AWS in Financial Services

Felix Candelario

Global Solutions Architect – Financial Services

Amazon Web Services (AWS) provides flexible, scalable, and cost-effective IT infrastructure for businesses of all sizes around the world.

Why Are Financial Services Firms Choosing Amazon Web Services?

… the same reliable, secure technology platform used to power Amazon.com’s global web properties and over 1 million other customers, including firms of all sizes across all segments of the Financial Services industry.

Financial Services grid computing reference architecture

AWS AT-A-GLANCE

What Sets AWS Apart

Building and managing infrastructure since 2006

70 services to support any workload

History of rapid, customer-driven releases

13 regions, 35 availability zones, 56 edge locations

51 proactive price reductions to date

Tens of thousands of partners; 2,700+ Marketplace products

Experience

Service breadth & depth

Pace of innovation

Global footprint

Pricing philosophy

Ecosystem

Gartner 2015 Magic Quadrant for Cloud Infrastructure as a Service

Gartner “Magic Quadrant for Cloud Infrastructure as a Service,” Lydia Leong, Douglas Toombs, Bob Gill, May 19, 2015. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available at http://aws.amazon.com/resources/analyst-reports/. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Administration& Security

Access

ControlIdentity

Management

Key Management

& Storage

Monitoring

& Logs

Resource &

Usage Auditing

PlatformServices

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

CoreServices

CDNCompute(VMs, Auto-scaling, and

Load Balancing)

Databases(Relational, NoSQL, and

Caching)

Networking(VPC, DX, and DNS)

Storage(Object, Block, EFS,

and Archival)

Infrastructure

Availability

Zones

Points of

PresenceRegions

EnterpriseApplications

Business

Email

Sharing &

Collaboration

Virtual

Desktop

Technical & Business Support

Account

Management

Partner

Ecosystem

Professional

Services

Security &

Pricing Reports

Solutions

ArchitectsSupport

Training &

Certification

Machine

Learning

A Broad Collection of Services

Our Global Footprint

13 Regions

35 Availability zones

56 Edge locations

Over 1 million active customers across 190 countries

2,300+ Government Agencies

7,000+ Educational Institutions

1,000+ Financial Services Organizations

Everyday, AWS adds enough new server capacity to support Amazon.com when it was a $7 billion global enterprise.

A Focus on Security & Enabling Compliance

“Based on our experience, I believe that we can be even more secure in the AWS cloud than in our own data centers.” – Tom Soderstrom, CTO, NASA JPL

AWS provides the same, familiar approaches to security that companies have been using for decades with increased visibility, control, and auditability.

Visibility

View your entire infrastructure with one

click

Auditability

Control

Deep insight with AWS CloudTrail

You have sole authority on where data is stored

Shared responsibility model

3rd Party Validation – Certifications for Workloads that Matter

On-Demand

Pay for compute

capacity by the hour

with no long-term

commitments

Ideal for Development &

Test

Purchase Options to Support Different Needs

Reserved

Make a low, one-time

payment and receive a

significant discount on

the hourly charge

Ideal for baseline

workloads

Spot

Bid for unused capacity,

charged at a Spot Price

which fluctuates based

on supply and demand

Ideal for Test scenarios,

Simulations

Dedicated

Launch instances within

Amazon VPC that run

on hardware dedicated

to a single customer

For highly sensitive or

compliance related

workloads

Free Tier

Get Started on AWS

with free usage & no

commitment

Good for Initial

evaluation

An Expansive Ecosystem

Tens of thousands of the world’s largest technology and consulting companies

28 Global premier consulting partners

2,700+ products available for 1-click deployment across 35 distinct product categories

Customers run over 205m hours of software per month

AWS IN FINANCIAL SERVICES

AWS is trusted by Financial Services Institutions

around the world to help them transform legacy IT

infrastructure and bring new, innovative ideas to

market faster.

AWS – Trusted by Financial Services Institutions Worldwide

Highlighted Customer Stories – Capital Markets

– Global Investor Communications and Technology Solutions

Broadridge, in partnership with Pitney Bowes, in June 2014 launched a technology platform delivered through AWS named Inlet to make it easier for companies to provide millions of consumers access to their most important documents from hundreds of providers in just a few clicks. Broadridge will use Inlet to deliver investment industry content through its relationships with thousands of financial services companies, including banks, broker-dealers, mutual funds, as well as corporate issuers. Content will include monthly statements, trade confirmations, tax documents and regulatory disclosures.

