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Accelerate Digital Transformationsin Financial Services with AWSDiscover how AWS Edge services enables the next phase of digitaltransformation in financial services1
3Digital Transformation in Financial Services4Unlocking the Next Steps With AWS Edge Services5AWS Edge Services for Financial Organizations6Introduction to AWS Outposts7AWS Outposts: Connecting on Premises With the AWS Region8Security in AWS Outposts9Customer story: Enabling Multi-Stage Transformation at Morningstar12Sector Focus: Capital Markets, Banking, Payments, Insurance and Fintech13Customer Story: Solving Data Residency Challenges in Banking14Next Steps 2
Digital Transformation in Financial ServicesMobile technologies, machine learning, real-time datacombat fraud and cybercrime, and continue to meet stringentprocessing, blockchain, and many others, have transformed thesecurity and regulatory requirements, cloud computing providesworld of financial services into one that’s markedly differenta powerful platform for innovation.compared to even just a decade ago. These technologies areunleashing completely new business models. In their BeyondCloud computing also gives flexible access to proventhe Everyday Bank paper, Accenture estimates that new waysinfrastructure, services and tools to help businesses across theof doing business will have impacted up to 80% of existingfinancial sector test new capabilities quickly, then scale thembanking revenues by 2020.1into production.It’s not surprising, therefore, that technology remains front-Blending public cloud with edge, on-premises and beyondand-center of financial services organizations’ agendas. AndHowever, requirements for low-latency, local data processingPwC’s 19th Annual Global CEO Survey found that 81% ofor data residency, can mean the public cloud isn’t suitable forbanking CEOs are concerned about the speed of technologicalcertain financial services workloads.change – more than in any other industry sector.2This is where hybrid cloud – a blend of public and on-premisesWhy cloud capabilities are keyor edge cloud infrastructure – makes the difference, byWith financial services organizations looking to bring newunlocking elements of digital transformation that haven’t yetproducts and services to market quickly, enable morebeen feasible in financial services.personalized customer experiences, unlock better use of data,3
Unlocking the Next StepsWith AWS Edge ServicesAWS provides a broad portfolio of services that run at the network edge.These bring powerful data processing and storage as close to the end-pointas necessary. This enables financial services organizations to benefit fromcloud-style infrastructure, services and tools, while meeting their lowlatency, local data processing and data residency requirements. By doingso, AWS edge services unlock the next phase of digital transformation infinancial services and fintech.Drive more value from dataNew developments in data processing capabilities, analytics, artificialintelligence, machine learning and other innovations, mean freshopportunities are continually emerging for financial services organizationsto unlock greater value from their data. Drawing out new, Know YourCustomers (KYC) insights to drive decision-making is a key example.Leveraging these capabilities requires powerful compute infrastructure,large, use-case-optimized storage solutions, and access to ready-made dataplatforms and tools to accelerate time-to-value. However, sending theseLegacy liberation to enable greater responsivenessAlongside any greenfield developments in the cloud, most financial serviceslarge volumes of data to and from the public cloud may not be practical orcost-effective. The solution is to deploy cloud-style services closer to thedata or end-point.organizations have cumbersome legacy technology underpinning core partsof their operations.Transforming these systems is challenging. Applications may have latency-Meet data residency requirementssensitive interdependencies with other on-premises workloads; movingcomponents to the public cloud therefore risks disrupting the business.In parallel with the challenges set out above, many financial servicesorganizations will be required to comply with local, contractual orTo transform these applications, careful planning of the multi-stagegovernmental data residency requirements, which stipulate where datajourney is essential. The process will typically need to begin with on-must be processed or stored. For some financial services organizations,premises modernization, to accelerate development and reduce risks, whilethere may not be a public cloud facility in the specified location. Tomaintaining access to local databases. Later phases can see parts of thetruly transform these parts of their operations, businesses need anapplications migrated to the public cloud.alternative way of accessing cloud-style capabilities.4
AWS Edge Services for Financial sAWS StorageGatewayAWS IoTGreengrassAvailabilityZones (AZ)AWS Wavelength5G NetworksPoints ofPresence(PoPs)AWS CloudEnd-to-end: Security Development Deployment ManagementAWS OutpostsOn PremisesAmazonCloudFrontAWS Local ZonesMetro CentersFree RTOSAmazonSageMaker Neo Reduce latency, process data locally, and control where your data residesAWS Edge Integrate with a broad set of cloud services and edge specific capabilities Reduce cost of development with single programming model5
