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Cloud Industry Points of View

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Presentation on theme: "Cloud Industry Points of View"— Presentation transcript:

1 Cloud Industry Points of View
Institute for Business Value

2 To access the cloud banking POV, please go to…
ibm.biz/BdEHzD To access the complete list of cloud industry POVs, please go to… ibm.biz/BdHLaT

3 IBV Cloud Industry Banking POV
Today Your presenters: Anthony Marshall Research Director IBM Institute for Business Value Surendra Ramaiah Leader of IBV Cloud POV Program Nicholas Drury Global Banking and FM Leader IBM Institute for Business Value ibm.biz/ibvonw3

4 Download materials: ibm.biz/BdHLaT
Agenda today IBV Cloud industry program Cloud banking industry POV Using cloud banking industry POV with clients QA Download materials: ibm.biz/BdHLaT

5 Cloud industry POV decks
Deck format Designed to use as A standalone deck A set of slide resources to include in other presentations, pitch presentations, proposals or deliverables A resource document with resources and key contacts Designed to be used by IBMers with clients, not to be sent externally as a deck (documents published externally go through additional reviews and approvals) Only available internally on W3, not available externally Download materials: ibm.biz/BdHLaT

6 Complete list of IBV Cloud industry POV materials, by industry
URL Banking ibm.biz/BdEHzD Chemicals & Petroleum ibm.biz/BdHnbM Financial Markets ibm.biz/BdXBLw Industrial Products ibm.biz/BdXkTz Insurance ibm.biz/BdXBL6 Media & Entertainment ibm.biz/BdXkT4 Retail ibm.biz/BdEHzF Automotive ibm.biz/BdXdDt Consumer Products ibm.biz/BdXkTj Healthcare ibm.biz/BdEHzX Consumer Electronics ibm.biz/BdEHzH Life Sciences ibm.biz/BdEg5H Telecommunications ibm.biz/BdEHzE Government ibm.biz/BdEHz4 Travel ibm.biz/BdXkT2 Education ibm.biz/BdXJEU Transportation ibm.biz/BdFv6J Energy & Utilities ibm.biz/BdXkTR Download materials: ibm.biz/BdHLaT

7 All materials are available in English and also some other languages
Cloud industry POV decks Cloud industry POV Executive Summaries Join the IBV Connections Community for regular updates on new cloud materials and other research ibm.biz/BdHLHR To right corner – click Join Community Download materials: ibm.biz/BdHLaT

8 Download materials: ibm.biz/BdHLaT
Cloud University will run through the year with presentations on each of the industries This is the second in a series of sessions that will run through 2016 Every two weeks approximately, we will cover a different industry Led by the IBV industry leader Will walk through the POV and discuss how it can be used with clients Watch for invitations – forward to colleagues who might also be interested Download materials: ibm.biz/BdHLaT

9 Download materials: ibm.biz/BdHLaT
Agenda today IBV Cloud industry program Cloud banking industry POV Using cloud banking industry POV with clients QA Download materials: ibm.biz/BdHLaT

10 To access the banking deck, please go to…
ibm.biz/BdEHzD

11 Cloud Consumer Banking Point of View
Institute for Business Value Presenter’s Name | Optional presenter’s title/credentials Optional presentation location | Optional presentation date

12 Executive summary Cloud computing offers potential to redefine customer relationships, transform banking operations and expand business potential and capabilities Although slow to initially embrace cloud computing due to privacy and security concerns, banking industry has now adopted cloud starting with private clouds based on its requirements Leading banks have leveraged cloud for Business model / ecosystem innovation Revenue model innovation Operational innovation A structured risk assessment and mitigation strategy will help address security and data privacy concerns as well as compliance issues that may arise due to cloud adoption. Regulatory authorities, recognizing cloud’s potential in banking transformation and enhancing operational efficiencies, are providing guidance to banks in many countries for cloud adoption Banks should have a clear business-linked Cloud strategy that not only transforms its IT function but evaluates new business opportunities leveraging cloud’s potential IBM, with significant experience in helping several banking clients to adopt cloud, is uniquely positioned to help you with innovative cloud based solutions

13 Cloud is transforming the business of banking
This POV deck has three sections: Section 1 This section discusses retail industry challenges, cloud and its business enablers, how cloud can help businesses transform, enhance operational efficiency. Specific industry examples have been used to illustrate how cloud has been used by business leaders to enhance business results Section 2 This section takes up the topic of how to go about implementing cloud. A 5-step process is proposed and each step is further explained with 1 to 3 slides with examples where required. A critical part of cloud adoption will be changes required in the Target Operating Model (TOM). Section 2 discusses cloud’s impact and its implications to organizations. The implications can be used as inputs to developing an action plan. The section is concluded with IBM’s cloud implementation examples within Banking industry Section3 This section highlights IBM’s cloud portfolio Industry and Cloud specific contacts are provided for people to reach out for further support

14 Market forces are characterized by headwinds that challenge growth
Driving volatile earnings… Turbulent economic conditions Intense competition Non-traditional entrants Evolving consumer expectations …and increasing operating costs Decreasing returns on equity Need to optimize use of capital Shrinking operating margins $ We start with industry challenges highlighted by two charts on financial performance. The objective here is to converge on the Banking Leaders’ need to look for new approaches to manage these challenges and the potential offered by cloud Banks need to find ways to navigate key forces of change Turbulent economic conditions are affecting revenue Economic growth remains uncertain Competition is intensifying with M&A, divestitures Non-traditional entrants disrupting existing banks’ business Rapidly evolving consumer expectations Decreasing returns on equity require greater operational efficiency Mature & emerging market segments focus on optimizing use of capital Operating margins continue to shrink New regulations call for larger capital & liquidity cushions Radically increased oversight is driving investment in risk management technology Rebuilding customer trust & marketplace confidence is critical to future growth Banking leaders need to look at new enablers to address industry challenges Innovate & grow the business: Growing costs and customer demands are placing the onus on industry executives to innovative, in product design, time to market and in customer service Increased intensity and proliferation of competition: New banks and non-traditional player pressures; Payment disruption; Lower than expected financial returns Rationalize and streamline operations: Increased capital requirements forcing rebalancing of all costs while availability of new capabilities and operating models driving to rethink on organization functions Managing investment priorities: Historical underinvestment in legacy technologies; Prioritize investments with rising costs and limited funding Contain cost of regulatory compliance: Higher compliance costs with shortage of internal expertise, insufficient clarity of regulations Manage risk holistically: Identify, evaluate and mitigate all types of risk in a holistic manner – re-thinking the op. risk, governance and compliance functions and align it with financial performance Increasing regulations and oversight Rebuild customer trust & marketplace confidence Source: Capital IQ (Top 250 banks), Banker Database, FDIC, Comments from Analyst Reports

15 To overcome these challenges industry leaders must deliver on four key imperatives
Create a customer focused enterprise Increase flexibility and streamline operations Drive innovation while managing cost Optimize enterprise risk management Optimize data and leverage analytics to adapt to new behaviors, cultivate trust, and drive profitable growth Improve operating leverage with variable cost structures that increase flexibility and reduce risk Deliver new services quickly that decrease cost per transaction and drive competitive differentiation Maximize return on equity, combat fraud and mitigate operational risk while achieving compliance objectives Industry leaders will deliver on four key imperatives, grounded in new ways of measuring, modeling and applying information The industry imperatives: The basic tactics that will help organizations deliver on the goal articulated on the previous slide. Refer to for more information Cloud computing improves efficiency, expands innovation potential and drives revenue growth

16 Business is being transformed on three technology enabled dimensions
Data Cloud Systems of Engagement The new natural resource Data is the new basis of competitive advantage Sophisticated analytics across disparate data sources will drive business outcomes Time value of data will enable “speed of insight” and “speed of action” as core differentiators Enables new business models Cloud’s “game changing” attributes revolutionize industry value chains, forcing companies to embrace new business models Cloud is enabling transformation of IT and business processes into digital services Redefines customer relationships Mobile connectivity, access and participation are growing rapidly Social media is quickly becoming the primary communication & collaboration format Mobile and social enhance speed of responsiveness and personalization The phenomena of data, cloud, mobile and social are changing the arena of global business and society The slide highlights the new focus areas and enablers that business leaders can leverage to address industry challenges and imperatives Additional information: Data - Cloud - Systems of engagement -

