Top 10
Move to the Cloud for High-Performance Trading and Execution
Published
1 month agoon
By
admin
The cloud is rapidly becoming the go-to for FinTech start-ups, driving and supporting innovation on electronically traded markets. Traditional financial trading firms, from exchanges and data vendors, to brokers, hedge funds, and even proprietary trading firms, are rapidly embracing cloud computing, but how effective is it for high-performance execution? Jeff Mezger, Vice President of Product Management at TNS, considers the challenges and opportunities when embracing a cloud strategy for low-touch to no-touch trading strategies.
Firstly, firms need a clear strategy for cloud implementation and the right people, with the right skills to facilitate an effective transition. The cloud can be cost effective to put data in and keep it there, however, taking data out is expensive. Many customers look at the cloud as something that makes business simpler and lowers costs, but firms still need to understand how to operate in a business-as-usual capacity, while simultaneously adopting cloud services where appropriate. If this is not a core competency, valuable time and resources will be used in-house trying to figure it all out.
Public cloud services are great for big data analysis and help financial firms store, move, and manage large amounts of data, allowing them to make more informed trading decisions through effective data analysis. It is also good for transferring large volumes of data between regions, like London and New York, and can support adherence to different regulatory requirements, for example, by enabling real-time monitoring of trading activity. The nature of cloud-delivered services also enables ‘dial-up’ resource on demand, to innovate and pivot to a new initiative when needed, while creating alternative options for ensuring operational resilience.
The cloud is not one general thing; there are different factors to consider, especially geography. Different providers have physical locations from where their cloud solution operates, so understanding that there is a geographic element to any cloud offering is fundamental. Most trading strategies require a highly resilient and scalable infrastructure. Many factors can affect low latency trading(https://tnsi.com/solutions/financial/connectivity/), especially hardware location, the number of network hops, deterministic network latency, the hardware specification, and the resiliency of an infrastructure’s architecture, including both the scale and power of network connectivity.
Large scale public cloud providers may currently struggle to accommodate the particular needs of low-latency electronic trading and co-located infrastructure required by electronic traders. So, typically traders have used the cloud for less latency-sensitive purposes, like risk management, data storage, development work and modelling new strategies.
TNS Cloud – Server Management, is a breakthrough end-to-end solution that aims to bring the benefit of cloud to low-latency trading infrastructures and co-location environments. It delivers a full-suite of trading infrastructure and support to buy- and sell-side institutions and their vendors. Designed for high-performance exchange trading, utilizing TNS’ bare metal servers and ultra-low latency trading connectivity, TNS Cloud – Server Management combines the company’s Dedicated Server hosting capabilities with hands-on server management. This end-to-end offering helps to dramatically reduce clients’ trading center complexity and costs, allowing firms to focus their human resources on mission-critical business goals and go-to-market opportunities.
“Up until now, trading organizations often outsourced cloud data center services, but still had to manage their own server resources. With this new Server Management, paired with TNS’ established co-location capabilities, we’re reducing complexity and breaking new ground by providing both infrastructure and end-to-end server management.” Jeff Mezger, Vice President of Product Management at TNS.
Traders are racing toward enhanced cloud adoption. However financial institutions need to be strategic in their approach to transitioning to the cloud, in order to maximize the benefits and continually review and revise their adoption decisions. They need to consider working with experts as this will ensure that, as technology evolves, today’s choices remain appropriate and adaptable to a dynamic future.
Jeff Mezger is Vice President of Product Management at TNS with responsibility for its managed services for the financial industry. He oversees product development and strategy for market data, online and data center services.
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Banking
Emerging technology will power long-term sustainability within the UK banking industry
Published
3 days agoon
September 26, 2023By
admin
By Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware Mobiquity.
Sustainability has been a big focus for the banking industry in recent years, with the issue becoming increasingly important for consumers. It’s no wonder that sustainability has become baked into the purposes of almost every bank, from Natwest to HSBC.
However, the economic uncertainty of the last year has led to many banks putting it on the back burner. Challenging market conditions have forced financial institutions to change their priorities to concentrate on protecting the bottom line. Our research found there’s been a significant drop in the number of UK banks saying that sustainability remains a key business strategy. 12 months ago it was a major priority for 100 per cent of banks, but now that number has shrunk to 60 percent.
Whilst it’s understandable that banks are feeling the pressure at the moment, there’s a risk that they will miss out if they hit the pause button. From cost savings brought by innovative digital products and services, to improved brand reputation and increased profitability, there are a lot of longer-term benefits they could be failing to unlock. So how can they keep moving forward?
Losing momentum
Emerging technology holds the key to their success, with the power to disrupt current behaviours and promote a more sustainable culture. Banks are already aware of this, with 76 percent using digital transformation to drive sustainability, but a lack of leadership has made it difficult to build momentum in the last 12 months. Currently just over half (54 percent) of banks have tasked an executive at board level with overseeing sustainability – way down from 83% just 12 months ago.
This lack of board authority means banks are struggling to engage the entire organisation to move ahead with sustainable initiatives. As a result, almost two-thirds of banks are seeing progress slow, admitting they are not actively taking steps to foster more sustainable behaviours throughout the organisation. Those that have taken their foot off the gas need to find a way to move forward again.
