Cloud-Ready Infrastructure for Financial Services

A new era of financial services has arrived. Is your organization ready?

1 Financial Services Industry Trends

2 The Foundation for Emerging Technologies

3 Prioritizing Compliance and Security

4 Monetizing Your Data

5 Infrastructure That Makes Business Sense

6 Customer Stories

Financial Services Industry Trends

The rise of new technology and new competitors has upset the financial services industry. As disruption continues, only the innovative will survive.

Here come the fintechs.

The finance industry is evolving so quickly that the technology from even a decade ago is nearly unrecognizable. Nimble, tech-savvy competitors are entering the field and eroding market share of current players, while regulation—particularly concerning the security of consumers’ personal information and their control over it—is becoming increasingly complex. Traditional financial institutions face a stark reality: adapt or fall behind.

Fintechs are entering the competitive field unburdened by outdated infrastructure, sprawling branch networks, or tight regulation. These companies take advantage of the latest technology and big data analytics to quickly deliver new products to an expanding market. To compete, traditional finance and banking institutions must follow the fintech playbook by modernizing their infrastructure, utilizing big data, and creating a clear path to the cloud.

Rising consumer expectations.

Increasingly, consumers expect technological excellence from their financial institutions, and they make their displeasure known.

In 2016, about one in nine North American consumers switched banks. Millennials are even more fickle. During the same period, about one in five adults age 34 or younger switched banks. Another 32 percent said they would switch in the future if another institution offered easier-to-use digital banking services.

What are consumers looking for? The ability to do their banking business wherever and whenever they want. In fact, seeking a better mobile app experience is now the third most common reason for switching banks—surpassing security concerns and customer service failures. When a bank’s mobile offerings fall short, the consequences can be profound, far-reaching, and extremely difficult to rectify. And subpar technology is as bad as no technology at all. In a recent survey of UK bank customers, just one in four said they were able to do everything they wanted using a bank’s mobile app, and only 34 percent found their bank’s app easy to use.

The freedom to innovate.

Oracle Engineered Systems such as Oracle Exadata allow for faster workload processing and access to data. This creates the foundation to allow financial companies to embrace emerging technologies and create new technologies to service their customers in a more scalable and efficient way. Oracle Engineered Systems are integrated and optimized to work with Oracle Database. This gives finance companies the cloud-ready foundation on which they can foster open banking collaboration and employ new technologies such as Artificial Intelligence (AI) and blockchain to drive efficiencies and quickly take new innovative services to market.

Why do 10 out of the top 10 banks run Oracle Engineered Systems? To minimize their security threats, maximize data access, and reduce costs through operational efficiencies. Learn more

The Foundation for Emerging Technologies

Traditional financial services organizations are partnering with fintechs to harness technical expertise and foster innovation.

APIs and open banking foster collaboration.

To accelerate their digital transformation, traditional financial institutions are partnering with fintech startups at an exponential rate. In fact, PwC’s Global Fintech Report 2017 found that 82 percent of mainstream financial institutions expect to increase their fintech partnerships in the next three to five years.

One promising development is open banking, a set of standards initially developed in the UK that permit financial institutions to exchange information easily and securely. Under the Open Banking Standard, banking data is shared through secure APIs that allow third-party developers to create services and tools for banking customers. Using APIs, the bank’s mobile app acts as a hub through which consumers can access extensive information about their finances, such as spending insights, location-based intelligence, and links to retailer loyalty programs.

Blockchain adds transparency and streamlines the back office.

Helping to facilitate the transition to open banking is blockchain, a technology that creates and appends a shared accounting ledger for financial transactions that is visible to and verified by all parties. This process decentralizes transactions and tracks them securely using cryptography for faster, more-automated processes. The beauty of blockchain is that it eliminates intermediaries while increasing visibility.

Cryptocurrency is the most common example of blockchain, but the technology also has the potential to remove cost and complexity from financial institutions’ back offices. Blockchain could eliminate multiple subledgers, create permitted trading and settlement communities, and eliminate duplicative and costly reconciliation and error-correction processes. As the technology matures, it has the potential to replace legacy banking processes at scale.

Artificial intelligence makes banking more personal.

Artificial intelligence is poised to transform the banking industry. High labor costs are an ongoing concern for banks and financial institutions. The rise of AI is expected to not only decrease labor costs, but also support a more personalized consumer experience, thereby boosting both the top and bottom lines.