Introduction to AWS OutpostsAWS Outposts is a fully managed servicethat extends familiar AWS infrastructure,services, APIs and tools into virtuallyany data center, colocation space oron-premises facility. This is perfect forfinancial services workloads that need tomeet data residency requirements, localdata processing needs, or require lowlatency access to on-premises systems.Financial services organizations can run applications onOutposts using a range of Intel-powered Elastic Compute Cloud(Amazon EC2) instances, and run containerized workloads withAmazon Elastic Container Service (Amazon ECS) and AmazonElastic Kubernetes Service (Amazon EKS). Additionally, datacan be stored locally using Amazon Elastic Block Store (EBS),Amazon Simple Storage (Amazon S3), Amazon RelationalAt-a-Glance: Benefits of using AWS Outposts forFinancial ServicesAccess flexible and scalable compute and storageStore and process data in local data centers, colocationspaces, on-premises facilities or beyond the network edgeFinancial-services-grade security and high-availability Services and tools to support fast product development andoperation across the cloud, edge, on-premises and beyondConsistency for developers and operations teams acrosson-premises, the edge and the cloudA platform for multi-stage legacy modernizationDiscover more about AWS Outposts hereDatabase (Amazon RDS) or ElastiCache, while leveragingAmazon EMR for analytics.6
AWS Outposts: Connecting on Premises With the AWS RegionDiscover how AWS Outposts creates a secure bridge between on premises environments and the local AWS Region.AWS Outposts connects to the customer’s nearest AWS Region, using AWS Direct Connect or VPN, for low latency access to on-premises resources.7
Security in AWS OutpostsSecurity and resiliency are AWS’s highest priorities, and AWS understandsRegulatory compliancethe unique security, regulatory and compliance requirements that financialTo enable financial services clients to meet their regulatory requirements,services and fintech businesses face. On Outposts, as on the rest of AWS,AWS Outposts is in scope of several AWS assurance programs. As ofcustomers benefit from controls that have been tested and validated byNovember 2020, these include:third-party auditors: AWS monitors, patches and updates customers’ Outposts infrastructure. Outposts hardware runs in an enclosed, lockable rack withtamper-detection. Every host contains an AWS Nitro Chip. The Nitro System continuously PCI ISO HIPAA BAA IRAP MTCS (in specified locations) ENS High SOCmonitors, protects and verifies Outposts hardware and firmware.Outposts is also undergoing Joint The Nitro System security model is locked down, to prevent administrativeaccess, including by Amazon employees.Authorization Board review forFedRAMP and DoD CC SRG(up to IL5). Customer data is encrypted at rest in the Nitro System in each host.The encryption key is wrapped to an external key, in a removable deviceFind out more about thein each host. Destroying the device is equivalent to destroying the data.AWS Compliance Programand the services in scope. Customers can access a range of AWS tools, controls, resources andfinancial services security expertise to protect their workloads.8
Customer Story: Enabling Multi-Stage Transformation at MorningstarMorningstar helps individuals reach their investment goals by providingtailored advisory services, based on its proprietary research and data. Keyamong its operations are bespoke applications.The outcomesAdopting Outposts has enabled Morningstar to pursue a two-stage migrationstrategy, with workloads initially lifted to Outposts to maintain low-latencyThe challengeMorningstar wanted to modernize its software and data-collection systems,leveraging cloud services. Low-latency demands of its real-time investmentresearch and insights services meant it needed certain workloads to remainon-premises, at least initially. The business wanted infrastructure that couldprovide an enhanced level of security to protect and store their customerconnectivity, and then seamlessly migrated to the local AWS Region once thebusiness is ready.The consistency across on-premises and the cloud has benefited Morningstar’sdevelopment teams, while the organization is also enjoying streamlined operationsand increased end user satisfaction.data, while also eliminating the overheads associated with managing andmonitoring different platforms on-premises and in the cloud.“As we continue to modernize our data collection and software, we wantThe AWS solutionMorningstar selected AWS Outposts as a key pillar in its transformationjourney, due to it’s variety of Edge services, and single programmingmodel. Outposts is enabling the business to run virtual machines andcontainerized workloads on-premises, with low-latency links to otheron-premises applications. AWS gives Morningstar the ability to simplifytheir storage management with Amazon Storage Gateway, protectingto create a containerized hybrid infrastructure and easily deploy usingAWS services. With AWS Outposts, we can build once and run applicationson-premises and easily migrate our applications to an AWS Region wherepossible. Ultimately, this allows us to accelerate the adoption of cloudtechnologies within our development teams, keep up with acceleratingbusiness and customer needs, and support our long-term journey to thecloud.” - James Rhodes, Chief Technology Officer at Morningstar Inc.customer data with the durability and security embedded within all AWSCloud storage services.The Outposts environments provide a truly consistent hybrid experienceacross on-premises and the cloud, with full management and monitoringby AWS.9
