine learning to replace routine customer service

• Data centers significantly scaled down

• Overprovisioning of data processing capacity selectively

• Maintenance and administration of IT systems reduced

Customers moving to AWS Cloud for OPTIMIZATION

Suncorp is moving "all-in" on cloud.

Insurance Policy Insurance Claim Core Banking Life Admin

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

Data

1 40 9

5

Amazon S3

Data storage

Amazon EMR

Amazon RedShift

Answers &

Insights

Extend life of legacy

systems

Break tight dependency of

business users to legacy

data systems

Self-service BI / analytics

Data exploration

Data modeling

Unstructured data usage

…

Transactions

CRM

Common Modernization / Offload Pattern

Data warehouseAmazon EMR

Amazon S3

Data storage

BI / Reporting

Big Data and Analytics on AWS

Powering the financial services industry

AGENDA

• What is driving Big Data investments in financial services

• Building a value-focused data and analytics platform

A platform to build business outcomes from data

Purchases

Movement

Influence

Ingest/

Collect

Consume/

visualizeStore

Process/

analyze

1 40 9

5

Revenue Lift

Market acquisition

Customer delight

Brand advocacy

Risk management

Inventory

optimization

Supply chain

efficiency

...

Big Data and Analytics on AWS

Powering the financial services industry

Amazon Redshift Amazon Elastic

MapReduce

Data Warehouse Semi-structured

Amazon Glacier

Use an optimal combination of highly interoperable services

Amazon Simple

Storage Service

Data Storage Archive

Amazon

DynamoDB

Amazon Machine

Learning

Amazon Kinesis

NoSQL Predictive Models Other AppsStreaming

Big Data and Analytics on AWS

Powering the financial services industry

Administration

& Security

Access

Control

Identity

Management

Key Management

& Storage

Monitoring

& Logs

Resource &

Usage Auditing

Platform

Services

Analytics App Services Developer Tools & Operations Mobile Services

Data

Pipelines

Data

Warehouse

Hadoop

Real-time

Streaming Data

Application

Lifecycle

Management

Containers

Deployment

DevOps

Event-driven

Computing

Resource

Templates

Identity

Mobile

Analytics

Push

Notifications

Sync

App

Streaming

Email

Queuing &

Notifications

Search

Transcoding

Workflow

Core

Services

CDNCompute(VMs, Auto-scaling

& Load Balancing)

Databases(Relational,

NoSQL, Caching)

Networking(VPC, DX, DNS)

Storage(Object, Block

and Archival)

Infrastructure

Availability

Zones

Points of

PresenceRegions

Enterprise

Applications

Business

Email

Sharing &

Collaboration

Virtual

Desktop

Technical &

Business Support

Account

Management

Partner

Ecosystem

Professional

Services

Security &

Pricing Reports

Solutions

ArchitectsSupport

Training &

Certification

Big Data and Analytics on AWS

Powering the financial services industry

Big Data and Analytics on AWS

Powering the financial services industry

Trusted by Global Financial Services Institutions & Enterprises

Big Data and Analytics on AWS

Powering the financial services industry

How would you like to take your business forward today?

New market

demands

INNOVATION

Speed to deliver

AGILITY

Reprioritization of

spend

OPTIMIZATION

Thank you