17 There are numerous examples across the industry where cloud has enabled business and operating model innovation Barclays1 “Pingit” cloud based mobile payment platform and service launched in seven months A private cloud helps Pingit deploy features 12x faster Pingit puts Barclays 2 years ahead of other UK bank cashless capabilities with 2.5M downloads and a rich set of features and functions for consumers, small business and corporate clients Fidor2 is a “cloud native” bank built on a cloud ecosystem of financial product providers The bank built it’s own API centric core bank platform Social media is used exclusively for acquisition, retention, cross sell, R&D Fidor has a community of 300k+ users and 65k+ customers (Aug 2014) IT cost per user is $15US, average CpC is $32US (Aug 2014) Crédit Agricole3 created a platform that allows 3rd parties to co-create apps with CA customers. Customers that want to use the apps are charged $1 a month to secure their data. There are 20+ apps and the majority of fees go to the developers. Customers are getting the latest technology and the bank is tapping into open innovation. The examples shown above have been selected to illustrate cloud’s role in business and operating model innovation. These implementations were done by the banks directly (Barclays) or other CSPs. IBM products may be used in the implementation Barclays Pingit – this was introduced in It took Barclays only 7 months to launch “Pingit”, their mobile money platform and offering. Cloud allows the bank to make new features and updates 12x faster. And as the UK adopts the “Paym” standard the bank is still 2 years ahead of their competition in terms of features, function and adoption – making Barclays the best bank for corporates that are looking to offer mobile as a way to pay in the UK. [1] Source: It took Barclays only 7 months to launch the cloud based “Pingit” that allows sending and receiving money with a mobile phone The bank deploys features and updates 12x faster. While the UK standard for mobile money “Paym” is now being rolled out, Barclays has a significant lead with 2.5m downloads for Pingit and a rich set of features and functions for consumers, small business and corporate clients. [2] Fidor Bank is the brainchild of a group of entrepreneurs who recognised that because Web 2.0 and social media were changing people’s social lives, they would inevitably change retail banking too. Co-incidently the bank was launched during the financial crisis when trust on traditional banks was waning and people were likely to change their banks. Fidor bank is built around Web 2.0 and has 3 engagement models – Start as community where people talk about finance and share experiences Then there is opportunity for these members to use Fidor’s payment services Finally they can become a full retail banking customer with a current account, loans and savings. Currently, about 70% of the community have used the payments service and about 30% bank with Fidor. Fidor currently has more than 200,000 people registered and 150,000 community members. It has €160m worth of deposits, and its lending totals about €100m. With only 34 staff, no branches and a cost of only €3.50 to set up a customer with full banking, the overheads are low compared with traditional banks Source: , (and also Examples of organizations that leverage cloud for business model innovation. Cloud expands business capabilities to rapidly adjust processes, products and services to meet the changing needs of the market For benchmarks on mid size banks, please refer to [3] Credit Agricole: "My health budget": the application of CA Store developed by IBM  As part of a partnership agreement signed in February 2013 to the CANF, IBM joined the cooperative developers - 'the Digiculteurs' - CA Store and created the application "My health budget "on iPhone. The latter makes it possible to reconcile the health expenditure of an individual and the refund to his bank (Mutual Social Security) account. The principles of features are: - Monitoring health spending since the initial rate until the final repayment - The distribution of health spending by categories - Visualization of the evolution of these expenses through charts The application is very successful since it is the 4th most used application on the CA Store Google Mail, Facebook, Linkedin - The extreme low cost basis of cloud invented a new category of free or very low cost and sticky services – the resulting loyalty allows for the collection of personal data which is monetized in the form of advertising. Aetna - Aetna has decomposed it’s offerings into building blocks that allow it to grow brand value and revenue. By creating a partner ecosystem based on an API framework, Aetna is reinventing itself while extending their products into every aspect of customer well-being (Source: Also there is… Source: See speaker notes

18 Cloud fosters capabilities that traditional computing can’t…
Cloud characteristics and technologies Expands business capabilities Enabling Essential characteristics of cloud1 Broad network access Rapid elasticity On-demand self service Measured service Resource pooling Cost flexibility Industry / Business model innovation – create new industry ecosystem or disintermediate an existing value chain Revenue model innovation – create new products and services or utilize new channels or payment models Operational innovation – maintain competitive parity and place in existing value chain Business Scalability Market adaptability Cloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources. Often referred to as simply “the cloud,” it is the delivery of Computing as a service delivered over the Internet. Cloud delivers on-demand computing resources—everything from applications to data centres—over the Internet on a pay-for-use basis. Cloud attributes foster capabilities that traditional computing technologies can’t… This slide talks about cloud’s business enablers that can help drive innovation within organizations. The essential characteristics: On-demand self-service: Users are able to provision cloud computing resources without requiring human interaction, mostly done though a web-based self-service portal (management console). Broad network access: Cloud computing resources are accessible over the network, supporting heterogeneous client platforms such as mobile devices and workstations. Resource pooling: Service multiple customers from the same physical resources, by securely separating the resources on logical level. Rapid elasticity: Resources are provisioned and released on-demand and/or automated based on triggers or parameters. This will make sure your application will have exactly the capacity it needs at any point of time. Measured service: Resource usage are monitored, measured, and reported (billed) transparently based on utilization. In short, pay for use. Technologies enabling cloud Virtualization is an important attribute of cloud computing but not the only component of a cloud computing architecture. Virtualization technologies provide a layer of abstraction between computer hardware systems and the software running on them as a way of logically dividing resources (like compute, network and storage) among the applications that need them. Virtualization is managed by Hypervisors (virtual machine managers) Provisioning is the process of making resources available to users. In Cloud, the users could be multiple applications requesting cloud resources. These applications may be running in private, public or hybrid clouds, and may be using different hypervisors Orchestration and provisioning technology helps the cloud continually evaluate real-time resource requirements, anticipate trends and to dynamically deploy or repurpose IT resources based on business or application priorities. Orchestration is the automated coordination and management of IT resources. It includes aligning the business request with the application, data and infrastructure; defining policies and service levels; and centralized management of the resource pool including billing, metering and chargeback. Cloud’s business enablers Cost Flexibility Shifts CapEx to OpEx Shifts cost from fixed to variable, pay as you go Business Scalability Rapid / elastic provisioning of resources with no limits Benefit from scale economics Market adaptability Speeds time to market Supports rapid prototyping and innovation Masked Complexity Expands product sophistication Simpler for customers/users Context driven variability Supports context-driven, user-centric experiences (preferences, movements, behaviors) Ecosystem connectivity Facilitates new value nets of partners, customers and other external players Enables industry platforms Innovation Revenue Model Innovation Use cloud to create new products and services or utilize new channels or payment models (Product or service innovation) Create new products or services (Product or service innovation) Deliver via new channel (Operational model innovation) Develop new payment models Operational Innovation Use cloud to maintain competitive parity and place in existing value chain Achieve step changes in process efficiency & effectiveness Better partnering, sourcing, collaboration Industry Model Innovation Create new industry ecosystem or disintermediate an existing value chain Radically change industry economics Technologies enabling cloud Virtualization Provisioning and Orchestration Service automation Usage tracking Web 2.0 / SOA Masked complexity Context-driven variability Ecosystem connectivity Source: [1] National Institute for Standards and Technology, US

19 Cloud adoption by banks delivers efficiencies, growth and competitive advantage
Business model innovation Revenue model innovation Operational innovation Third-party services can be extended into bank ecosystem Open collaboration and sharing can be expanded Innovation can be introduced across systemically Customer relationships can be more readily monetized Time to market can be enhanced Value-added services from partners can be more easily introduced Simple and faster processes drive internal efficiency Reduced complexity enables more data to manage risk IT capacity can be readily aligned to business volumes How does cloud enable innovation? This slide highlights key areas that cloud helps organizations to innovate in banking. Cloud enables individual bank integrated, compelling customer experiences…….in so doing, first mover banks are more likely to lock-in customers impeding foothold for new entrants

20 Cost reduction, improving data access and demand generation are top business drivers for cloud adoption by banks Primary business drivers behind cloud adoption Source: Economist Intelligence Unit Cloud survey commissioned by IBM, unpublished industry data, 2015, Question: 11a. What have been the primary business drivers behind cloud adoption at your organization during the last two years?, n=127

21 IBM helps leading banks capture the benefits of cloud
Business model innovation Revenue model innovation Operational innovation Countries connected enabling trade 180 US$30k and more volume per month 34 % Cost reduction and faster time to market % 35 Eurobank1, a large Greek bank created a Cloud-based multi-lateral trade offering between Greek businesses & their international trading counterparts across 180 countries. Source: [1] [2] [3] IBM experience with the client IBM has helped its banking clients in cloud adoption. This slide talks about 3 examples for each type of innovation discussed in the previous slide Business model innovation (Eurobank) – address growing customer demand for new online trading and transaction services Eurobank developed Exportgate,  which is a cloud-based digital experience capable of strengthening online multilateral trade between Greek businesses and their international counterparts across 180 countries. Exportgate offers secure business-to-business Web portal with powerful social capabilities and a number of e-services designed to facilitate trade transactions with new partners. Offering user-friendly social tools and resources for industry analysis, international buyers can easily access profiles of Greek sellers, contact them through the direct message feature, view virtual presentations, and participate in forums where they can exchange ideas, research and Revenue Growth (Signature Mortgage Corp) Instead of going into a branch, customers can initiate, review and sign applications electronically through services delivered over the cloud. Operating efficiency: The personalized customer experiences enabled through the cloud delivered €20million increase in corporate earnings while enhancing customer connections and improving response rates. Signature Mortgage Corporation2 implemented a cloud-based integrated collaboration mortgage solution, so customers can apply and complete loans electronically. A large bank implemented a cloud environment that delivers personalized product offers across multiple channels to customers in real-time. Source: See speaker notes

22 Banks have also realized financial benefits through cloud adoption
Financial gains by cloud implementation Cloud has enabled banks to tackle specific business problems and improve financial performance By drastically reducing operational expenditure and by operational expense avoidance, cloud has helped banks to meet their business objectives Cloud also supported banks to deliver both revenue and profit growth Reduced capital requirements for banks by eliminating capital expense Source: Economist Intelligence Unit Cloud survey commissioned by IBM, unpublished industry data, 2015, Question: 13. Which of the following financial benefits has your organization realized because of cloud technologies during the last two years?, n=132