– Global Exchange Group

In 2014, Nasdaq replaced the existing data warehouses for its US equities and options exchanges with Amazon Redshift. On a nightly basis, Nasdaq loads approximately 5 billion rows of data into Redshift within a 4-6 hour window. Amazon Redshift now powers a number of data analytics applications at Nasdaq, including its billing system for US customers. In 2015, Nasdaq is expanding its use of Redshift to its global exchange properties.

– Global Trading Solutions

Trading Technologies, a leading global provider of a derivatives trading platform to the financial services industry, has built their next-generation trading platform using a hybrid architecture, with its backbone built on AWS spanning all nine publicly available AWS regions which are then connected to co-located infrastructure at each of the global exchanges to which Trading Technologies provides trading access to its customers.

Customer Spotlight: Broadridge Financial Solutions

“As a new business within Broadridge, it’s important that we are able to reduce upfront costs while ensuring peak scalability. AWS’s ability to scale infinitely and provide a robust suite of services and capabilities meets our needs perfectly.”

- Robert Krugman, Vice President of Digital Strategy

BANKING & PAYMENTS

Customer Stories & Case Studies

Highlighted Customer Stories – Banking/Payments

Suncorp is a diversified Australian financial services company which runs a complex and expensive IT environment to support 14 brands and 4 lines of business in 5 countries. Recognizing that the company’s talent was its competitive advantage, Suncorpadopted a culture of innovation to re-imagine the IT landscape. By choosing AWS to support Agile principles and practices, Suncorp was able to launch a working virtual private cloud and virtual data center in under three months and plans to move 2,000 applications to AWS.

– Finance, Insurance and Banking (Australia)

– European Headquartered Payments Platform[Disguised]This European headquartered customer leverages AWS for its payments platform in multiple countries across Europe and the globe.

– European Headquartered Multinational Banking Group[Disguised]This European headquartered multinational customer is leveraging AWS to transform how technology is delivered in order to enhance the customer experience with a focus on digital channels, agile development/deployment, and new products and services.

Customer Spotlight: Simple

“AWS allows us to stay nimble in an industry that, traditionally, moves very very slowly. And, basically allows us to focus on the product, focus on making the experience better for the customer, instead of on other less important $#!+.”

- Tom Wanielista, Engineer

Simple is an online bank that uses AWS to run its virtual banking platform and meet payment card industry (PCI) data security standard (DSS) compliance for its development and production environments. By using AWS, Simple can automate processes that once took months to complete and instead focus on its customer service rather than managing IT infrastructure.

Customer Spotlight: Capital One

“Why did we pick AWS for Capital One? We believe we can operate more securely in their cloud than in or own data centers.”

- Rob Alexander – CIO, Capital One

Capital One is one of the US’s largest banks and offers credit cards, checking and savings accounts, auto loans, rewards, and online banking services for consumers and businesses. Capital One is using AWS as a central part of its technology strategy, and plans to reduce its data center footprint from 8 to 3 by 2018. It is using or experimenting with nearly every AWS service to develop, test, build, and run its most critical workloads, including its new flagship mobile-banking application.

“Our use of AWS is a great draw for talent. We have thousands of open roles we need to fill at Capital One, and we want to attract great engineering talent to come work in our organization and join us on the mission that we’re on.”

- Rob Alexander – CIO, Capital One

Customer Spotlight: Coinbase

Coinbase is the largest consumer bitcoin wallet in the world and the first regulated bitcoin exchange in the United States. The company, which supports 3 million global users, facilitates bitcoin transactions in 190 countries and exchanges between bitcoin and flat currencies in 26 countries.

“We control hundreds of millions of dollars of bitcoin for our customers, placing us among the largest reserves in our industry. Just as a traditional bank would heavily guard its customers’ assets inside a physical bank vault, we take the same or greater precautions with our servers.” – Rob Witoff, Director

“I consider Amazon’s cloud to be our own private cloud, and when we deploy something there, I trust that my staff and admins are the only people who have access to those assets.” – Rob Witoff, Director

INSURANCE

Customer Stories & Case Studies

Highlighted Customer Stories – Insurance

– Global Risk Management, Insurance and Reinsurance

Aon Benfield Analytics offers industry-leading catastrophe management, actuarial, rating agency advisory and risk and capital strategy expertise. By using AWS GPU instances, Aon Benfield is able to perform actuarial calculations with greater computing power, in shorter time frames, and for less cost than on-premise deployments and CPU cores.