Sector Focus: Capital MarketsSector Focus: BankingCapital markets firms, including stock and bond markets, tradingFor banks, the ability to respond fast to customer demands and competitorexchanges, and investment businesses, are seeking to re-think and re-activity has never been so important. Established players face a particularengineer their operating models, implement cost savings and boostchallenge, confronted by increased competition from disruptors with lowerefficiency. The aspiration is for the next wave of digital transformationcost bases and minimal legacy technology hindrance.to accelerate go-to-market, enhance security, enrich customerexperience and enable better data-driven decision-making.To remain competitive, all banks must reduce time-to-market, enhancecustomer experiences and refine personalization. At the same time, the needAWS Outposts empower these businesses with: The ability to run ultra-low-latency applications across Outposts andthe wider on-premises network, with the sub-millisecond responsetimes needed for high-frequency tradingAnalytics platforms capable of processing vast amounts of market andtrade data, with Amazon EMR on Outposts and links to artificialintelligence and machine learning tools at the edge and in the localAWS Region A platform for innovation and legacy modernization, where newtechnologies can be leveraged quickly and cost-effectivelyRobust security control over the location of the infrastructureto comply with strict security, compliance and regulatory requirements isever-present. AWS Outposts supports banks of all sizes in meeting theseneeds, by enabling:Multi-stage transformation of legacy applications, unlocking fasterdevelopment, roll-out and scaling of state-of-the-art banking services,using capabilities such as EC2, EKS, ECS and ALBMaintenance of low-latency links to on-premises workloads, via LocalGateway Support for next-generation data capabilities that driveimproved personalization, with Amazon EMR and links to artificialintelligence services at the edge or in the AWS RegionControl over the location of data being processed and storedThe elimination of many overheads associated with legacy IT,freeing up resources to be redeployed on innovation10
Sector Focus: InsuranceTechnology modernization is a big topic in the insurance industry. The costand complexity of maintaining and renewing legacy systems are holdingback innovation.Customer Testimonial: DXCBy transforming these critical parts of their businesses, insurers can enhancecustomer experiences, boost agility, transform their risk-identification“At DXC, we pride ourselves in delivering innovative insurance solutions.approaches, and deliver truly personalized insurance products.We tested DXC’s Assure Digital Platform on AWS Outposts and arepleased with the consistent performance results for managed on-AWS Outposts supports these aims by providing: A platform to modernize legacy applications and databaseson-premises, protecting complex dependencies and meeting dataresidency requirementspremises workloads. DXC is excited to bring a truly consistent hybridcloud experience on-premises with AWS Outposts for our customers whoneed to meet stringent data residency requirements and a more flexiblecloud journey.” - Brian Bacsu, Digital Insurance Platform Engineering andOperations, DXC Technology Access significant capital outlay State-of-the-art analytics capabilities with EMR, with the option to linkto artificial intelligence services at the edge and in the AWS Region, tosupport risk-analysis and personalizationReduced maintenance overheads, freeing resources to deliverthe transformation11
Sector Focus: Fintech Productand Service VendorsFintech businesses form an essential part of the financial servicesmarketplace, providing the products and services on which organizationsacross capital markets, banking, payments and insurance can rapidly buildout new offerings.With fintech organizations’ customers becoming used to accessing digitalofferings as-a-service, fintech providers and independent software vendors(ISVs) are moving to offer their products in this way wherever possible.AWS Outposts supports them on this journey, by providing: The ability to deploy products either on-premises or in the AWS publiccloud, to meet customer data residency, low-latency or local dataprocessing requirements Scalable compute, storage and other services, to underpin modernfinserv products, while offering attractive pricing models forcustomers of all sizes Consistency for developers and operations teams across the AWSservices, tools and APIs used on-premises and in the cloud Infrastructure and services that meet stringent