23 Cloud accelerates time to market, enhancing customer experience
Using a combination of cloud delivered services, can create “as a service” components to analyze data from social media IBM is helping Tangerine Bank, the leading digital bank in Canada operate a device agnostic Mobile Bank, allowing freedom of choice for their customers The bank partnered with IBM to quickly develop, test and deploy applications using IBM PureApplication System, MobileFirst, Bluemix and API catalog Bank was able to Reduce development provisioning from days to less than 30 minutes Shorten development cycles from 6 weeks to 2 Deliver innovative customer service tools PaaS: Rapid app development through composable services and APIs 1. Define development environment 2. Add database service SaaS: Enterprise- grade business apps to accelerate innovation 3. Extract & feed social media data into database One of the powerful capabilities of cloud is to speed up application development. The ability to assemble components to create a new application without much coding is helping organizations in reducing application development and deployment timelines. Source: a). b). c). Adopting a cloud-based collaboration model makes it easier to find appropriate building blocks and assemble these into a solution quickly The cloud has made application development easier with the availability of a host software and solutions as a service. APIs make it easier to integrate with existing or new applications. Business users can now build / assemble applications quickly without any technical development skills as readymade applications / components are available now This leads to rapid turnaround of solutions for the banks and reduction in time to market for new products and services The above is a very good example of composable business. Key characteristics of composable business Able to restlessly re-invent apps, services and processes Uses well defined interfaces (APIs) makes blocks easy to use and share Assembles capabilities from blocks that can be rapidly combined Keeps building blocks small (“micro services”) to reduce risk and complexity Shares data (through APIs again!) to take advantage of analytics Iterate 4. Add social analytics service We give our customers what they need and are challenging the status quo And we’re challenging the banking industry through our innovation and technology Peter Aceto, Chief Executive, Tangerine Bank 5. Add Monitoring service instance IaaS: Self-service configurable IT infrastructure resources 6. Provision resources and secure the service Source: See speaker notes

24 As banks evolve with cloud adoption, business users will be able to design and prototype applications quickly Organizations are benefiting from new user-driven, mobile and cloud-centric IT Cloud is transforming Enterprise IT functions, roles and responsibilities Business Managers are increasingly using cloud for application development to enhance agility IT departments need to be “Managers” of Corporate information assets spread across different suppliers and multi-tenant ecosystem facilitate and broker the sources of IT resources that enhance business value without loss of control Cloud enables collaboration with business users, developers, architects, and designers Vendors / CSPs provide no-code or low-code alternatives to compose / build apps Cloud speeds up prototyping and testing the application with internal business users or a select set of customers Source: Cloud service provider (CSP) Finalize requirements Design Develop / compose application Test application Deploy application Business Manager Source: See speaker notes

25 Charting the path for cloud adoption

26 Enterprise Cloud Adoption
Structured process helps banks to determine how to adopt cloud Selection – Prioritization – Quantification – Migration Evaluate a blend of cloud options that best suit the project requirements New project Enterprise Cloud Adoption Cloud First New project BPaaS SaaS PaaS IaaS Replace existing app / infra Business case The Opengroup defines the term “workload” as the type and characteristics of application(s) that can be hosted on the Cloud. In the context of Cloud Computing, an independent service or collection of code that can be executed without any external dependencies is considered as workload. It can be an application either small or a complete application. ********** For an organization where cloud is new, it is recommended to adopt this 2-fold approach: Put in place a Cloud First Strategy where all new projects will be first considered for cloud. This may cover a variety of projects including new applications for business processes, data centre expansion, software development etc. Available cloud options for these new projects should be evaluated first before making a decision to procure on-premise equipment Second, assess and prioritize existing applications and their affinity to cloud. A workload analysis will help determine existing workloads affinity to cloud and prioritize their migration BPaaS – business process as a service SaaS – software as a service PaaS – platform as a service IaaS – Infrastructure as a service Cloud First Strategy Evaluate all new projects first for cloud adoption For example, Software as a Service will help realize faster time to market respond quickly to competitive threats gain access to deep domain expertise drive competitive advantage Migration Select, prioritize and migrate existing applications to cloud Bank and cloud service provider will provide key inputs required for analysis Workload analysis tool helps in assessment, selection and prioritization of workload migration Develop a business case with quantified business benefits supporting prioritization Develop a migration plan to move functions / processes in waves Migrate prioritized workloads to cloud Migrate existing workloads Select Prioritize Quantify Migrate Migration Plan Workload analysis Wave 1 Wave 2 Wave 3

27 Banks can start cloud adoption with quick wins Selection – Prioritization – Quantification – Migration Total addressable market (TAM) for cloud computing software Application category TAM $ bn Collaboration $30.7 & Office Productivity $20.7 CRM $16.4 Security $9.9 HCM $8.2 Supply chain management $7.1 Travel & Expense Management $2.7 IT Service Management $3.0 Analytics $2.9 Finance & Accounting $1.4 Digital Marketing $21.0 Total Addressable Market (TAM) $124.0 Banks can look at these application categories for cloud adoption where Deployment ease is higher Security and data privacy issues are lower A variety of Software as a Service (SaaS) offerings are available in the market Banks can start realizing business benefits through these quick wins while planning for industry applications that may require significant efforts for cloud migration The objective of this slide is to highlight a growing trend to look at business functions / processes that are non-critical and easily moved to cloud. These horizontal business functions now have a growing number of cloud-based solutions that banks can easily implement. Source: BofA Merrill Lynch Global Research 2013

28 Selection – Banks leverage born-on-cloud solutions to quickly realize business benefits and gain momentum in cloud adoption Customer relationship management RCI Banque Spain1 works with IBM to implement Oracle CRM software as a Software-as-a-Service solution. Today, the company can identify customers whose loans and similar financial contracts are coming to an end, and make timely, personalized offers, greatly reducing the threat of competitors stealing their clients and increasing renewals and new business. Enterprise risk management (ERM) Wind Info2 will incorporate IBM's cloud-based risk management software, IBM Algo Risk Service on Cloud, and the locally installed IBM Algo One Risk Aggregator directly into its Trading Terminals. This hybrid solution will conduct sophisticated risk data processing in the cloud while keeping all client position data protected and confidential within the boundaries of China, an important requirement of Chinese law. Sourcing and Contract Management A Swiss investment banking client3 implemented IBM’s Cloud-enabled Emptoris SaaS solution to streamline and automate their sourcing, contracting, risk & compliance processes. The client is expecting a savings of $159M as a result of adopting SaaS solution The objective of this slide is to illustrate cloud adoption for horizontal applications (non-core business functions) is easier and helps in gaining confidence and quick wins. Source: [1] RCI Banque España RCI Banque España is the financial subsidiary of French car brands Renault, Dacia, Nissan and Infini in Spain and Portugal. The company offers financing deals and solutions such as credit, leasing and renting to its clients. IBM helped the bank to deploy Oracle CRM OnDemand to integrate, harmonize and analyze customer and product-lifecycle data. This has provided insight into customers’ past preferences, helping to build and deploy personalized, highly effective marketing campaigns to drive retention, encourage new sales and increase profitability. [2] WindInfo Shanghai Wind Information (Wind Info) is a leading integrated service provider of financial data, information and software. It has selected IBM to help provide its users in China with new cloud-based analytics tools to better manage financial risks and meet regulatory requirements. [3] IBM experience with banking client Source: See speaker notes

29 Selection – A bank has a set of services, functions and processes across six domains to run and manage a bank Strategy & Insight Strategy & Governance Business Strategy & Resource Planning Business & IT Architecture Acquisition & Alliance Planning Strategic Change Governance Public Relations Market Insight Market Research Segment Analysis Customer Insight Customer Analysis & Models Customer Profile Contact / Event History Risk & Financial Management Risk Risk Portfolio Management Lending Policy & Planning Asset / Liability Policy & Planning Compliance Audit/QA/Legal Business Policies & Procedures Finance Financial Control & Consolidation Performance Management & Reporting Finance Policies Fixed Asset Register Accounting / GL Treasury Front office and Channel Management Management Relationship Oversight & Management Channel Operations Distribution Planning Distribution Performance Management Sales & Servicing Customer Information Management Routing & Tracking Sales Servicing Transaction Capture Services Distribution Support Deal Structuring (Securitization / Syndication) Trading Correspondent Banking Customer Probity Check Brand & Product Management Marketing Brand & Segment Management Proposition Development Campaign Management Campaign Execution Product Factory Product Development Channel Planning & Development Product Catalogue Product Operations Planning & Development Processing / Back office Common Transactions Specific Application Processing Statements & Correspondence Market Info Document Management Product Accounting Ops Mgmnt Customer Fulfilment Underlying Asset Procurement & Management Complaint & Exception Handling Customer Maint Collections & recovery Transaction Execution Reconciliation Transaction Authorization Cheque Processing Payments Cash Inventory Billing Fraud / AML Detection Card Processing Custody & Other specific processing Merchant Operations Trade Finance specific Processing Treasury back office Clearing & Settlement Cash Managmnt Support Services Systems Development & Operations Helpdesk Services Human Resource Management Facilities Operation & Maintenance Procurement Our CBM approach to operating models uses six domains to describe the major functional groupings in the bank. In order to understand the deconstruction, one has to isolate the core competencies required to engage in banking. Distribution is the integrated layer of touch points between the institution and the customer Brand & Product Management is integrated ability to rapidly produce and or assemble products Processing is the efficient set of back office capabilities that allow for post sale servicing Insight is the enterprise wide view of the customer and markets Risk and FM is the enterprise wide view of risk and financial information Lastly is Support Services at the broadest level to include business and technical infrastructure. Banks need all these capabilities in order to engage in banking. However, they don’t have to perform all the functions themselves. Source: IBM’s Component Business Model for Banking

30 Selection – Of the dozens of business services essential to financial organizations today…
Campaign Management = Cloudable / yes, 100%, cost savings 30% to 80% …IBM can help you identify those that can be delivered and consumed most efficiently, effectively and securely over the cloud.