– Multinational Mortgage Insurance, Reinsurance and Other Financial Services

This multinational customer’s loan information platform runs entirely on AWS and leverages a large portfolio of AWS services to help automate the end-to-end process. Applications interact with the loan platform to ingest large amounts of data directly into Amazon S3, taking advantage of the storage service’s scalability and security. A workflow process is kicked off to classify andextract information from the documents and populate data stores to support transactional and analytical functions. The platform leverages the built-in security features offered by AWS along with third-party solutions for above the hypervisor controls to meet the stringent security needs of the customer’s business partners.

[Disguised] – Fortune 500 Multinational Insurance and Other Financial Services

This multi-national financial services provider uses AWS to perform its US Federally-mandated Comprehensive Capital Analysis and Review (CCAR) stress test calculation. CCAR is an annual exercise by the US Federal Reserve to assess whether the largest bank holding companies operating in the United States have sufficient capital to continue operations throughout times of economic and financial stress and that they have robust, forward-looking capital-planning processes that account for their unique risks.

Customer Spotlight: Radian Group

Fundamentally, AWS changes the way we look at technology as an enabler of our business –it’s allowing engineers to become artists!

- Soofi Safavi, CTO

REGULATORY AGENCIES

Customer Stories & Case Studies

FINRA, the primary regulatory agency for broker-dealers in the US, uses AWS extensively in their IT operations and has migrated key portions of its technology stack to AWS including Market Surveillance and Member Regulation. For market surveillance, each night FINRA loads approximately 35 billion rows of data into Amazon S3 and Amazon EMR to monitor trading activity on exchanges and market centers in the US.

Highlighted Customer Stories – Regulatory Agencies

– U.S. Regulator

In response to the May 6, 2010 Flash Crash in U.S. markets, the SEC used Tradeworx and AWS to create its Market Information Data Analytics System (MIDAS), which enables the agency to collect and analyze billions of rows of data and to reconstruct any market event down to the individual record, analyzing more than 3 billion data points in seconds rather than weeks or months.

– U.S. Regulator

For our market surveillance systems, we are looking at about 40% [savings with AWS], but the real benefits are the business benefits: We can do things that we physically weren’t able to do before, and that is priceless.” – Steve Randich, CIO

Cost Effective Records Retention with Glacier Vault Lock

• Designed to meet US SEC, FINRA, and CFTCrecords retention requirements (3rd party attested)

• Choose your own D3P provider and assign credentials with AWS Identity Access Management

• $0.007/gb/month

AWS Import/Export Snowball• Petabyte-scale data transportation solution• Extremely Scalable• High Speed• Tamper Resistant & Secure• Low Cost• Easy Data Retrieval

FinTech – Reshaping the Industry

• 12K+ active FinTechstartups in the world as of today (McKinsey)

• Investment in FinTechtripled in 2014 to $12.2B (Accenture)

• Most saturated segments are Lending and Payments (McKinsey)

• Chart Source: Venture Scanner

“Banks aren’t being disrupted by FinTech technology, they’re being disrupted by customer expectations.”

- McKinsey & Company

FinTech - continued

Personal Investing Wealth Management Banking

Bitcoin/Blockchain Brokerage Investing

• Provides free access to financial services data sets for development/testing to FinTechstartups• 13 data partners and growing, including:

•AWS provides AWS credits, support, and mentorship via AWS Activate

AWS in FinTech

Why Are Financial Services Companies Choosing AWS?

Regulatory Compliance Continues to Drive Expense

A Desire For Increased Wallet Share is Driving a Focus on Innovation

Increasing Amounts of Data, Finite Resources for Analytics

Digitization and Disruptive Technology are Accelerating Transformation

Security, Compliance, and Reduced Cost

Ability to Bring New Ideas to Market Faster

Highly Scalable Infrastructure for Analytics that Matter to the Industry

Ability to Transform the Enterprise & the Industry

What are the Keys to Success for Adoption, for FSIs?

Executive-level Sponsorship

Dedicated Resources

Real Projects that Matter to the Organization

A Vision for What Success Looks Like

Senior Leaders Who Understand the Importance of, and Support Cloud Adoption

Internal FTEs, Budgeted Funds, External Partners When Warranted

No “Science Projects”

Legacy IT Transformation, Innovating to Improve Customer Experience, or Both?

Thank You!