Be ready for emerging technologies with engineered systems.

New technologies such as AI depend on massive data inputs to be effective. Big data is already empowering traditional banks to meet consumer expectations, and the need for speed, power, and scale will only grow in the future. To support this growth, enterprises require Oracle’s cloud-ready Engineered Systems, specifically designed for financial and big data applications, with hardware and software that has been coengineered to work optimally together with Oracle Database. Oracle Exadata minimizes the extent to which provisioning infrastructure impedes application development efforts and ensures that higher-quality and robust data flows through to business applications. This results in 34 percent less time to develop and deploy an application on Oracle Exadata.

Easynvest triples transaction speed.

São Paulo–based brokerage firm Easynvest has always been on the cutting edge. It was one of the first brokerage firms in Brazil to offer its customers online investment services, and it launched the first fixed income mobile app in Brazil several years ago. But staying on the cutting edge requires technology that can keep up with customers’ demands for new and innovative services, and Easynvest needed to ensure its infrastructure was fast, secure, and highly available to continue innovating.

Easynvest made the decision to migrate its two main database servers and central storage to Oracle Database Appliance to support its internal and external applications, resulting in 100 percent uptime for its customer portal and 3 times faster transactions. Chief Technology Officer Alexandre Baldasseirine Neto says: “The system perfectly matched our core business needs, allowing effortless expansion, installation ease, and rapid deployment.”

Raiffeisen Bank profits with Oracle Analytics and Oracle Exadata.

Vanja Tokic, head of IT delivery controlling at Raiffeisen Bank International, describes how its use of Oracle Exadata to run Oracle Financial Services Analytical Applications (OFSAA) improved performance between 50 percent and 70 percent and centralized operations across 14 different banks.

Raiffeisen Bank International Remains Competitive with OFSAA.

Prioritizing Compliance and Security

Data is valuable. As data volumes increase, so do instances of cybercrime, and so does the need to prioritize security. What’s more, regulators are watching—and so are consumers.

The risks keep growing.

Data exposure remains a serious risk to financial institutions. It can result in reputational damage as well as costly remediation, fines, and litigation. Unfortunately for the industry, malicious hackers go where the money is—and that means financial institutions. In fact, the rate of data breaches or theft in the financial services industry has tripled over the past five years, with the average data breach costing a company US$3.9 million.

More data breaches than ever.

The risk of cyberattack on financial services firms cannot be overstated.

At US$18 million per firm, cyberattacks cost financial services firms 50 percent more than the cross-industry average. Financial services firms also fall victim to cybersecurity attacks 300 times more frequently than businesses in other industries.

Phishing attacks are on the rise. Phishing and social engineering are cyberattacks that manipulate people into giving up confidential information; they are also the most common delivery mechanisms for ransomware, or malicious software that denies access to, or threatens to publish, data unless a ransom is paid. A denial-of-service attack renders a service unusable by overloading its underlying systems.

Prioritize security as you move to the cloud.

A Gartner study estimates that more than half of all enterprises will implement a cloud strategy by 2025. But not all companies are ready or able to move to a public cloud environment. For instance, they may need to maintain data in their own data center for regulatory or latency issues. For these businesses, the traditional public cloud is not the only option.

Oracle Exadata Cloud at Customer provides a unique model that delivers the benefits of Oracle Cloud in your data center behind your own firewall, with built-in security, cloud consumption costs and capabilities, and infrastructure that is maintained by Oracle.

Among the most important benefits of Oracle Cloud is data security. Oracle Cloud operates under a shared responsibility model that builds security into every layer. All cloud solutions come with extensive, continual security measures so that you can focus on extracting value from your data rather than worrying about how to protect it. What’s more, all Oracle Cloud platforms provide the same security assurances and continued protections, so Oracle Exadata Cloud at Customer users realize the same level of security as public Oracle Cloud customers.

Regulators are watching—and so are consumers.

Given the potent mixture of valuable data, high transaction volume, and relentless, increasingly sophisticated hackers, regulators and consumers are on high alert about the vulnerability of sensitive financial information. In response to this “perfect storm,” banks and other financial institutions are taking a broader, more holistic approach to data security in the form of information governance. Financial services providers are expected to strengthen their core risk management governance, controls, practices, and reporting, particularly in the areas of cybersecurity, third-party risk management, and conduct and culture, on a continuous basis.