31 Selection – Cloud workload analysis helps banks determine cloudable functions and processes
High-level representative view of banking functions and processes Strategy & Insight Front office and Channel Management Brand & Product Management Processing / Back office Risk & Financial Management Support Services Bank provides the following inputs Servers and Operating systems Location distribution Overall storage Non functional requirements (NFR) Application and workload data Current costs Cloud service provider can provide the following inputs Target cloud configuration Target cloud NFR Historical data Target cloud cost Cloud workload analysis Cloud workload analysis is a structured approach to study the data (both from the bank and also Cloud Service Provider) to determine which of the workloads can be migrated to cloud and what efforts may be required to do that migration. Input/output, disk and utilization mapping NFRs examination Operating system and software compatibility Migration difficulty

32 Prioritization – Some banking functions and activities are more conducive to cloud than others
CATEGORY 1 – READY FOR CLOUD CATEGORY 2 – NOT READY FOR CLOUD Characteristics Standardized applications Apps that require on-premise data (that cannot be migrated to cloud) Self-contained workloads High degree of customization Applications developed using Service oriented architecture Legacy systems Complex application integration Apps that need high performance Example workloads Analytics Sensitive data Collaboration Highly customized Infrastructure compute & storage Not yet virtualized third-party software Workplace desktop and devices Complex processes and transactions Business processes Regulation sensitive Disaster recovery Legacy industry applications Development and test A third category relates to workloads that require individual analysis and may be ready for cloud Example workloads are Isolated workloads Preproduction systems Batch processing The output of workload analysis can be: 1). More ready for cloud – the workload can be migrated to cloud without any change to them (or very minor changes) 2). Not ready for cloud – the workload will need major changes to make it leverage cloud characteristics and provide cloud benefits 3). May be ready – the workload may require some changes to migrate them to cloud The changes can cover applications, data, hardware (virtualization etc), application integration, ability to provision automatically etc Source: IBM cloud implementation projects and analysis

33 Prioritization – A cloud readiness assessment shows 35% of existing workloads can be moved to cloud
More ready for cloud May be ready for cloud Not ready for cloud Strategy & Insight Front office and Channel Management Risk & Financial Management Management Sales & Servicing Distribution Support Strategy & Governance Relationship Oversight & Management Distribution Planning Customer Information Management Sales Deal Structuring (Securitization / Syndication) Correspondent Banking Servicing Risk Business Strategy & Resource Planning Distribution Performance Management Customer Probity Check Risk Portfolio Management Channel Operations Routing & Tracking Transaction Capture Services Trading Lending Policy & Planning Business & IT Architecture Brand & Product Management Asset / Liability Policy & Planning Acquisition & Alliance Planning Marketing Product Factory Brand & Segment Management Campaign Management Campaign Execution Product Development Product Catalogue Product Operations Planning & Development Finance Strategic Change Governance Proposition Development Financial Control & Consolidation Channel Planning & Development Public Relations Processing / Back office Performance Management & Reporting Common Transactions Specific Market Insight An assessment of CBM components and their readiness to move to cloud is based on following assumptions This assessment is for existing banks where on-premise datacentre, hardware and applications are deployed Underlying applications are considered for these components Since this is a running bank, core banking solution and ERP are assumed to be old or not ready for cloud Some of the components which may have newer systems like CRM, Analytics, Marketing, BPM-based systems are assumed to be ready Some of the assumptions may slightly vary depending on cloud options (public, private (hosted / managed etc), hybrid) Some of the components may not have automation currently – in these cases we have assumed that they are more ready with born-on-cloud solutions For the percentage determination, an approxinmate 35% is assumed from existing applications. Some of the CBM components shown may not have any applications. The above are based on specific assumptions based on IBM’s experience with banks. This assessment will change from bank to bank based on their applications, application integration data privacy and other factors. Market Research Application Processing Statements & Correspondence Market Info Cheque Processing Reconciliation Card Processing Custody & Other specific processing Finance Policies Segment Analysis Document Management Product Accounting Collections & recovery Cash Inventory Transaction Execution Merchant Operations Fixed Asset Register Trade Finance specific Processing Customer Fulfilment Underlying Asset Procurement & Management Payments Transaction Authorization Treasury back office Accounting / GL Customer Insight Complaint & Exception Handling Customer Maint Ops Mgmnt Billing Fraud / AML Detection Cash Managmnt Clearing & Settlement Treasury Customer Analysis & Models Customer Profile Contact / Event History Support Services Compliance Audit/QA/Legal Systems Development & Operations Helpdesk Services Human Resource Management Facilities Operation & Maintenance Procurement Business Policies & Procedures NOTE: The above is a representative example only

34 Improvements in banking operations
Quantification – A 35% partial workload migration to cloud helps bank improve its profits and reduce costs Revenue PBIT Op. Costs (excl IT costs) **IT Costs Current Costs for cloudable workloads Projected Savings Projected IT Costs Projected Op. Costs (excl IT Costs) Projected PBIT Brief description of the above example The data presented is for a representative bank using similar data of leading banks Financial data of the bank assumed as Bank’s assets: $592 bn Bank’s revenue: $15.8 bn Bank’s operating costs: $6.7 bn IT costs**: $1.04 bn (assumed to be at 6.6% of revenues – see notes below) Expected Costs & Savings Cloudable workload: 35% Current costs on cloudable workload: $366 mn IT Savings due to cloudable workload: 60% on current costs $220 mn per year In the above waterfall chart, Bank’s total operating costs of $5693 mn excludes IT costs IT costs of $1045 mn includes $336 mn of current costs of cloudable workloads Savings of $220 mn is projected as arising out of migration of 35% workloads to cloud Notes on IT Costs calculation: Based on Gartner’s IT Key metrics data, a 6.6% IT Costs on revenue is assumed (Source: Current costs on cloudable workload is also assumed to be 35% of total IT costs. This is a simplistic view though some additional factors may need to be considered and the costs may need to be adjusted accordingly. This can be done while developing business case Typically 30% to 80% savings is expected for moving workloads to cloud. Based on a business case developed for a bank, for the above example a 60% savings is expected with assumptions. These numbers will vary from bank to bank The impact on bank’s total costs and PBIT does not consider any other factors and assumed to be constant for this comparison. While developing a business case, more data can be obtained to validate impact of various factors on bank’s operating costs Improvements in banking operations Customer centric operations: Enhanced customer engagement through use of social media helps the bank put customer in focus and drive rest of the operations supporting it Increased collaboration, capability & reach: Increased collaboration with partners both banking and non-banking enables bank to do more for their customers Focused selling: Increased use of near-time analytics and targeted marketing campaigns Rapid turnaround time: Simple and faster internal processes make banks more responsive and efficient Shorter time to market: Enhanced / new products and services leveraging mobile and cloud Service orientation: Cloud forces banks and its teams to think “services” as part of their day-to-day work Illustrative Increased efficiency with rapid turnaround time Shorter time to market Enhanced service orientation Improvements in banking operations Enhanced customer centric operations Increased collaboration, capability & reach Focused selling ** IT Costs is estimated at 6.6% of revenue using Gartner’s IT Key Metrics data Note: The above is a representative example only

35 Migration – Cloud migration from architecture through implementation
Create Cloud strategy, architecture and plans 1 Identify and prioritize workloads 2 Determine cloud deployment options 3 Develop Cloud business case 4 Prepare for implementation 5 Determine the organization goals, platform requirements & complexity associated Develop enterprise cloud strategy, options available and roadmap Envision the cloud architecture that will support cloud initiatives Update IT Strategy and IT plans to align them with cloud strategy Define business drivers to prioritize use cases for cloud Implement a CloudFirst strategy to evaluate right blend of cloud options for new projects Assess and evaluate from the current applications, the best candidates for cloud Determine the applications to be moved to cloud Define multi-sourcing models and cloud vendor selection criteria Assess and determine how to best leverage the options of private, public and hybrid delivery models Develop Cloud Service Catalog, SLAs and KPIs Develop cloud cost models including transition Finalize a cloud business case and examine its ROI including time required for initial payback Prepare infrastructure for cloud Develop Cloud Risk Management plan and policies Security and Compliance plan and processes Transition plan including workforce transition Assess impact on operating model; identify and plan changes required Cloud planning should result in accelerated migration, quick wins and mitigated risks Note: The above shows an overall plan and will include aspects of workload prioritization and migration discussed in other slides

36 A defined approach and accelerators speed up cloud adoption
Strategy 1 2 3 4 5 Actions for migration Accelerators Develop a vision for cloud, align business – IT objectives & goals Identify changes in Enterprise Architecture and IT plans Create Cloud strategy, architecture and plans Use assessment & decision framework as a tool for prioritization Identify bank’s functions, processes and applications that can be moved to cloud Identify and prioritize workloads Determine cloud deployment options Assess workloads, data, impact on security and compliance Rapidly assess and determine optimal option from private, public and hybrid models Create Cloud strategy, architecture and plans Develop a vision for cloud, prepare cloud-based business strategy and obtain stakeholder commitment Coordinate with business and IT to align objectives & goals Develop a cloud strategy aligning it with business strategy Identify changes required in all IT plans, enterprise architecture, staffing Identify and prioritize workloads Use assessment and decision framework based on business value and ease of cloud deployment Conduct workload transformation analysis Identify bank’s functions, processes and applications that can be moved to cloud Determine cloud deployment options Assess workloads, underlying data, impact on security and compliance Rapidly assess and determine optimal cloud model from private, public and hybrid models Develop Cloud business case Determine business models to use for development a business case Assign teams to work across business, IT, risk and legal teams Identify business functions / processes impacted by cloud, business benefits arising, overall costs, risks Consolidate all information and develop a business case clearly separating AS IS view and the target cloud-based view to articulate business benefits Prepare for implementation Acquire / prepare cloud infrastructure Develop Cloud Risk Management plan Develop Cloud Security and Compliance plan and processes Develop transition plan including workforce transition (as required) Assess impact of cloud on current operating model, identify changes required and plan for these changes Develop Cloud business case Determine models for business case Identify business functions / processes impacted by cloud, business benefits, overall costs, and risks Prepare for implementation Acquire / prepare cloud infrastructure Develop Cloud Risk Management plan Develop transition plan including workforce transition Assess impact of cloud on current operating model