financialservices sPayments providers are looking to digital transformation to support realFor banks, the ability to respond fast to customer demands and competitortime business decision-making, adapt to changing customer requirements,activity has never been so important. Established players face a particularprocess global digital payments, increase agility and scale to meetchallenge, confronted by increased competition from disruptors with lowerunpredictable levels of demand.cost bases and minimal legacy technology hindrance.AWS Outposts provides the platform for next-stage digital transformation,To remain competitive, all banks must reduce time-to-market, enhanceby delivering:customer experiences and refine personalization. At the same time, the needto comply with strict security, compliance and regulatory requirements isLow-latency links via Local Gateway between on-premises workloadsever-present. AWS Outposts supports banks of all sizes in meeting theseand those leveraging AWS services on Outposts, to enable and improveneeds, by enabling:payment transaction gateways and overall ways of workingMulti-stage transformation of legacy applications, unlocking fasterReal-time data analysis capabilities, to monitor for fraud and supportdevelopment, roll-out and scaling of state-of-the-art banking services,critical business decisions, such as how much credit to offer ausing capabilities such as EC2, EKS, ECS and ALBparticular customerMaintenance of low-latency links to on-premises workloads, via LGWAmazon EMR enables local processing on Outposts, with links toSupport for next-generation data capabilities that drive improvedartificial intelligence capabilities at the edge and data lakes in thepersonalization, with Amazon EMR and links to artificial intelligenceAWS Regionservices at the edge or in the AWS RegionInstant scalability, using ECS, EKS and ALB to handleControl over the location of data being processed and storedunpredictable transaction volumesThe elimination of many overheads associated with legacy IT,The ability to meet stringent security requirements, such asfreeing up resources to be redeployed on innovationPCI-DSS Control over the location of payments data, asrequired in certain jurisdictions12
Customer Story: Solving Data Residency Challenges in BankingA well known financial services organization offers corporate, investmentBy deploying multiple Outposts the bank has the redundancy in place toand personal banking services.meet its business continuity requirements around these workloads.And the use of AWS Control Tower has enabled it to implement rigorousThe challengegovernance and safeguards across its full AWS estate, which includes bothThis organization had a vision for next-generation customer offeringsOutposts and workloads in the AWS Region.across e-wallet, mobile payments and banking. It wanted to leverageAWS capabilities to deliver these, but needed to comply with local dataresidency requirements, which stipulated that data must remain within theirThe outcomesconstituency. As well as this, it wanted to retain its level of security acrossDeploying AWS Outposts enabled an accelerated digital transformationall datasets while processing and managing data locally. It needed to ensureby providing the tools to analyze data at massive scale, while meetingappropriate business continuity around these critical services, by eliminatingdata residency and security requirements. By using AWS Edges services,single points of failure.it was able to successfully launch new e-wallet, banking and mobilepayment services.The AWS solutionMoreover, by providing a unified setThis bank selected AWS Outposts as the foundation for its next-genof infrastructure, services, APIs andbanking services. This would enable its technology teams to deploytools across its on-premises and cloudmodern, containerized workloads, while keeping control over where theenvironments, the bank has seen andata was stored and processed. AWS Outposts also builds on the AWS Nitrouptick in its development and operationssystem technologies that enables AWS to provide enhanced security thatteams’ productivity.continuously monitors, protects, and verifies Outpost’s instance hardwareand firmware.13
Next StepsAWS Edge services can unlock the next step in financial services digital transformation.Using Outposts, organizations of all sizes can experience all the advantages of thehybrid cloud, while meeting their low-latency, local data processing and dataresidency requirements.1. Engage2. Choose3. Install and LaunchReach out to your account team orSelect your size and then orderAWS will install and deliver yourfill out our contact form.the Outpost rack configuration thatconfiguration. Use standard AWSAlternatively, go into the AWSbest suits. Custom configurationManagement Console.is available. or Management Console to APIs launch and run AWS resources locally.Learn morehttps://aws.amazon.com/outposts1 https://www.accenture.com/ bank-pdf.pdf2 s/pdf/technology2020-and-beyond.pdfIntel Xeon Scalable processors
Mobile technologies, machine learning, real-time data processing, blockchain, and many others, have transformed the world of financial services into one that’s markedly different compared to even just a decade ago. These technologies
