Connect with us

Finance

WHY DATA IN MOTION IS KEY FOR HYBRID CLOUD STRATEGIES IN THE FINANCIAL SERVICES INDUSTRY

Published

on

by Lyndon Hedderly, Director, Customer Solutions at Confluent

 

As we look back on the year one thing is clear, the demand for personalised experiences from customers has only increased as has the pressure for businesses to deliver on that expectation. That is no different for the financial services industry especially when you consider consumers’ and businesses’ banking habits shifting more and more online. To be able to stay competitive brands have turned to technology to deliver these modern services and this has included hybrid cloud strategies.

While the shift to the cloud started long before the Covid-19 pandemic broke out, these past few years have seen significantly accelerated growth. The reasons are obvious: numerous operations moved from analog to digital, and from batch to real-time, while at the same time, businesses needed to maintain operations supporting all realms. Hybrid cloud offered an excellent solution with clear benefits, including increased efficiency and flexibility. The issue now is that many businesses are yet to maximise the promised value from their hybrid cloud investments.

Lyndon Hedderly

Hybrid cloud adoption isn’t easy as there are numerous challenges that businesses can face when they’re trying to get hybrid cloud right. One of the biggest roadblocks is successfully facilitating the data exchange between on-premises infrastructure and the cloud. This is key especially for the financial services industry with the massive investments in owned datacenters, the sheer amount of data held and being one of the industries that is most heavily regulated.

So how do businesses ensure they get the value from their hybrid cloud investment and how do they get the data exchange between on premise and cloud right?

 

Establishing the data issue with hybrid cloud

While each hybrid cloud architecture is different for each business, they all share the same goal: retaining the embedded value of on-premises IT equipment, and leveraging the scale and agility of the cloud and fully-managed services at the same time. These attributes are key for businesses and industries that heavily rely on intricate legacy systems, but new applications built in the cloud might still need to connect to historical data sitting in data centres.

The major pain point is how the data is shared between the different systems and between legacy systems and cloud apps. These integrations are typically highly inefficient  and that leads to major issues and causes system friction leading to errors that businesses want to avoid. A simple example is that a bank has one customer’s address details held on file in the cloud but their other historical data is held on-premise. It’s critical that the bank can aggregate and access data from all their systems when talking to this one customer to reduce delays or errors, such as providing incorrect information. Either of these might cause the customer to jump ship and take their business to another bank.

 

Handling data in a new way

The above example clearly demonstrates that a new approach is needed to manage large amounts of dataacross systems. It requires an approach that can evolve and optimise hybrid cloud models over time and at scale. The innovation lies in a new way of handling data so that it supports the collection of a continuous flow of data from across the business, between apps, databases, SaaS layers and cloud providers. Similarly to the human nervous system, a data platform needs to act as an instant link between all of a company’s footprints. The platform has to tie together different parts of the business and unite all applications into one coherent network that can react and respond intelligently in real-time.

Specifically for hybrid cloud, this sidesteps the capacity issues involved in keeping on-premises and cloud infrastructure running in unison, minimising the bandwidth and complexity needed for data transfer. This new way of handling data might seem complicated, but it doesn’t have to be. By partnering with the right experts and technologists, businesses can implement a platform and layer that lets data move fluidly whether it resides in the cloud or on-premise.

 

What does the future hold for hybrid cloud?

It’s clear that businesses who want to deliver modern services for modern customers will be able to achieve that through hybrid cloud strategies. The key to ensuring hybrid cloud performs to the highest standard it can requires a new mindset within each and every business in how data is exchanged and handled between legacy and cloud apps and systems. Organisations can sweat their assets, but the rapid growth in data requirements means that scaling applications within data centres is no longer cost effective.

Time is of the essence for the financial services brand to be able to stay competitive while creating the right experience for their customers. And it will be this central nervous system within hybrid cloud that will enable that sort of success in today’s environment.

 

Finance

astrantiaPay Selects SaaScada to Enrich Swiss Landscape of Business Payments and Fill Market Gap

Published

on

By

Swiss financial firm, astrantiaPay, to use SaaScada’s cloud-native core banking engine to simplify cross-border payments for SMEs and facilitate international trade and services across the old and new economies

 Cloud-native core banking engine, SaaScada, today announced it was selected by astrantiaPay to launch a Swiss point of contact for international businesses looking to open and run corporate bank accounts in Switzerland. Once regulatory approval is in place, astrantiaPay will provide mission-critical payment services to sophisticated Swiss, European, and global companies.

“Promoting SMEs is high on the agenda of policymakers, but the reality is very different when dealing directly with banks. In fact, financial institutions often show little or no appetite for low-margin, labour-intensive company accounts with regular cross-border payments”, explains Lukas Wissner, CEO of astrantiaPay. “As a result, opening and maintaining corporate bank accounts can become a complex and costly procedure, posing a real challenge for Swiss and European start-ups and established businesses. This can hinder growth, and sometimes even threaten a company’s existence. Ultimately, corporate bank accounts with a foreign nexus are an underserved niche segment in the Swiss financial ecosystem which is historically dominated by asset managers and private banking.”