37 Cloud strategy comprises four elements
1 2 3 4 5 APPLICATION AND DELIVERY PLATFORMS Driving agility and productivity for the enterprise; tested strategies to improve life cycle performance BUSINESS MODELS ENABLED BY CLOUD Promoting highly competitive initiatives at the enterprise and Industry level INFRASTRUCTURE PLATFORMS Delivering consumable, secure and readily available resources to enable agile execution Business Models - Promote highly competitive initiatives at the enterprise and Industry level Drive new business model changes, revenue, channel & product opportunities Leverage cloud to enhance and optimize bank’s operating model Empower business users to configure applications and drive change rapidly Application & Delivery Platforms - Drive agility & productivity; tested strategies to improve life cycle performance DevOps and automation Ecosystem at scale API Economy Open services.net Stream innovation Outcome models Data Platforms - Instantiate well-integrated business intelligence to manage the enterprise Data visualization Simulations and scenario development Analytics applied within business processes Regression analysis, discrete choice modeling, and mathematical optimization Infrastructure Platforms - Highly consumable, secure and readily available to enable agile execution Self-managed Resiliency Elasticity DATA PLATFORMS Instantiating well-integrated business intelligence to manage the enterprise

38 Well defined cloud strategy enable banks to adapt to transforming industry landscape
1 2 3 4 5 Cloud technology has brought major transition in banking industry Banks are preparing to adapt to industry changes brought on by the cloud Most of the banks have included cloud adoption as a major part of overall long-term strategic planning The cloud strategy aims at aligning cloud deployment to business strategy to improve internal business efficiency, increase customer demand and reduce operational costs Cloud is a priority for banks and increasing number of banks are starting with an enterprise-wide cloud strategy 66% of organizations have well-defined cloud strategy Source: Economist Intelligence Unit Cloud survey commissioned by IBM, unpublished industry data, 2015, Question: 10. Which of the following best describes your organization's approach to the cloud?, n=132

39 Enterprise Innovation Pervasive Security Intelligence
Enterprise innovation is realized by integrating new technologies with existing core systems Strategy 1 2 3 4 5 Systems of insight Advanced analytics and cognitive computing systems that harness big data enabling competitive advantage for banks Systems of engagement Leverage mobile and social to transform relationships with customers, employees & citizens Systems of record The traditional core systems such as accounting applications and product systems that record key internal data Pervasive Security Intelligence A dynamic approach to threat reduction through a life cycle of prevention, detection and response. Systems of Insight Systems of Insight Enterprise Innovation Enterprise Innovation Today organizations are innovating in a siloed, disconnected way across multiple functions. Enterprise innovation will be realized through the integration of new technologies with core systems The conceptual model shown in this slide comprising of the capabilities of Systems of Record, Systems of Engagement and Systems of Insight should not be considered in isolation, but as an integrated way of delivering value and an engaging experience that at its foundation is centred on the customer. This taxonomy can be used to illuminate refinements to, or transformation of, a bank’s business and IT strategy to integrate people, process and technology for the customer. A coherent approach for enterprise innovation is required - a holistic, systematic and integrated approach to building systems of engagement, insight and record. Ideally, these systems would be integrated and run on optimized infrastructure enabled by cloud For example, with cloud services, fully integrated systems and processes can be rolled out across the organisation far more quickly and efficiently than with traditional IT capability to meet the changing demands and desires of customers. Moving infrastructure to the cloud can lead to significant efficiency gains and turn capital expenditure into more manageable operating expenses. Also, Cloud enables the composable approach to development Composable development uses the concepts of predefined and reusable components, which can be combined rapidly for agile development. Agile development can accelerate the realignment of systems of engagement, insight and record with changed customer behavior, wants and needs, greatly enhancing business agility in comparison to traditional development approaches. Systems of Record Systems of Record Systems of Engagement Systems of Engagement Enabled by Cloud Pervasive Security Intelligence Cloud enables leaders to take a systematic approach to integrate these capabilities to drive enterprise innovation

40 A phased migration to cloud helps manage risks
Prioritization 1 2 3 4 5 Potential migration risks Phased migration approach Incorrect analysis and identification of workloads Inability to meet non-functional requirements Incorrect ROI analysis Inadequate preparation of infrastructure / apps for cloud Complex applications’ interoperability & integration Failure to comply with security, privacy & regulatory requirements Management complexity as resources get distributed in a virtualized environment Discovery Phase Analysis Phase Migration & Validation Phase Discover current assets and usage topologies & dependencies platforms and licenses SLA’s, security & compliance Analyze cloud feature / fit cloud providers contract models resource sizing workloads Establish the Migration Toolkit Cloud-enable infrastructure & applications Migrate Infrastructure Applications, Platforms and Data Operations Services Validate Migration A structured approach to migration can help eliminate / reduce risks involved in cloud migration

41 Banks can adopt type of cloud that best meets their requirements
Deployment options 1 2 3 4 5 Private cloud Hybrid cloud Community cloud Public cloud Software, hardware and platforms are hosted in a data center owned by a bank used by different departments / units inside of the bank Software, hardware and platforms are hosted both in third party data centers, as well AND inside of a bank organization Software, hardware and platforms can be hosted in third party data centers OR inside an organization Software, hardware and platforms are hosted externally by a third party vendor who manages all aspects of the services for the organization Value drivers … .… Customization, efficiency, availability, resiliency, security and privacy Value drivers … …… Flexibility and benefits of private and public cloud while addressing data security, governance, compliance and budgetary challenges Value drivers … .… Common resources, security, privacy governance, compliance & budgetary challenges Value drivers … .…Standardization, capital preservation, flexibility and time to deploy

42 Most banks use private and community cloud deployment models
Deployment options 1 2 3 4 5 Current cloud infrastructure model for banks1 Private cloud Hybrid cloud Preferred private-cloud infrastructure model2 Public cloud Source: Economist Intelligence Unit Cloud survey commissioned by IBM, unpublished industry data, 2015, [1] Question: 21a. What best describes your cloud infrastructure model now?, n=101 [2] Question: 21b. What is your preferred private-cloud infrastructure model now?, n=91

43 Private cloud can help bank reduce its technology spend and Capex
Business Case 1 2 3 4 5 A. Impact on spend ~50% savings from year 2 can be used for strategic initiatives B. Impact on Opex profile Notes A leading Australian bank is planning to adopt cloud and as a first step is moving its development & test environment requirements for virtual machine and operating system to cloud The bank is planning to build a private cloud The business case computation is based on certain bank specific assumptions Operating System Image (OSI) refers to a virtual machine with required hardware and a Operating System. It does not include development tools nor development efforts The cloud requirements is ONLY for technology requirements and does not include process or people management requirements. And hence the savings is specific to cloud adoption and there may be additional savings if process and / or people related improvements are considered The current costs of USD 82M indicated are for Development & Test OSI workloads only for 5 years It is assumed that within 2 years about 80% workload will be moved to cloud. If the bank decides to move more than 80% OSI images to cloud, then the opex improvement and savings will be more than what is shown. This Opex improvement is based on an agreed workload transition plan. If the actual workload transition speeds up, then the opex improvement will be much quicker than the current forecast of 80% in 2 years Key takeaways The above example is very useful in presenting the potential of cloud benefits to banks – USD 33M savings for 5 years on 21% of OSI workloads can be increased if other workloads are added Nearly 50% savings from year 2 onwards just on adopting cloud. This can be further increased if process and people management improvements are considered Bank’s capex investments reduces significantly and enhances flexibility to try out new ideas for product development (as there is no need to invest bank’s funds for new hardware and OS) Source: The above is based on actual business case developed for an IBM banking client and is used here as a representative example. Actual results for other banks will vary Based on agreed workload transition plan

44 Security, privacy and compliance concerns can be addressed with cloud
Implementation 1 2 3 4 5 As banks start planning to adopt cloud, key questions come up about their data & apps: Where is our data stored? What about data sovereignty? How do we protect our customers’ privacy? How does cloud affect our regulatory compliance? Is a business continuity plan available for cloud? Critical elements to address security, privacy and compliance concerns IT Strategy Risk Management Plan Cloud requirements BANKS Risks of cloud adoption Monitoring & Auditing Cloud SLA Typically, the above questions and concerns are addressed jointly by banks and service providers Agree on security, privacy & compliance requirements Identify physical & logical controls including industry specific controls like PCI DSS Monitoring, auditing and reporting Risk & Security Management processes Physical & Logical controls implementation CLOUD SERVICE PROVIDER Audits & reports Source: Economist Intelligence Unit Cloud survey commissioned by IBM, unpublished industry data, 2015, ‘Question: 24.a Which of the following cloud risks are of greatest concern to your organization?, n=132

45 Cloud is driving a new operating model aligned to business strategy
Implementation 1 2 3 4 5 BUSINESS GOALS AND STRATEGY An operating model is a framework for formulating an operations strategy that best deploys and determine the explicit choices needed to achieve business goals Market shifts in the digital economy necessitate banks to adopt new technologies like cloud, mobile, social media and analytics To succeed with cloud, banks have to assess the impact of cloud on the operating model and all its dimensions and determine what actions are required to make cloud adoption smoother and more successful Target Operating Model Customer Experience Assets & Locations Sourcing & Alliances CULTURE Technology Processes TOM Skills & Capabilities Organization & Governance Performance Metrics ROADMAP FOR CHANGE

