Financial Services institutions are harnessing AWS capabilities to transform their existing businesses and bring innovative solutions to market. In this session, AWS experts will provide an overview of how public cloud is enabling innovations and improvements, such as new digital channels, core systems modernization, and the integration of machine learning technologies at scale.

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Mark Smith, AWS FSI Business Development Payments
SIBOS 2019
AWS Cloud adoption and the future
of Financial Services

2. Adoption in the Financial Services industry is
accelerating.

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The Financial Services industry continues to evolve.
New forms of risk are
constantly emerging.
Consumers have higher
expectations and more choices.
Data is revealing go-to-market
and cost-saving opportunities.

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Converging forces drive cloud adoption in the industry.
Constant pressure on margins and
resource scarcity
Rising data volumes and need for cost-effective
analytics to enable AI/ML
Regulatory oversight and ever-expanding
reporting obligations
Recognition of superior security and
data privacy in the cloud
Ongoing competition
from new entrants
Legacy processes and infrastructure
hindering innovation

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Where do we go from here?
In 2018, the Financial Services industry is estimated to have spent $4 billion on
industry cloud solutions…and that number is expected to almost double by 2021.
0
1
2
3
4
5
6
7
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2018 2019 2020 2021
Predicted cloud growth in Financial Services
Financial Services
Spendinbillions

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Financial institutions across market segments are transforming on AWS.

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AWS is the cloud of choice for major financial institutions.
A top 10 bank in the US
…is migrating core systems to AWS and planning
to own or lease no data centers by 2019.
A US-based G-SIB
…is running 11 mission-critical
grid/HPC workloads on AWS.
A European G-SIB
…is moving its cash management platform and
a mission-critical pricing engine to AWS.
A top-5 asset manager
…has moved over 200 workloads to AWS
while shuttering its internal private cloud.
A leading global insurer
…delivered a new solution to market on AWS in
three months (as opposed to 18 on premises).
A European G-SIB
…is going all-in on AWS without
building an abstraction layer.

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FinTech startups have also found a home on AWS.
“ ”
Banks aren’t being disrupted by FinTech technology, they’re being disrupted by customer expectations.
— McKinsey & Company
of the 2018
Forbes FinTech 50
use AWS
100%
Launched its exchange on AWS,
including real-time analytics
processed by Amazon Kinesis
Built a secure big data
storage and analytics
system on AWS
Launched a scalable
trading app, transacting
over $1B
Relies on the security best
practices and auditability of
AWS to run its PCI-compliant
payment platform
Adopted AWS for the
service quality and the
resilience it required,
at a variable cost
Uses AWS managed
services to process data
at scale while reducing
operating costs

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AWS is the fabric connecting an expansive partner community
Technology Providers
Systems Integrators & Consultants

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Including Systemically Important Financial Market Utilities.
“
”
Cloud computing has reached the tipping point as
the capabilities, resiliency, and security of services
provided by cloud vendors now exceed those of
many on-premises data centers.
– DTCC, Moving Financial Market Infrastructure to the Cloud

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AWS is investing in the global Financial Services industry.
Compliance best practices
Enablers to help customers address
regulatory frameworks and
maintain a compliance-ready
environment, including FFIEC
Workbook & Audit Guides
Training & certification
Tailored technical, security,
compliance, and business training
to accelerate cloud adoption
Professional Services
Specialists with industry and technology
experience that customers engage to
define and implement a migration or
compliance program
AWS FS Partner Competency
Global program comprising Financial
Services technology and consulting
companies that can help customers
shift critical workloads to the cloud
and comply with industry regulations
In-house industry expertise
Resources include former regulators, compliance
officers, information security experts, governance
and audit professionals, traders, and technology
specialists with industry experience
Industry affiliations
Relationships with leading industry
associations, including SWIFT and FS-ISAC, as
well as a program of AWS-led industry events
Worldwide
Financial
Services

12. Why and how Financial Services companies are
moving to the cloud.

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Disruption is much easier today.
Hospitality Financial ServicesTransportation Grocery
This is something “born in the cloud” companies have already discovered.
Messaging

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Why are so many enterprises moving to the cloud?
To get out of managing
expensive data centers
To access capabilities to
meet net new needs
To transform their culture and
become more digitally native
HPC/Grid
computing
Agile data
analytics
AI/Machine
Learning
Internet
of things
Serverless
computing
Chatbots

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Migrating to the cloud can reduce costs and drive business benefits.
Lower the time
spent on
infrastructure
management
Dedicate more
resources to
innovation
Concentrate on
new business
initiatives
Move from risk-
laden up-front
expense to flexible
variable expense
Go global
in minutes

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Cloud is enabling transformation and innovation in the industry
Customer
experience &
digital channels
As financial institutions better understand their ability to meet regulatory compliance obligations
when operating in the cloud, they are increasingly focused on leveraging the cloud to transform
existing businesses and bring innovative new solutions to market.
Grid &
high-performance
computing
Data lakes &
agile analytics
Core systems
transformation
AI/Machine
Learning
Blockchain
& DLT
Widespread
adoption today
Gaining traction

17. Selection of AWS
customer stories

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Stripe is a payment processor that
wanted to make it easier than ever for
developers to process payments via
web and mobile applications.
Stripe now handles billions of
dollars every year, and the
company is valued at over USD
$22.5 billion.
Using AWS gave Stripe access to
world-class infrastructure that helped
it scale seamlessly and increase
developer productivity.
Online payment processor
Stripe runs its payments platform entirely on AWS
Payment processor Stripe has delivered its PCI DSS-compliant payment platform
on AWS since 2011. The startup relies on the security best practices and easy
auditability of the AWS platform.
Our customers don’t worry about payments, we don’t worry about infrastructure.
– Jorge Ortiz, Manager of infrastructure, Stripe
“ ”