SaaScada is an industry-proven core banking system that unlocks trapped customer value, mitigates risk, and drives real-time data insights. It was founded from a desire to provide first-class financial services capabilities for everyone. SaaScada’s configurable product features and transactional ledgers can be connected to any payment scheme, gateway, channel, or FX provider. Its event-driven architecture will provide astrantiaPay with a real-time stream of events for each company account.

“SaaScada’s experience and deep understanding of how to execute a bank in the Swiss financial and regulatory landscape convinced us,” concludes Lukas Wissner. “Looking back, SaaScada was the right starting point on our integration journey, as its experienced team of programmers readily enable open API connections to virtually any data source and endpoint; be it software tools for onboarding, client relationship management (CRM) and transaction monitoring (TM), or accounting systems, payment aggregators and international correspondent banks. Leveraging SaaScada’s proficiency and infrastructure has helped us create an organic whole.”

“Lukas Wissner and the team at astrantiaPay have a distinct vision to make bank account opening simpler for international SMEs,” explains Nelson Wootton, Co-Founder and CEO at SaaScada. “SaaScada is delighted to support astrantiaPay in driving financial inclusivity for its customers, solving complex compliance challenges, and enabling SMEs to thrive.”

Continue Reading

Banking

How Biometric Payments Are Tackling Financial Exclusion

Published

on

By Catharina Eklof, CCO, IDEX Biometrics

We are moving closer to a cashless society: 89% of payments in the UK are contactless and, globally, contactless payment transaction values are set to surpass $10 trillion by 2027. Ease, convenience, security, and inclusion have accelerated the transition away from cash. However, many of today’s current payment solutions are leaving entire cross sections of society behind: including the most vulnerable, underserved, and unbanked populations.

Developments in the payment sector over the past decade still aren’t a perfect fit for all. Those suffering from dementia, literacy challenges, or impaired vision can find current payment methods – with a PIN to remember – extremely challenging. Financial inclusion requires us to make payments accessible to all demographics. Though the financially excluded represent minorities, they account for an estimated 1.7 billion people – almost a third of adults globally.

Enabled by huge advances in technology, our evolving social dialogue has become accelerated and unfettered, on a global scale. It is critical to harness technology as a force for dynamic economic improvement: democratizing access to banking and payments. As such, we need to look beyond mobile wallets or digital payments and support those in need of easier access to payment and fintech solutions. A more inclusive form of payment technology is essential.

Catharina Eklof

 

Personal Identity as the New Pin Code

Many communities remain vulnerable or underserved by the functionality of traditional payment solutions such as bank cards. These products are, at their core, only linked to the owner by way of name and signature, offering limited security and protection. With contactless payments, no link whatsoever is required to a card for payment.

In an increasingly contactless society, fraud and digital security are growing concerns. Credit and debit cards can be used by anyone, and card readers don’t understand if cards have been apprehended illegally. Vulnerable groups may also struggle to input their credentials into what can be, for some, a complex system. Empowering those vulnerable groups therefore means providing them with the independence to access payments with greater ease.

Biometric payment cards play a significant role in bridging the gap between the financially underserved and the financially included. Simple and secure financial authentication, like facial or fingerprint recognition, allow payments to become about who a person is rather than what they know or remember. If individuals can be personally linked to a payment card via biometrics, it can address the significant 1.1 billion people worldwide who are currently without official government identification or access to it. In Nigeria alone, 149 million individuals lack the legal means to evidence their identity, while in South Africa, 12 million individuals are excluded from the country’s formal identity system.

Fingerprint authentication has the added benefit of optimizing security, in that it requires the individual to opt into a purchase, avoiding any issues of unauthorized or unintentional payments from having a reader placed near the card owner’s face. This provides increased independence for the blind and visually impaired, who account for an estimated 2.2 billion people globally, as it allows for seamless payment authentication without sensory barriers. Similarly, biometric smart cards can be transformative for more than 55 million people living with dementia and Alzheimer’s, as it enables access to payment without the difficulty of remembering passcodes.

Literacy is also a little talked about hurdle to inclusion. Globally, there are 750 million “functionally illiterate” individuals struggling to use and understand financial products. Across all levels of education, biometric authentication is a universally inclusive concept. It is easy to communicate and understand that one’s fingerprint is inherent to their identity, and can act as a form of verification. Biometric smart cards facilitate and secure payments with ease by simply requiring their fingerprint to instantly authenticate their own card.

 

Pushing on With Progress

Even the most reluctant individuals are likely to have succumbed to contactless payments and some form of digitized banking in recent times. This will have the positive impact of making the needed transition to biometrics more seamless. Using fingerprints or facial recognition to unlock phones or access apps is not unusual. If anything, they have been convenient and comforting additions to the surge of tech innovations over the last couple of decades. There is a relief in knowing that these portals are being secured by methods that are almost impossible to replicate.

It is a breakthrough that financial players and governments in the world’s most developed countries still need to catch up with, as emerging economies have already capitalized on biometrics’ capabilities for almost a decade now. In India, for example, internal fraud and leakage from pension payments dropped by 47 percent after transitioning from cash to biometric smart cards. Because the solution bypasses the need for prior credit ratings or credentials, the country has also been able to catalyze safe online banking among previously unbanked adults since biometrics’ introduction in 2014.