46 IBM and cloud

47 Clients conversations on cloud tend to be of two types
Remove this slide before sharing with clients Clients conversations on cloud tend to be of two types Clients who may not have thought about cloud in depth, who may need education Very sophisticated IT buyers who will be most interested in benefits and prioritization 1 2 Banks with low IT Maturity / sophistication may need help to fully recognize the power of cloud computing Areas of this deck to focus on are: Section 1 – this section highlights why cloud is critical for banks, cloud’s potential to transform banks, drive innovation and efficiency improvement Section 2 – this section highlights how banks can go about implementing cloud computing. While the section briefly talks about cloud first strategy, it details out workload assessment, prioritization, business case and migration Section 3 – this section presents a high-level view of IBM’s cloud portfolio Banks with high sophistication and maturity in their IT environment will inevitably be most interested in quantifying benefits of cloud migration, cloud activity selection, and prioritization Areas of this deck to focus on are: Leverage CBM maps for discussing current workload assessment, prioritization and migration At the same time, use examples given to highlight migrating horizontal applications (HRM, CRM, Risk Management etc) using born-on-cloud solutions Use section 3 to present IBM’s cloud solutions

48 ESB – Routing & Transportation
Banks are looking for “solutions as a service” – solutions that go way beyond the “software as a service” model The IBM Payments-as-a-Service solution is a cloud based alternative to the expensive option of banks running and maintaining a complex payments engine in house IBM® and Fundtech have partnered to provide such a solution, called Global PAYplus Services Platform™ It represents a collection of rules-driven payment services designed to allow the orchestration of end-to-end payment processing, data management, and integration across all channels through back-office systems and clearing and settlement systems, using industry standard interfaces. Built on the industry-leading ISV application from Fundtech, hosted on SoftLayer with GBS services wrapped around it Pay-per-use, with guaranteed minimum volumes IBMs FTM product is the orchestration and integration layer, and therefore works with the Fundtech product in this solution. It runs on IBM Power® Systems supported by AIX®, Oracle Java, and Microsoft SQL Server. Fundtech’s Global PAYplus–Services Platform is a shared service framework that includes payments, cash and liquidity management, financial messaging, the financial supply chain Back End Applications Customer Information Systems FX Engine Balance Checking System Accounting Other Data Warehouse Investigations ESB – Routing & Transportation AML MQ Web Service Payment Processing Capture Pre-processing Files & Payments Analysis — Validation, matching Decisions — Which clearing to use Fees, FX, balance checks Completion — Accounting, advices GPP Payments Between multiple countries IT AT DE Bank Operators across different countries Direct Access To GPP

49 SoftLayer has designed and deployed a global, interconnected platform to meet key operational and economic requirements Flexibility, Performance and Automation – Globalization, Transparency and Control. SOFTLAYER CLOUD ARCHITECTURE On demand compute with consumptive billing Common user interface and APIs across a unified platform. Customers can mix and match dedicated, public and private clouds, and manage them from a single control panel Private network provides seamless integration across architectures with low latency Scalable computing with fast provisioning BARE METAL SERVERS Better I/O performance (e.g., no “hypervisor tax”) and network Higher degree of customization possible for hardware, network, security Lower cost for workloads with high server utilization PRIVATE (VIRTUALIZED SINGLE-TENANT) CLOUD Select virtualization of choice Provisioned in minutes Direct VPN to private network created instantly Better security possible than multi-tenant cloud PUBLIC (VIRTUALIZED MULTI-TENANT) CLOUD Customized configuration allowed Open API standards Based upon enterprise Citrix Xenserver Customer can select DC / POD Lower cost for burst workloads Globalization, Transparency and Control So often when I'm talking with clients, we hit on key differentiation points related to flexibility, performance and automation - and all are obviously key to our success.   Today, though, I'd like to focus on three other very important considerations - Globalization, Transparency, and Control. Globalization – You can purchase services on-demand in one of our 13 locations around the world - a number we expect to grow significantly in next 12 months. And we are looking to provide ever increasing levels of localization across the portal, sales, and support functions.  Our plan is to focus on the "biggest reach."   Transparency – This is important because our 3 top competitors do not provide it. Competitors are black box.  In contrast, with SoftLayer you can look inside to see everything from the network topology down to the hardware. That is important not only when you are building and designing applications that live and breathe on the Internet, but also if you have compliance and regulatory needs where you want clear insight into the environment. Control: The API is the essential element to support control... the extensive nature of the API with over 2,000 exposed services - which is 10 times more than the next closest competitor.  We chose to expose everything in our data centers in a hyper-granular API... when we talk about compliance that makes a huge difference. This is where the competition breaks! Their APIs are either on or off at the class level. For an enterprise client who is risk averse, their approach is if we don’t use it – we don’t even want to turn it on.Think about the risk exposure if you had a class with 20 functions and you were only looking to use one – and had to have the other 19 on.  Enterprise clients love the granularity of the API to lock down and build the environment for exactly what they want to achieve. The network is the cloud and the cloud is the network. A final point on the SoftLayer global backbone: We have 20 points-of-presence today and we will expand that significantly in The ability for customers to transport data from site to site free of charge and to  get on our backbone through the closest point of presence – that is huge. And we are the only cloud provider with our own global backbone. Others are rumored to be building that - but we are there today! We pass gigs sustained across our backbone. We house a large percent of the content on the internet! We host 20% of the active domains in the world! The eyeballs of the world are searching for content that ultimately resides in the SoftLayer data centers. Google may know what you are looking for, but SoftLayer actually has what you are searching for! Key competitive factoids about SoftLayer SoftLayer is one of the largest cloud infrastructure providers in the world, with more than 100,000 devices under management for 21,000 customers in 140 countries.   SoftLayer operates a global footprint of 13 data centers and an expansive network of points-of-presence around the world, filled with servers, storage, routers, firewalls and load balancers.   SoftLayer powers 270,000 more websites than Amazon.   SoftLayer offers 1,600 APIs vs. 60 for Amazon Web Services and hundreds of hardware configurations versus 14 for Amazon Web Services.   SoftLayer is almost 10 times faster than Amazon's EC2 small instance and about 30 to 40 percent faster than Amazon's high-CPU model.   SoftLayer provides customers with access to virtualized or bare metal servers from a single client interface, enabling users to get the performance of bare metal as part of integrated cloud architecture.   SoftLayer’s software automates every aspect of Infrastructure as a Service (IaaS) – enabling it to deliver one of the industry’s broadest and highest performing cloud platforms.   Because of its bare metal offering, SoftLayer is better suited to run certain types of workloads (big data, IO intensive) whereby users can expect to experience a performance boost several times faster than Amazon. ...and some fun facts SoftLayer hosts more than 22 million domains. That’s one domain for every person in the 10 largest U.S. cities. SoftLayer's 100,000+ servers weigh about 4 million pounds ... Roughly the equivalent of 264 African elephants. More than 100 million online game players are playing games running on SoftLayer. Reference: Lance Crosby and Jim Comfort differentiate SoftLayer: 21,000+ customers in 140 countries 22,000,000 domains 100,000+ devices 49

50 App development today is about speed and choice
Bluemix design thinking: dynamic composition to accelerate consumer banking omni-channel transformation App development today is about speed and choice Microservices IoT Mobile Design Thinking APIs Extreme Agile Containers Cloud and Bluemix provides developers with instant access to the APIs, services and infrastructure they need to launch their ideas into the present

51 IBM is serving the cloud computing imperatives in banking
Strategize how to use cloud to drive savings and revenue growth. Build and run your private or hybrid cloud. Utilize cloud services delivered from IBM Cloud. Expert Integrated Systems Cloud Strategy and Design Business Process as a Service Cloud Implementation Cloud Platform Technologies Software as a Service Cloud Infrastructure Technologies Cloud Migration Services Platform as a Service Cloud Security Services Hybrid Cloud Technologies Infrastructure as a Service

52 Traditional Workloads
IBM is helping our clients achieve compelling business outcomes, no matter where the entry point is BUSINESS PROCESS as a Service SOFTWARE PLATFORM INFRASTRUCTURE Automating Business Innovation Marketplace of High Value Consumable Business Applications Rapid App Development through Composable and Integrated Platform built using open standards Enterprise Class, Optimized Infrastructure built using open standards Business Process: Marketing Mobile Compute Recruiting Commerce Security Networking Accounting Supply Chain Big Data & Analytics Storage Procurement Talent Management Development & DevOps Payment Processing Analytics Integration Help Desk Collaboration Integration/ API Mgmt. IT Management Traditional Workloads

53 ibm.com/cloud/marketplace
IBM cloud marketplace provides easy access to our as-a-service portfolio IBM CLOUD MARKETPLACE Your gateway to cloud innovation Explore hundreds of IBM and Business Partner services from across the cloud spectrum. Sign up to offer your cloud services in the marketplace today. Enterprise-grade business apps to accelerate innovation (SaaS) Powerful services and APIs via an integrated cloud platform (PaaS) Self-service IT infrastructure configurable to your needs (IaaS) Biz Dev Ops Over 200 IBM and Third-Party Software and Services Easy access to build, consume, deploy and purchase services Leverage world-class IBM partner ecosystem Curated solution pages with IBM expertise ibm.com/cloud/marketplace