No time for standing still
Banks know that technology can drive sustainable behaviour. For instance, many of them are already encouraging their workforce to work remotely, as a way of reducing travel. This has two benefits – not only does it cut the costs of running physical offices at full capacity, but also reduces the bank’s carbon footprint. There has never been a better time to invest in technology to drive more sustainable behaviours.
New digital products and services can also extend the benefits beyond employees to encompass the wider customer base. A fair number of banks are already investing to make this happen. More than a third (35 percent) of banking organisations are using Machine Learning (ML), Artificial Intelligence (AI), cloud and analytics to make digital services more easily accessible. Investment in these technologies will be critical as the number of physical bank branches continues to decrease, with figures from Which? showing this is taking place at a rate of 54 branch closures each month.
Hitting environmental and social responsibility goals
Emerging technologies can also help banks keep pace with tightening ESG rules and regulations. Banks are faced with demands for increasingly granular reporting and transparency on ESG – demanding a new approach. In line, 41% of them are developing data visualisation tools to improve stakeholder engagement and understanding of ESG risks and opportunities, while 37% are using machine learning and artificial intelligence to identify and track ESG risks and opportunities across a wide range of data sources.
More than one in three are also using the blockchain to improve transparency and traceability in supply chains, and implementing digital tools and platforms to collect, analyse, and report ESG data and metrics in a standardised and consistent manner. All these applications of emerging technology will put banks on track to address global environmental challenges and unlock a greener future.
Long-term sustainability
As the economic pressures hopefully start to subside, increasing numbers of banks will start investigating how they can use emerging technologies to provide engaging experiences and value-added services for customers, to drive greater revenue and efficiencies.
Whilst banks are right to focus on their revenue under difficult trading conditions, it’s important they don’t miss out on the long-term benefits that sustainability can bring. To capitalise on this, banks must keep pushing the boundaries and invest in emerging innovations to drive more sustainable banking behaviours, benefiting the planet and driving great digital experiences for customers.
Banking
The Future of Banking: Streamlined Cash Management for ATMs
Published
3 days agoon
September 26, 2023By
admin
Gaetano Ziri, Innovation Manager, Auriga
“Maintaining free access to cash for the community demands robust strategies to mitigate the escalating costs incurred by banks and ATM operators in handling cash. A pivotal step in this direction is modernising cash management systems to foster efficiency and reduce operational costs.
Back in 2018, a report by McKinsey underscored the urgent need to overhaul the largely manual and disjointed systems relied upon by nearly half the banks worldwide for forecasting cash requirements at branches and ATMs. Despite the decrease in cash usage noted by the European Central Bank, the cost of managing cash has not abated, primarily due to surging labour costs.
To reconcile the demand for free access to cash with the requisite cost reductions, banks are increasingly turning towards tech-driven solutions in cash management that elevate service levels while driving down expenses.
The Complex Landscape of ATM Network Management
Operating a vast ATM network can be a double-edged sword for banks, simultaneously offering customer convenience and engendering considerable challenges, including substantial cash handling, management, transit and security costs. Each ATM embodies a multifaceted operation involving numerous cash transfer operatives, necessitating a coordinated strategy to forestall costly inefficiencies.
The remedy is a holistic, data-centric approach to streamline the management of intricate ATM networks and counter the escalating costs associated with cash access. The merits of such an approach, grounded in continuous data collection and analysis across ATM networks, encompass:
- Strategic Planning: Leveraging real-time data to craft bespoke strategies for individual branches or regions, assuring optimal cash flow management and averting superfluous cash loading orders.
- Operational Transparency: Facilitating stakeholders with instantaneous access to accounting and operational data relating to cash supply chains, thereby enabling timely interventions and adaptations.
- Enhanced Customer Experience: Minimising ATM downtimes to guarantee uninterrupted cash access to customers, enhancing their banking experience.
Innovations in Cash Management: A Closer Look
So, how does this revolutionary cash management technology function? The answer lies in a series of sophisticated features that employ cutting-edge predictive analytics, automation, and data-driven decision-making:
- Predictive Analysis: Forward-thinking solutions predict cash necessities of distinct units, offering precise demand and cash flow projections by considering variables such as seasonal fluctuations, holidays, and daily usage trends.
- Automation and Monitoring: Swapping manual processes or basic mathematical functions with modern software solutions for cash management ushers in real-time monitoring and efficient intervention planning, which can potentially diminish order management costs by a significant margin, whilst improving precision and operational fluidity.
- Optimised Cash Transit Management: Utilising predictive analytics to strategically plan cash restocks, thereby reducing the likelihood of ATMs depleting their cash reserves and improving customer satisfaction.
- Data-Driven Decision Making: Availing a comprehensive dashboard to generate timely reports and monitor critical metrics facilitates strategic decision-making grounded in accurate data, substantially reducing residual cash stock in ATMs.
As the financial landscape evolves, banks and financial institutions are impelled to adapt and innovate. Traditional cash management approaches are increasingly becoming outdated, paving the way for modern, data-driven solutions. These not only embody a commitment to technological advancement but also signify a strategic movement towards future readiness.
Embracing such technologies promises streamlined operations, substantial cost reductions, and a superior customer experience, setting a new standard in ATM network management.”
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