In a recent report, KPMG identified 10 key regulatory challenges they believe will impact the industry and the solutions financial institutions should consider.

Embed cybersecurity and data privacy compliance into enterprise risk management programs and IT decisions.
Improve risk identification, scenario analysis, business line accountability, issues management, third-party management, and reporting.
Create a framework that prevents misconduct at its root and establish strong controls encompassing continuous governance, oversight, and monitoring.
Create an integrated program that drives collaboration between compliance and the rest of the organization.
Integrate and automate financial crimes activities to facilitate data and reporting requirements and affect cost-containment measures.
Adopt innovations such as enhanced automation and regulatory technology. Establish change governance, quality testing, and capacity and skills-based changes to reduce technology-change risk.
Enhance risk management and conduct programs, improve data integrity and reporting protocols, implement effective misconduct controls, and drive greater accountability in your clients and portfolios.
Deploy enhanced technology, automation, quality checks, and reporting processes at all levels of the organization, including customers, financial activity, employee behavior, and third-party transactions.
Expect fewer capital and liquidity requirements for smaller firms and more-streamlined requirements for larger firms.
Reassess capital and staffing allocations and third-party relationships. Global regulations such as General Data Protection Regulation (GDPR) and The Markets in Financial Instruments Directive (MiFID) II will directly impact areas of global operations, including compliance and tax functions.

Oracle Engineered Systems have security built in.

Given this all-encompassing approach to information governance, intermittent patching of poorly integrated hardware and software is no longer adequate. Oracle Engineered Systems such as Oracle Exadata and Oracle Zero Data Loss Recovery and Appliance, together with Oracle Database, help you minimize security threats and downtime when applying security patches. You can patch the entire Oracle IT stack at one time, rather than patch individual systems, storage, and networking products in typical do-it-yourself environments.

Leading US$200 billion financial services company reduces patching by 95% with Oracle Exadata.

Before implementing Oracle Exadata, IT at this leading financial services company had to perform 1,392 patches per year across more than 150 systems and corresponding operating systems from five different vendors. Not only did all of this patching require resources, but a missed or misapplied patch could lead to downtime or leave security holes that could be exploited by hackers. With the consolidation made possible by Oracle Exadata, only four patches are required per year, performed by Oracle, significantly minimizing security and downtime risk.

GDPR and the future of regulation.

Europe’s recently enacted General Data Protection Regulation (GDPR) represents a broad new approach to customer privacy. GDPR currently applies to all global companies that handle European Union (EU) citizen data, but it represents a global trend. These and similar new laws will have lasting effects on the way global corporations do business. Financial firms are certainly no strangers to data security regulation—think Payment Card Industry Data Security Standard (PCI DSS)—but leveraging big data means collecting and analyzing ever-greater amounts of customer information, increasing risk commensurably.

GDPR compliance with Oracle Engineered Systems.

Running Oracle Database on Oracle Exadata with Oracle Zero Data Loss Recovery and Appliance helps customers meet GDPR compliance requirements as summarized in a report by the Enterprise Strategy Group, an IT analyst, research, validation, and strategy firm.

Monetizing Your Data

Traditional financial services companies have access to volumes of data that fintechs can only dream of. Success depends on reinventing business strategies to take advantage of it.

Your greatest asset is your data.

If the future of banking means ever-more data, the secret to gaining a competitive advantage lies in monetizing it. Fintech startups already understand this, but the fact remains that traditional banking and financial services companies hold two key resources that startups can only look outwith envy: a vast customer base and the rich data stream that supplies it. The key to success will be actually leveraging these resources to gain a deeper connection with consumers and beat the competition, but it requires building an entirely new business strategy on a robust IT infrastructure.

Digital lending draws added value from existing data.

Digital lending with instant loan approval is an early (and fast-growing) example of leveraging available data in new ways. Startups such as LendingClub and OnDeck serve as powerful proofs of concept, while giants like Wells Fargo are replicating the model. According to “The State of Digital Lending” study by the American Bankers Association (ABA): “Banks put themselves at risk by lagging in technology adoption. Customers expect digital loan origination channels and nonbanks are offering it, yet only seven percent of banks can handle loan products digitally from end to end.”

Mobile banking requires fast access to data, and no downtime.