54 IBM can support you locally and globally …
Banking Regional Contacts Jon O’Donnell Vice President, Europe GBS Banking & Financial Markets Leader Yoshiki Minowa Vice President, Japan Financial Solutions and Consulting Services Luis Loleo Vice President & Managing Partner - FSS LA Sector Leader Greg Sarafin US GBS Banking and Financial Markets Industry Leader Steve Bingham Managing Partner & Global FSS Leader Asia Pacific Likhit Wagle Partner and Vice President - Global Industry Leader: Banking & Financial Markets [FACE PIC] [FACE PIC] [FACE PIC] [FACE PIC] [FACE PIC] [FACE PIC]

55 IBM can support you locally and globally …
Banking Regional Contacts Banking Global Contacts Robert (Bob) Hoey Vice President, Financial Services Sector, North America R P (Raoul) Engelshoven Van Vice President, Banking and Financial Markets, Europe David K Zimmerman Global Solutions Executive and Worldwide Cloud Leader, IBM Global Banking & Financial Markets Anthony J Lipp Global Strategy Leader Banking & Financial Markets Boxley C Llewellyn Global Retail Banking Director [FACE PIC] [FACE PIC] [FACE PIC] [FACE PIC] [FACE PIC]

56 IBM can support you locally and globally …
IBM Cloud CoC Advisory Leaders IBM Cloud CoC Advisory Leaders Mike Fitzgerald – Partner Global CIO and Cloud Advisory John Ludden – Managing Consultant Cloud Advisory Nathan Herber – Associate Partner Cloud Advisory IBM Cloud Category Leaders James Gianotti – Cloud Industry Leader Cloud Category

57 IBM can support you locally and globally …
IBM Institute for Business Value Contacts Nicholas Mark Drury Global Banking Leader - IBM Institute for Business Value Anthony Marshall Strategy Leader IBM Institute for Business Value Surendra Ramaiah Senior Managing Consultant – Strategy & Analytics

58

59 APPENDIX Target Operating Model IBM Cloud implementation examples
Additional slides

60 Target Operating Model

61 BUSINESS GOALS AND STRATEGY
Cloud is helping banks evolve a new operating model tightly aligned to business strategy Implementation 1 2 3 4 5 BUSINESS GOALS AND STRATEGY An operating model is a framework for formulating an operations strategy that best deploys and determine the explicit choices needed to achieve business goals Market shifts in the digital economy necessitate banks to adopt new technologies like cloud, mobile, social media and analytics To succeed with cloud, banks have to assess the impact of cloud on the operating model and all its dimensions and determine what actions are required to make cloud adoption smoother and more successful Target Operating Model Customer Experience Assets & Locations Sourcing & Alliances CULTURE Technology Processes TOM Skills & Capabilities Organization & Governance Performance Metrics ROADMAP FOR CHANGE

62 Customer experience with banking will drastically change
CUSTOMER JOURNEY 1 2 3 Robert, an young Manager in an IT company, is traveling overseas for a project. He completes a video conference on mobile Skype with his bank’s Relationship Manager (RM) to finalize purchase of property and mortgage. He submits the loan application to the bank on his mobile. Bank processes the loan quickly. It also contacts one of its partners for home insurance. All documents are sent electronically, the insurer completes it without Robert visiting their office. Robert is happy that his bank handled all formalities and was able to complete the property purchase before his travel. He checks his account and confirms that his RM has setup electronic debit for his loan deductions in the first week of every month. 4 5 6 The first weekend in his travel, Robert logs into his bank account using his glasses. He checks the balance on his glasses and issues voice instruction to transfer money to his father’s account. He calls his father to inform him who confirms he has received it. Robert steps out for checking out the new city. As he enters a shopping mall, his banking app picks up two offers from electronics shops (based on his previous searches for iPad Pro). His bank offers him a loan option based on his profile. Robert visits the electronics shop and tries out the new iPad Pro. His bank also offers him enhanced benefits on his loyalty program due to local festivities. He opts for a personal loan and transfers it to his mobile wallet through which he pays for the new iPad Pro.

63 New partnerships and alliances can speed and harden cloud adoption
Sourcing & Alliances IMPACT Organizations will have more partners and alliances through “Services” being offered by outside organizations Complexity will increase in service contracts due to consumption-based billing Service quality and availability need more focus as they are managed through relationships and agreements with diverse third party ecosystem IMPLICATIONS Procurement and sourcing functions will need to be automated and have shortened cycles Vendor and service management will be an integral part of the Procurement function Service level agreements to be defined clearly and governed by the need to secure and protect customer data in a shared environment Service adoption to meet benefits realization needs to be included in the negotiating process

64 Business leaders redesign business architecture and processes to leverage cloud
IMPACT The cloud strategy and technologies will require a shift from systems-based processes to services-based processes Cloud’s speed of service delivery impacts current processes as they need to match and deliver at the same speed Process framework will migrate from functional silos to an integrated set of processes spanning organizational boundaries Cloud’s service composition model provides freedom to engage/disengage functions as needed IMPLICATIONS Traditional legacy processes to be decommissioned or integrated into the new cloud-enabled processes Banks will need control over the continued availability, reliability and utility of the cloud based processes and the platforms underpinning them Dynamic processes for billing and allocation of resources are required to not be an impediment in achieving value Processes to be made simpler and faster

65 Cloud will promote change in organization design and governance
Organization & Governance IMPACT Major shift in how the new environment is managed and operated will have significant impact on the optimum organizational structure required in the future Organizations and functions will no longer be constrained by the physical location of data centers, hosting providers and hardware platforms As products and services become more ‘composable’, Governance across the ecosystem will become critical IMPLICATIONS Organizations will become more flexible, managing a fluid set of internal / external resources and service providers Governance becomes more centrally defined with decentralized execution Cloud service selection should follow the overall enterprise cloud governance standards Strong risk management systems are critical to manage increasing risks arising out of broader cloud deployment Current organization need to evolve Organization Design, roles and responsibilities Management systems

66 Organizations will overhaul performance management to optimize value from cloud
Performance Metrics IMPACT Cloud requires a dynamic financial model that measures consumption With the change in business model, new metrics that measure service availability, service quality, responsiveness, ability to change will gain more importance IMPLICATIONS Performance management strategy introduces new levels of complexity in management reporting Performance metrics are built into third party and service management contracts for all vendors delivering the cloud based service Dynamic metrics tied back to SLAs will be critical for measuring success for cloud based services

67 Cloud will drive rapid change in enterprise skills and capabilities
Skills & Capabilities IMPACT Cloud brings customer centricity to focus which makes customer and service orientation skills critical within the bank Vendor management, contracting and relationship management skills will be critical to manage all the vendors and alliances IMPLICATIONS Deeper data analytics and customer insight capabilities will be the norm Training of staff on new skills required related to new and innovative services Existing IT and other functional staff will likely need to be retrained or redeployed Legal / operational support skills will be key to manage partnership agreements Skills shift to managing vendor contracts and relationships of many vendors

68 Banks will benefit from cloud most when they accelerate adoption of other emerging technologies
Technology IMPACT The technology function will be leaner with a more strategic focus rather than operational Cloud’s big impact on Technology will be to move on-premise technology deployment to cloud As more services migrate to cloud, Service Management, IT Vendor management and IT Quality management will become key differentiators IMPLICATIONS IT Strategy, Architecture and IT Plans to be reviewed and updated to reflect changes in business strategy and cloud-enabled future bank IT teams need to be retrained and redeployed Budget for the maintenance of legacy systems may reside, so they need to be budgeted and worked into the overall costs An IT services catalog needs to be dynamic globally and be applicable for each market A DevOps approach will be required to get the cloud service delivered faster to achieve value

69 Cloud enables more efficient location strategies
Assets & Locations IMPACT Migration to the cloud will require decommissioning and consolidation of technology assets Decommissioned assets and locations will be a factor in the future state financial model Removal of physical / technology assets will reduce the quantity of needed remote offices and data centers IMPLICATIONS Decommissioned technology assets may still book value and impact the existing operating budget One-time financial write-offs will need to be factored into the overall business case Excess data centers and remote locations will have to be repurposed or sold / leased to recoup cost Role of branches need to be redefined and enhanced to provide a much better customer experience

70 Cloud-enabled organizations will rethink and recalibrate organization culture
IMPACT The shift to a cloud-based environment will also require changes in long-held organizational beliefs and cultural norms Banks as a whole need service-orientation, with a shift in mindset toward valuing the customer experience above all else Open and collaborative reporting and management across organizational functions and units facilitates faster customer response IMPLICATIONS Need to address perceived loss of control / potential resistance by existing IT and other functions whose processes will move to cloud Need to educate employees on this shift: How will our culture change, and why? What is the risk if we do not make this change? What would be the consequences of continuing as is? Requires reinforcement of expected behaviors through formal and informal mechanisms and interventions Requires changes in Leadership Behaviors People practices Regular communications on changes

71 IBM cloud implementation examples

72 A bank in Japan uses customer analytics to enable more personalized engagement and more effective campaigns This bank in Japan operates nearly 200 branches in Japan and other areas in Asia CHALLENGE When this bank saw deeper customer engagement as essential to its growth and profitability, it knew that having solid, data-driven insights on customer behavior and preferences was the foundation. The real key, it recognized, was to infuse these insights into customer touch points such as outbound campaigns and inbound calls. SOLUTION The bank is using cloud-based behavioral modeling to find service propensity patterns across its customer segments. And it’s incorporating those insights directly into its campaign management and inbound customer interactions to deliver a more personalized experience across all channels. Effectiveness – 20% increase in conversion rates for marketing campaigns expected Customer satisfaction – Improves satisfaction by providing customers with a more personalized and relevant experience Efficiency – Increases efficiency of marketing operations by significantly shortening the marketing campaign cycle Link to Reference Profile: Source:

