2. Overview
• Cloud Computing is defined as an on demand Internet based computing environment
where you pay only for resources that you use
• Users need not own anything apart from a browser and an internet connection and do
all the required transactions without actually owning the software
• It is an evolution in the way computing can be done and the journey started from
Mainframes to Cloud today
• As per Grail research, what was a joke for CIOs a year back is now number 2 on their
plate
• Cloud can be private, public, community or hybrid
• Cloud based delivery can be classified as Saas, Daas, Paas, Iaas
• Cloud can be hosted or custom developed or it could be a combination of both.
• Key Issues in Cloud is Security as many head Honchos are still not sure how secure it
is, as the hackers are getting better and sophisticated
• It is not New nor is the concept Alien but it is certainly a Hotly discussed topic
Partho H. Chakraborty Cloud Banking
4. Financial Cloud
• When Financial Institutions such as Banks use Cloud for their
financial requirements it is called as Financial Cloud Computing
• The biggest challenge in Financial Cloud is the perceived notion that
the data could be compromised
• It looks to be a trade off between costs and security
• Financial Institutions are joining Open Data Center Alliance, which is
vendor agnostic
• Banks have started using Private Clouds but it is limited and it
needs a lot more to be done
• Central Banks need to take the lead in Cloud Computing as it will
then give the impetus for other banks to follow
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5. Current Problem
• Disparate Systems need integration
• Need to upgrade software periodically
• Need to be BASEL II and IFRS compliant
• Need to adapt to Regulatory Requirements
• Scalability issues
• Risk a major issue
• Software costs and implementation costs going up and so are support costs
• Banks also have costs in IT staff and maintaining hardware, software and network
• Mergers and Acquisitions become a major challenge especially with large banks
having many lines of business and branches
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6. Challenges
• Banks not keen to adopt Cloud
• It looks like a wait and watch game
• No support from Central Banks
• Issues of Regulation and Compliance
• Product Companies averse to lose revenue as it will be Pay and Use
• Customization a Challenge
• Location of Cloud could be a major issue
• Service oriented companies could see a substantial dip in their revenues
• Smaller companies could become non-existent in this new scenario and service
oriented companies looks to bear this brunt.
Cloud Banking
Partho H. Chakraborty
7. Proposed Solution
• For example a company like Google hosts
various applications from various product
companies.
• All access will be through Google UI
• Product companies can be in any location
• All products will be updated with the latest
releases
• Data stays in bank. All they do is access various
services as required
• All transactions will be encrypted
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8. Proposed Solution - Architecture
Central Bank
Google Interface
SAP Oracle Misys
Google Interface
Mobile
Bank A Laptop Desktop ATM Bank B Handset
Data Telephone Data
Note: Google is just mentioned as an example. It can be any company which can host
the service such as TCS, Wipro, etc.
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9. Cloud Banking
• Process flow by client to establish limits
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11. Cloud Banking
• The entire process could be done through the Cloud,
especially if both buyer and Supplier are banking with
then same bank
• Cloud Banking enables the customer and bank to
move on to paperless transaction with a host of
benefits such as:
• Any Time and Saves Time
• Any Where
• Instant Cash
• Error Free Documentation
• Empowering Customers
• Transfer of Money in Moments
• Cloud Banking generates Carbon Credits
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12. Revenues
• Let us take a sample case:
• Product: SAP FICO
• Users: 10
• License Fees: ` 100,000 per user/per annum
• ` 1,000,000 per annum
• Banks: 10
• Users: 20
• Hours : 6
• Days: 200
• Revenue: ` 5,000,000; ((100,000/24)x6x200)
• Sharing: 20% to Google
• Net Revenue: ` 1,000,000
This is a very simple case but it highlights the savings to bank and that
this business would earn in volumes
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14. Summing Up
• Brand value of company would increase
• It would truly be a pioneer in Cloud Computing
with others emulating it
• The beginning would be from non-core products
but eventually handling all the bank’s requirements
• Smaller Banks would be trendsetters and the
bigger ones would follow
• Pricing, Convenience, Security, Customization and
Robustness would be the key issues
Cloud Banking generates Carbon Credits thus greening the
environment
Partho H. Chakraborty Cloud Banking
15. Thank You
Partho H. Chakraborty
A – 305, DSR Spring Beauty Apts.,
124/1, ITPL Road,
Brookfield, Kundalahalli,
Bangalore – 560 037
INDIA
Tel: +91 - 80 – 420 50293; Cell: +91 - 99863 22504
Email: parthohc@airtelmail.in; parthohc@rediffmail.com