Efficient mobile technology is a requirement in 21st-century banking. This data source is growing rapidly, with PwC estimating that, as of 2017, 46 percent of bank customers use digital channels only (smartphones, tablets, websites, and applications)—an increase from 27 percent in 2012. What’s more, mobile banking customers are highly engaged: according to a 2016 Fiserv survey, mobile banking customers tend to hold more bank products than branch-only customers—a trend that suggests bigger cross-selling opportunities. As a result, mobile banking customers bring an average of 72 percent more revenue than branch-only customers.

If your app is slow and unresponsive because your database is down or stalled, it will literally cost you money and customers.

Caixa Bank Leads Innovation with Big Data Technology.

For data monetization, efficiency is everything.

Gathering and storing customer data is a wasted and costly effort if it can’t be accessed quickly and securely. The goal of many financial services companies is to enhance loan officer productivity, prime sales pipelines, and offer the right banking solutions for your customers. With the right system, you can scale business at speed and keep employees and customers happy while reducing infrastructure total cost of ownership.

Yuanta Securities gets its data in line with Oracle.

Yuanta Securities provides investment banking services throughout Taiwan, operating nearly 200 branches. After merging with another firm, Yuanta Securities found itself operating on two database platforms. The company needed to make sure the two systems functioned with real-time data synchronization to avoid disrupting time-critical trade transactions.

By implementing Oracle Database Appliance and Oracle GoldenGate, Yuanta Securities was able to consolidate data from six databases into a single platform and achieve near-real-time, back-end data synchronization. In doing so, Yuanta Securities cut hardware costs by 70 percent and slashed time spent detecting component failures by 90 percent—all while supporting 40 million monthly trade transactions for clients.

Infrastructure That Makes Business Sense

Customer satisfaction is paramount. Only cloud can offer the agility, speed, and performance that all financial services companies need to serve today’s demanding consumers.

Engineered for the financial services industry.

Oracle Engineered Systems take infrastructure optimization to the next level. They’re architected, integrated, tested, and optimized to work together. What’s more, they’re coengineered with Oracle Database for a level of cloud-ready integration and performance that generic systems cannot match. Consolidating to an engineered system like Oracle Exadata boosts both your top and bottom line.

Ready for cloud wherever you are.

Prepare your organization with cloud-ready IT infrastructure that is optimized for on premises as well as in the cloud: Oracle Engineered Systems.

Engineered systems are designed, fully integrated, and optimized with Oracle Database applications to deliver faster financial reports, access to customer data, and better customer experience and forecasting. Oracle Engineered Systems are designed to prevent data loss and breaches, a financial company’s most valuable asset, and accelerate rapid data recovery across your enterprise. And they provide a seamless path to the cloud when your organization is ready.

Many leading financial services customers around the world have already learned that they can optimize for today while planning for tomorrow, with Oracle Engineered Systems.

Faster access to data means happier customers.

Customers hate wait time. Every minute they are on your website and waiting, customer satisfaction rates decline and the more likely they are to consider abandoning the transaction—or taking their business elsewhere. We know that mobile banking customers bring an average of 72 percent more revenue than branch-only customers. But did you know that data latency impacts your mobile banking experience? An Apteligent report reveals that 48 percent of consumers uninstall or stop using an app due to slow speeds. This means that every second spent waiting on your data to load translates into lost revenue.

100x faster analytics and data access to enhance employee productivity.

Oracle Exadata’s extreme performance greatly improves user response times, cutting batch processing and large query times from hours to minutes, or seconds. Optimized data response times are critical so that users can analyze data in real time, allowing for more-accurate forecasting and better resource planning and budgeting. Users can spend more time doing useful work and less time waiting for the system to respond, improving customer experience.

“By replacing IBM servers with Oracle Exadata Database Machine, we gained the ability to process batches 70 percent faster, create reports 10 times faster, and enhanced user and customer experience. Using real-time backup with Oracle Zero Data Loss Recovery and Appliance also minimized data-loss exposure.” Le Minh Huan, Chief Information Officer, Saigon Commercial Bank. Read the story

A portfolio of products engineered for your needs.