73 Bank significantly reduces deployment time and achieves optimized resource use by implementing virtualization and cloud computing One leading Chinese commercial bank is constantly seeking ways to set itself apart from its competitors and boost profitability CHALLENGE A leading Chinese commercial bank wanted to boost the flexibility and efficiency of its operations in order to better react to customer demands, and stay ahead of competitors. SOLUTION Partnered with IBM to launch a virtualization strategy, supported by servers with IBM® POWER7® processors and IBM PowerVM® technology, as well as the IBM SmartCloud™ Entry solution. Flexibility – 99% increase in flexibility & workload deployment by implementing a virtualized computing environment Resource utilization – Optimized resource use, helping to cut costs and complexity. Source:

74 A leading Card Management System vendor now offers its system as Software as a Service based on an IBM PCI DSS Cloud Platform A global provider of card payment solutions and IT consultancy to 120 international and domestic banks, service providers and retailers to enable 7 mn transactions per hour, 1 mn merchants & over 60 mn cards Challenge The client were looking for a resilient and PCI DSS compliant infrastructure in continental EU to start offering its card solution using a private cloud. Solution The client deployed a private cloud architecture hosted at a pair of data centers and designed to feature numerous physical and logical security measures. IBM manages this environment around the clock. Availability – High availability (99.999%) in a PCI Compliant multisite data center scenario in Europe with disaster recovery between data centers Enabling a CSP – Flexible pricing and architecture to let the client became a Cloud Service Provider Time-to-market – Fast time-to-market avoiding to buy assets & breaking barriers at customers. Source:

75 A bank in the US protects retail and commercial customers from cybercrime with advanced cloud-based fraud prevention solution This bank in the United States provides a full line of retail and commercial banking products through 13 full-service branch offices in a large metropolitan area CHALLENGE This bank saw many security risks targeted at both commercial & retail customers. Despite having numerous fraud-prevention solutions, the bank sought to implement an extra level of security that would be easy to maintain while keeping costs under control. SOLUTION A cloud-based security solution facilitates clientless detection of malware attacks and infected devices. Using over 40 million endpoints worldwide, the software collects intelligence on active phishing and malware attacks, then applies behavioral algorithms to detect, block and remove security threats, including new variants. Speed – 72 infections detected and removed from customer devices in the first month of implementation Resolution –helps prevent potential losses by detecting and resolving malware infections Customer loyalty – Increases loyalty from customers through proactive efforts to resolve security issues Link to Reference Profile: Source:

76 Additional slides

77 IBM has helped banks in cloud-enabled business and operating model innovation
GE Capital1, using IBM’s BlueMix, built a cloud- based DevOps platform to accelerate software delivery and time to market Built software and apps, including the award winning GE Capital Bank, from the scratch in weeks rather than years DevOps capability provides GE Capital Bank with the agility of a startup and the resources of a large enterprise Sun Trust Bank2 implemented IBM WebSphere Cast Iron cloud integration to connect back-end enterprise applications, the company’s shared services, and the cloud Integration enhances the way relationship managers work with customers, even when they are not directly connected to bank’s back-end systems Provides access to accurate information, reducing delivery times for customers Commercial bank in Nigeria3 captures market share of first-time bankers when it deployed a private cloud environment based on IBM Power Systems technology New solution enables the bank to save an additional 30 percent of its mobile banking revenue, previously forfeited The examples shown above have been selected to illustrate cloud’s role in business and operating model innovation. Source: [1] [2] [3] Source: See speaker notes

78 IBM is helping leading banks capture the financial and strategic benefits of cloud
Operating Efficiency Operating Efficiency Revenue Growth 40% reduction in total cost of ownership Improve the advice & experience delivered to customers¹ Single view of customer drives new revenue BUSINESS SERVICES A major bank in Brazil1 The bank reduced total cost of ownership by 40% by creating an inter-site cloud to host previously existing physical servers. COGNITIVE BANKING DBS Bank Singapore2 DBS is using Watson’s cloud based service to "redefine" how voluminous amount of data, structured and unstructured, can be analyzed to provide intelligence that was previously not "humanly" possible. ANALYTICS A leading Polish bank1 Data can now be entered into the system once, giving the bank a 360-degree view of customer data—which embedded analytics can use to help generate more sales. Source: [1] IBM’s experience with clients [2] Source: See speaker notes

79 Cloud has helped early-adopters motivate new forms of innovation and collaboration
Cloud promotes standardization, supporting flexibility and agility Cloud supports refocus on customer experiences, integrating disparate set of processes designed and engineered to provide customer value Cloud supports next generation marketing and omni-channel interactions that are of interest to customers where, when and how they want to be engaged Cloud is transferring various functions such as IT, from fixed cost centers to variable cost structures Under Cloud Cover survey: How leaders are accelerating competitive differentiation 69% achieved rapid innovation of novel products and services of the banks 56% reinvented their customer relationships in response to changing dynamics of the banks 51% increased engagement and collaboration across organization and ecosystem (colleagues, partners, customers) of the banks Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation. For more info, visit: ibm.com/ibmcai/globalcloudstudy

80 A 35% partial workload migration to cloud helps bank improve its profits and reduce costs
Illustrative NOTE: This is an alternative slide for Slide#22. Brief description of the above example The data presented is for a representative bank using similar data of leading banks Financial data of the bank assumed as Bank’s assets: $592 bn Bank’s revenue: $15.8 bn Bank’s operating costs: $6.7 bn IT costs**: $1.04 bn (assumed to be at 6.6% of revenues – see notes below) Expected Costs & Savings Cloudable workload: 35% Current costs on cloudable workload: $366 mn IT Savings due to cloudable workload: 60% on current costs $220 mn per year In the above waterfall chart, Bank’s total operating costs of $6738 mn includes IT costs IT costs of $1045 mn includes $336 mn of current costs of cloudable workloads Savings of $220 mn is projected as arising out of migration of 35% workloads to cloud Notes on IT Costs calculation: Based on Gartner’s IT Key metrics data, a 6.6% IT Costs on revenue is assumed (Source: Current costs on cloudable workload is also assumed to be 35% of total IT costs. This is a simplistic view though some additional factors may need to be considered and the costs may need to be adjusted accordingly. This can be done while developing business case Typically 30% to 80% savings is expected for moving workloads to cloud. Based on a business case developed for a bank, for the above example a 60% savings is expected with assumptions. These numbers will vary from bank to bank The impact on bank’s total costs and PBIT does not consider any other factors and assumed to be constant for this comparison. While developing a business case, more data can be obtained to validate impact of various factors on bank’s operating costs Improvements in banking operations Customer centric operations: Enhanced customer engagement through use of social media helps the bank put customer in focus and drive rest of the operations supporting it Increased collaboration, capability & reach: Increased collaboration with partners both banking and non-banking enables bank to do more for their customers Focused selling: Increased use of near-time analytics and targeted marketing campaigns Rapid turnaround time: Simple and faster internal processes make banks more responsive and efficient Shorter time to market: Enhanced / new products and services leveraging mobile and cloud Service orientation: Cloud forces banks and its teams to think “services” as part of their day-to-day work Improvements in banking operations Enhanced customer centric operations Increased collaboration, capability & reach Focused selling Increased efficiency with rapid turnaround time Shorter time to market Enhanced service orientation Revenue PBIT Op. Costs (excl IT Costs) **IT Costs Current Costs for cloudable workloads Projected Savings due to 35% migration ** IT Costs is estimated at 6.6% of revenue using Gartner’s IT Key Metrics data Note: The above is a representative example only

81 Regulatory authorities have recognized cloud’s role in banks’ business transformation, operational efficiency and innovation…….they are in various stages of evaluation to provide necessary guidelines in cloud usage 1 De Nederlandsche Bank (DNB), the Netherlands’ national banking regulator, has approved use of cloud in the country’s financial sector subject to its guidelines 2 Reserve Bank of India (RBI), the Indian banking regulatory authority, has recommended an approach for cloud computing for Urban Cooperative Banks IDRBT has established an Indian Banking Community Cloud IDRBT has developed a Cloud Security Framework for banking industry IDRBT - Institute for Development and Research in Banking Technology (established by RBI) Source: [1] [2] [3] TECHNOLOGY RISK MANAGEMENT GUIDELINES JUNE 2013 published by Monetary Authority of Singapore DNB Netherlands Dutch banks and other financial institutions can use cloud for a range of services including websites, mobile applications, retail banking platforms, high performance computing and credit risk analysis solutions RBI India It has released a Working Group report with its recommended approach on Cloud computing option for Urban Cooperative Banks Institute for Development and Research in Banking Technology (IDRBT) (established by RBI) has developed a Cloud Security Framework for the Indian Banking Industry to understand and explore security concerns in the Cloud environment IDRBT has established an Indian Banking Community Cloud, offering cloud services for banking sector 3 Monetary Authority of Singapore has approved use of cloud subject to completion and approval of Technology Checklist and rights to conduct its own audit Source: See speaker notes

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83 Download materials: ibm.biz/BdHLaT
Agenda today IBV Cloud industry program Cloud banking industry POV Using cloud banking industry POV with clients QA Download materials: ibm.biz/BdHLaT

84 Ways that materials can be used
Decks Presentation deck for cloud discussion Extract slides for pitches and proposals Extract slides for deliverables Executive Summaries Send to client to demonstrate IBM thought leadership in Cloud Refer client to IBM.com site Refer client to IBV App Print Executive Summaries via POD and give physical copies and distribute in workshops, conferences etc. Download materials: ibm.biz/BdHLaT

85 Download materials: ibm.biz/BdHLaT
Agenda today IBV Cloud industry program Cloud banking industry POV Using cloud banking industry POV with clients QA Download materials: ibm.biz/BdHLaT

86


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