Meanwhile, in Pakistan, the total number of mobile wallet accounts tripled from 5 to 15 million in 2015, with an estimated 50 percent of new registered mobile wallet accounts opened using biometric authentication. This was a result of Pakistan’s National Database and Registration Authority’s (NADRA’s) effort of collecting biometric information to allow for more convenient and democratic account opening processes.

Many around the world have been marginalized by both the pace of change in banking and the solutions that have, to this point, been created to accommodate such change. With the mass adoption of biometric smart cards, the same benefits seen in India could be realized on a global scale. If we take on the opportunity in front of us – promoting solutions like biometric smart cards to increase accessibility to the global economy – we will foster a digitally-focused, equitable and inclusive society. This doesn’t just mean ease and convenience, but also security for all and financial inclusion of those who have been left out of digital evolution, until now.

Continue Reading

Magazine

Trending

News46 seconds ago

Tata Motors partners with IndusInd Bank to offer exclusive Electric Vehicle Dealer Financing

Key Highlights:   One-of-its kind Electric Vehicle Inventory Financing program for Tata Motors’ dealers  Limits extended towards EVs will be over...

Finance11 mins ago

astrantiaPay Selects SaaScada to Enrich Swiss Landscape of Business Payments and Fill Market Gap

Swiss financial firm, astrantiaPay, to use SaaScada’s cloud-native core banking engine to simplify cross-border payments for SMEs and facilitate international...

Business13 hours ago

How Big Data is Transforming Bilateral Trading

By Stuart Smith, Co-Head Business Development – Data & Risk   Since its inception, Big Data has been an important...

Banking14 hours ago

Three tips to help banks profit from the rise of managed services

By Chris Mills, Global Head of Managed Services Sales, Finastra Research from IDC finds that only 29% of banks claim...

Banking15 hours ago

How Biometric Payments Are Tackling Financial Exclusion

By Catharina Eklof, CCO, IDEX Biometrics We are moving closer to a cashless society: 89% of payments in the UK...

Banking2 days ago

Poor software testing puts banks at high risk of IT failures

 Sune Engsig, VP Product at Leapwork   IT failures have plagued the banking industry for several years. From the TSB computer...

Finance2 days ago

The Importance of Experienced Customer Service Advisors in Finance

If there is one thing which can be said about the finance sector, it would be that as a customer-facing...

Business4 days ago

Financial Services Makes Gains In Employee Engagement

By Phil Chambers, GM Workday Peakon Employee Voice    A new report shows that the financial services industry improved in...

Business4 days ago

The FTX collapse: Lessons learnt for the CFO

Hartmut Wagner ,CEO of Serrala   ‘A complete absence of trustworthy financial information’ were the words used to describe the...

Business5 days ago

Black Friday, Cyber Monday and beyond: The inevitable shift to mcommerce

Arunabh Madhur, Regional VP & Head Business EMEA at SHAREit Group   Last year, we saw explosive growth in Black...

Business5 days ago

Keeping your options open and flexible: How to manage cloud migration for Financial Services Organisations

By Rachel Mcelroy, Marketing Director at Cloud Gateway   Financial Services Organisations, such as banks, insurance firms, and accounting firms,...

Business5 days ago

What makes a good entrepreneur?

By Emma Lewis, Myriad Associates Ireland   Many of us have dreamed of coming up with the next big thing...

Finance5 days ago

Things To Think About Before Starting Your Cryptocurrency Investment Journey

Making the decision to start investing can be an exciting time. Knowing that you’re going to be taking a more...

Banking5 days ago

How banks can increase customer acquisition and user engagement with sustainability

By Karolina Szweda, Head of Growth Marketing at Connect Earth Young people are demanding more innovation from traditional financial institutions,...

Banking5 days ago

The new blueprint for Open Finance? – A look inside the new Saudi Open Banking Framework

Chris Michael, Co-Founder & CEO, Ozone API   It has been a genuine privilege for all of us at Ozone...

Business6 days ago

How intelligent AP automation can put construction businesses on solid ground for growth

Cody Manning, NORAM Chief Sales Officer at Yooz   The ability to access personal emails, utility bills, invoices and other...

Finance6 days ago

Unlocking the power of AP Automation to tackle payment fraud in an economic downturn

Daniel Ball, SVP Innovation at Medius   Fraudulent activity in the workplace is not stopping any time soon. According to...

Business7 days ago

Why building trust in the workplace should be an employer’s priority

Emma Price, Head of Customer Success of ActiveOps discusses why managers should focus on workforce trust to negotiate the management...

News1 week ago

Times International and SaaScada partner to deliver innovative trade and commerce financial solutions

Global trade is forecast to increase between 30% and 70% by 2030, with 80% relying on trade finance. With traditional...

Top 101 week ago

Top 5 Holiday Season Fraud Trends

By Doriel Abrahams, Head of US Analytics, Forter With International Fraud Awareness Week and the holiday shopping season officially underway,...

Trending