IN MEMORY COMPUTING IN FINANCIAL SERVICESROB BARR

WHAT DO WE MEAN BY “FINANCIAL SERVICES”?

FINANCIAL SERVICES

Accounting firmsInsurance companiesStock brokeragesInvestment FundsCredit Card CompaniesBanks

RETAIL OR CONSUMER BANKING

Savings AccountsCurrent AccountsMortgagesLoans

RETAIL OR CONSUMER BANKING

Credit cardsDebit cardsOnline BankingMobile Banking

IB FRONT OFFICE: INVESTMENT SERVICE

Raise money through IPOs

Mergers and Acquisitions

IB FRONT OFFICE: SALES AND TRADES:

EquitiesFixed IncomeCommoditiesMoney MarketDerivatives• swaps• futures• options

IB FRONT OFFICE: ANALYSIS

Review of companies

Advice on future earnings

IB: MIDDLE OFFICE

Risk Management

Regulatory Reporting

Corporate Strategy

Compliance

IB MIDDLE OFFICE: RISK

Market Risk• Equity Risk• Interest Rate Risk• Currency Risk• Commodity Risk

Credit Risk

LOTS OF CALCULATIONS

Greeks- Vega, Theta, Rho, Gamma,

Delta

VaR and Stressed VaR

Monte Carlo Simulations

Black Scholes

INVESTMENT BANK : BACK OFFICE

Operations and Technology

Accounting

Trade Admin

THE PAST

THE PAST

Silos of Data

Duplication of data

Disparate, bespoke systems

Long, waterfall style projects

THE PRESENT

MARKET PRESSURES: CHALLENGER BANKS

Fidor Bank, Atom Bank, Metro Bank, Starling

Digital First, Mobile First

No legacy technology

No physical presence

MARKET PRESSURES : FINTECH STARTUPS

Processing of Payments- Paypal- Apple Pay- Samsung Pay

Investing and Financing - Kickstarter, IndieGogo

REGULATORY PRESSURES: UK REGULATORS

Prudential Regulation Authority

Bank of England

Financial Conduct Authority

REGULATORY PRESSURES: US REGULATORS

Securities and Exchange Commission

Federal Reserve

REGULATORY PRESSURES : THE WORLD

Monetary Authority of Singapore

European Securities and Market Authority

Hellenic Capital Market Commission

Fifty+ other countries

REGULATIONS

Sarbanes – Oxley

Markets in Financial Instruments Directive - MiFIDDodd Frank

Protection of Client Assets and Money CASS

BASEL III

CFDC

Fundamental Review of Trading Book - FRTB

EMIR

Volker

FFIEC

DSS

PCI

GOALS OF REGULATION

Market Confidence

Financial Stability

Consumer Protection

Reduction of Financial Crime

TECH IMPACT

Large scale regulatory reporting

Massive risk and analytics processingConsolidation of platforms, simplification

Faster deployment cycles

TECH IMPACT

Standard n-tier architectures

Big Data

In Memory Data Grids

Physical or virtualised servers

THE FUTURE

CLOUD COMPUTING

Infrastructure as a Service

Platform as a Service

Software as a Service

CLOUD CHALLENGES

Mismatched Regulations

Security implications

Proprietary code

Performance, Performance!

DATA SCIENCE AND MACHINE LEARNING

Big data and cheap compute

Fraud detection

Stock prediction

Market trend analysis

FUTURE TECH

Block Chain

Non volatile memory

Artificial Intelligence

SUMMARY

ROUND UP

Financial Services will never get simpler.

The amount of data being processed will never get smaller.

The speed at which data is gathered, analysed and reported will never decrease.

BIG Data. FAST. In Memory.