is the highest-performing, most available architecture for Oracle Database. You get extreme performance, rapid time to value, straightforward deployment, and a system that’s ready for the cloud when you are. This means you need faster access to date, faster call center response times, and the ability to deploy new mobile banking apps faster.
connects your database cloud in Oracle Cloud or Oracle Exadata Cloud at Customer, delivered securely on premises behind your firewall. With Oracle Exadata Cloud at Customer, you can combine our powerful database platform with the simplicity, agility, and elasticity of cloud deployment. Consume Oracle Exadata via a flexible subscription model, managed in your data center by a team of Oracle Cloud experts.
dubbed by the Enterprise Strategy Group as the first “fiduciary-class” data recovery appliance, addresses backup and recovery for Oracle Database with a unique architecture that quickly recovers the database and eliminates data-loss exposure. In addition, Oracle Zero Data Loss Recovery and Appliance can protect against cyberthreats, such as ransomware, by recovering data to a point in time just before the malware attack.
is the lowest-cost entry into Oracle Engineered Systems, ensuring substantial savings in licensing without compromising performance. Oracle Database Appliance has been specifically designed to bring enterprise-level speed, security, and scalability to small to midsize businesses. It’s a completely integrated package of software, compute, networking, and storage that’s been optimized and engineered to offer performance and scale for your Oracle Databases and applications. It reduces complexity, saves time, and gets you up and running faster.
is a turnkey engineered system built for rapid deployment of private cloud. It runs both Oracle and non-Oracle workloads on a mix of operating systems: Oracle Linux, Oracle Solaris, and Microsoft Windows. Oracle Private Cloud Appliance is unique in the industry because it is a preconfigured, prebuilt engineered system that combines compute, network, and internal storage resources in a software-defined fabric. This enables the most agile and efficient application deployments. It is built on the same underlying technologies as Oracle Public Cloud, providing seamless migration of data between private and public clouds.

Banco de Chile.

Banco de Chile is the country’s second-largest banking group, dedicated to establishing long-term relationships with its clients. Oracle is helping Banco de Chile optimize customer experiences.

Banco de Chile improves CX with Oracle Engineered Systems.

A pivotal time for financial services.

The financial services industry is evolving fast. Traditional banks and service providers need to leverage the value of the assets they have to compete with digital native, disruptive newcomers, or risk becoming obsolete.

All Oracle Engineered Systems consumption models are cloud-ready when you are. Choose traditional on-premises deployment, private cloud, or public cloud behind your firewall—and get the same set of world-class, fully compatible, cloud-ready capabilities.

Customer Stories

Hear from Financial Services customers who are experiencing the benefits of Oracle Engineered Systems for themselves.

Europe, Middle East, and Africa

CaixaBank Leads Innovation with Big Data Technology

Oracle is working with CaixaBank, the leading retail bank in Spain, to support its business model, providing a tailor-made value proposition for each banking segment.

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Raiffeisen Bank International Experienced a 50%–70% Performance Increase

Raiffeisen runs Oracle Database and Oracle Financial Services Analytical Applications on Oracle Exadata. This optimized stack has helped Raiffeisen Bank with management reporting and measuring the profitability of its customers in a fraction of the time.

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HDFC Bank Serves 35 million Customers with Oracle Technology

HDFC Bank executes 30 million transactions effortlessly for 35 million customers using Oracle SuperCluster, Oracle FLEXCUBE, and Oracle Banking Platform. Migrating from DIY to Oracle Engineered Systems provided additional reliability, scale, speed, and availability that wasn’t possible before Oracle Exadata.

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Brinks Achieves Cost Savings with Oracle Exadata

Learn how Oracle Exadata helped Brinks achieve cost savings, as well as stability, speed of recovery, and great availability and access for its customers.

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Asia Pacific and Japan

Huatai Securities Processes New Accounts 74X Faster

With Oracle Exadata, securities broker Huatai Securities generates survey reports 34 times faster, allowing Huatai to gain deeper insight into its customers and provide them with an improved experience.

Read the customer story

Latin America

SPC Credit Union Performs Better with Oracle Engineered Systems

Learn how Oracle Exadata and Oracle Exalogic helped SPC Brasil achieve better control of its environment and enhanced the credibility and reliability of its data to offer superior consultancy to its clients.

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Banco de Chile Improves Experience with Oracle Exalogic

Leading Chilean bank adopts Oracle Engineered Systems to keep its systems available for its customers 24/7.

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Oracle Exadata and Oracle Big Data Appliance Enable Santander Rio a 360-degree Customer View

Santander Rio broke down data silos with an Oracle Exadata and big data appliance consolidation. This enabled better big data analysis and deeper customer insights.

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Banco Monex Doubles Database Performance with Oracle Exadata

Banco Monex adopts Oracle Exadata as a platform for databases to protect customer data and grow its business.

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