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NuData is using a data lake to fight fraud
Mastercard purchased NuData to improve
its fraud prevention techniques by using
passive biometrics to authenticate
account holders’ identities.
NuData uses an Amazon S3 Data Lake to
store customer data that are collected
and analyzed in real time using Amazon
Kinesis, Amazon Redshift, Amazon EMR,
and Amazon Athena.
By using AWS, NuData is able to
collect and analyze hundreds of
data points, which are then used
to authenticate users and
protect customers from fraud.
Without the tools and techniques we have available on AWS, these
would be much harder problems to solve.
– Robert Capps, Vice President of Business Development, NuData
“ ”
Amazon Simple Storage
Service
Amazon Kinesis

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Nubank grew to 6M+ payments customers with AWS
The Brazilian startup Nubank is the
largest digital bank outside of Asia
and introduced a no-fee credit
card, managed with an app, built
and deployed on AWS in just
seven months.
AWS is helping Nubank jump ahead
of traditional banks with AI/ML
and Big Data capabilities powering
new features in its app.
In 2017, Nubank doubled its customer base to
reach 6M, and over 13M Brazilians have
requested a Nubank card. In 2018 it updated
its credit and debit offering enabling it to
cater to 100 million customers who
currently don't have access to banking
services or transact with low-interest
savings accounts.
The biggest benefit of AWS was time to market. Nubank could only exist because
of the cloud. The resources available that we could use with AWS were much more
advanced than the local cloud providers.
– Marcus Ferreira, Lead Operations Manager, Nubank
“
”

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iZettle boosted performance by 100% with AWS
iZettle offers payment solutions to
individuals and small businesses to
accept card payments through iOS
and Android smartphones and
needed infrastructure that could
support fast growth in payments for
individuals and small businesses
across three continents.
AWS gave iZettle a way to
securely operate its global
infrastructure with no need for IT
staff to travel around the world.
The startup moved its mission-critical
payments platforms to AWS, using
Amazon VPC, Amazon EC2, Elastic
Load Balancing, AWS Auto Scaling,
and more.
Providing a card payment service is a real-time operation that
requires a backend with low network latency. We make this possible
through the global presence of AWS.
– Johannes Löfgren, Head of DevOps and Infrastructure, iZettle
“
”
Amazon EC2 Amazon VPC

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Starling Bank saw a business opportunity in open banking
Mobile-first UK bank
I saw a world where a company would do one thing really, really well, then live
in a marketplace with other services that together, fulfill every banking need.
– Anne Boden, CEO and Founder, Starling Bank
“
”
Starling Bank released their open
API in 2017, and launched
Starling Marketplace to
developers. The bank has
become a launchpad for several
new payments and banking
integrations.
By building a bank with an open API
from day one, Starling became
natively compliant with the PSD2
directive. This put the bank one step
ahead of its established competitors.
Starling, a mobile-first UK bank,
decided to respond to customer
frustrations by building a bank on
AWS that combines the
convenience of a mobile-first
experience with the functionality
of a fully licensed bank.

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B!cash scaled to meet the needs of 40,000+ merchants
Payments processed by B!cash
fluctuate, peaking around the
holiday shopping season.
The startup began using more
AWS services beyond compute,
and reduced their time to
become PCI certified by 60%.
B!cash leveraged the elasticity and
scalability of AWS compute
services to meet payment
demand.
AWS’s biggest benefit is the fast mobility…With AWS, we can take
preemptive action and increase our servers, pre-charge our processing.
– Roberto Marin, Chief Architect, B!cash
“ ”

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Monzo built open APIs to give customers more options
Mobile-first UK bank
…we provided the API anyway because we think it’s where the industry is going.
Now, Monzo users can integrate their accounts with other services. For our tech-
savvy customers, this is great news.
– Matt Heath, Distributed Systems Engineer, Monzo
“
”
Today, Monzo runs 400 core-
banking microservices on AWS that
allow half a million customers to
access their accounts, including
third-party integrations, so they
can instantly manage their money.
Because the bank runs on cloud
infrastructure, as Monzo’s customer
base grows, teams can focus on
developing new features like open
banking integrations, rather than
managing the underlying IT.
Open Banking regulations required
the nine largest UK banks to
provide an API for their users’
account information – Monzo
wasn’t one of these banks, but
decided to build the API on AWS.

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Aella Credit uses AWS to improve identity verification and grow its business
With Amazon Rekognition, Aella
Credit has improved the accuracy
of face verification by more than
40%.
Aella Credit runs its online loan-
processing solution on Amazon
Elastic Compute Cloud instances
and Amazon Relational Database
Service to support database
instances running several versions
of MySQL software.
Identity verification is a major problem for financial services companies in
Nigeria, and we can overcome that challenge by using Amazon
Rekognition. That gives us a competitive edge as a startup.
– Wale Akanbi, CTO, Aella Credit
“ ”
Aella Credit is a financial
technology company dedicated
to providing instant loans to
Africans through a mobile loan
application platform.
Amazon EC2 Amazon RDS

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A leading G-SIB is using AWS to unlock customer data
A leading bank wanted to
better connect its customers to
financial opportunities.
Customers get balance alerts,
overdraw alerts, single-click travel
insurance options, and more
tailored to their preferences.
Leading global retail
and commercial bank
The bank is using AWS to connect in near real time with millions
of retail banking customers in a more personal, engaging,
dynamic, and, most of all, useful way.
Amazon Kinesis AWS Lambda
The bank is using Amazon Kinesis to
stream millions of transaction records
in real-time, and using Lambda to
apply business logic to that data.

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AWS powers global payments.

28. Thank you!