Banking Technology: Three key areas of IT growth you need to be aware of

June 26, 2017
Banking Technology: Three key areas of IT growth you need to be aware of

Today, we want to discuss three key areas of IT growth in banking technology which we’re particularly interested in. The nature of the IT environment we work in means that organisations rarely have a straight path to follow, and choosing the best route to get to where you need to be can be tricky.

We’re spending the week at Money 20:20 in Copenhagen. In preparation for the show, we spent time with our leading experts in networking, security, cloud, and mobile workspaces to discuss how the banking industry can develop in three key areas to achieve a modern, flexible, secure and agile infrastructure. Jeremy van Doorn, Enrico Boverino and Elan Yanovsky are here to walk you through our three big focuses for this week.

We’re in Copenhagen all week – to arrange a meeting with one of our team, please fill out this form and we’ll be in touch. We’re looking forward to talking to you: Arrange a meeting with VMware

What we’ll cover on this post:

1: New flexible and secure platforms for new Digital banks

2: Customer experience in branches

3: Integrating new FinTech programs within the bank’s IT environment

 

Thanks for reading. If you have any questions, please feel free to get in touch with Jeremy, Enrico or Elan

1: New flexible and secure platforms for new digital banks

We all know how important it is for banks to become more digital. With new audiences bringing new banking needs, raised levels of digital skills, and increased trust in digital banking, banks have to provide cutting edge digital access whilst still maintaining the old infrastructure known and trusted by existing users.

A great example of these new needs and raised levels of trust can be seen in a great example given by VMware’s Richard Bennett (https://twitter.com/UCCBennett) – How many of us have mobile banking set up on our smartphones? The vast majority will of course have this. However, petition this audience to see how many people would be happy to set up a mortgage for their house via mobile banking? In a more traditional banking audience, the number of people who would make such a major purchase drops to almost zero. Yet, for our emerging audiences, this is a common practice.

While traditional customers would expect a meeting with a bank manager in a physical office, our growing audience of modern users demand all banking processes to be omnichannel, through their smartphone, with instant access, instant response, a smooth and enjoyable user experience, and no required human interaction in the process. For the banks IT teams, this offer needs to be delivered in a way that’s scalable, to deal with spikes in demand, adaptable to new systems and devices as they come to market, and have absolutely zero downtime during system changes and updates.

This change of focus is putting major pressure on banks; how do you provide an agile, scalable and secure solution that can be delivered to any device anywhere?

The banking industry has seen strong growth in digitizing services and in creating an omnichannel experience. But, the more digital your services are, the bigger your exposure to cyber threats.  The need for a secured service has never been clearer.

At VMware, we offer a new type of platform to host your digital services. The Software Defined Data Center (SDDC) is a fully software controlled  data center solution designed for today’s challenges. The SDDC accommodates both the need to handle changes in demand for your services and the need for intrinsic security. With it’s security solution – the NSX – micro- segmenting your data center to encapsulate different application and isolate them from potential external risks is made easy. It also enables simple insertion of security handles – like firewalls, intrusion detectors and others – in a dynamic and simple way.

To provide a digital experience, you don’t need to risk the security of your bank. Take a look at our Network Virtualization for Dummies guide for more information on NSX, or our Micro-Segmentation for Dummies guide for a step-by-step guide to how we can help you provide exceptional customer experience without compromising security.

2: Customer experience in branches

Whilst a mobile user experience is key for a growing portion of our users, in-branch technology is another area that’s seeing strong growth. The opportunities to provide an improved branch experience for customers by lowering waiting times, providing instant contact and resolutions, whilst lowering staff and other related costs, are huge.

Essentially, banks are trying to change the user experience from one which is anchored to a desk and a teller, to a less formal, more fluid and mobile experience. This experience will be provided over a wide range of new devices like tablets, large touch screens and others. Those new devices will use new applications and utilize legacy IT systems. While the new applications will be developed for the new devices, the utilization of legacy applications designed to run on a desktops on these devices is a challenge. Furthermore, once deployed on mobile devices, we need to ensure the mobile connection will not increase the security risk to the bank.

At VMware, we provide a suite of tools to allow you to provide this in-branch experience to customers, whilst maintaining the security of the application, data-center, and connected organizational IT systems. VMware Workspace ONE and NSX with Micro-Segmentation provide a combination of mobility and SDDC solutions to provide for these opportunities and to face the new threats.

VMware is empowering branch mobilisation to ensure that the user experience a customer receives in-branch resembles the experience they are accustomed to when using the mobile apps outside of the branch.

The first issue we’re solving is how to run existing applications (normally used on in-branch desktop systems), on any number and type of modern mobile devices. Doing this whilst maintaining application security requires a special piece of software, and that’s where Workspace ONE comes in. Workspace ONE is a simple way to enable users to access in-branch banking apps on laptops, webtops, tablets, and mobiles, and for IT teams to manage an organization’s fleet of devices across multiple branches. This centralized platform can control any number of devices allows IT teams to ensure all apps and devices are patched and up-to-date, mitigating key security risks commonly seen in large organisations.

Secondly, NSX with Micro-Segmentation provides the data-center security that you need for such a complex mobile app to legacy system set up, protecting the perimeter of your software-defined data center, as well as east-west traffic between apps within your SDDC.  With these three measures in place, would-be hackers can’t use the branch environment to penetrate banking data centers to access customer and organisational data.

3: How to pilot and integrate new FinTech programs in a flexible and secure way within the bank’s IT environment.

As we all know, there’s a key challenge to face in the FinTech industry – how do you integrate modern and cutting-edge FinTech solutions in a banking environment that’s difficult to change and limited by security and regulatory rules. For example, you may have developed a groundbreaking solution for a digital wallet, but in reality, can this be integrated with the treasury or general ledger of the bank. The ability to integrate is key, and ensuring the new solutions comply with bank procedures, regulations, security processes and other central policies are a challenge that many FinTech providers only face when it comes to the sales process, even thought it’s an area that can be addressed in the development process. Bolting on solutions to these alignment problems can create back doors for security threats, and creating them can break compliancy and regulatory rules.

Utilising VMware’s SDDC platform will be the fastest, easiest and most secure way to mitigate these issues, allowing you to integrate new FinTech solutions in legacy based environments with no security concerns and the flexibility needed to provide the right software where it’s wanted. Micro-segmentation provides the security needed to protect both the FinTech solution and the banking IT systems.

Outside of the security and alignment discussion, FinTech is an industry where innovation is key. Yet innovation is dependent on exploring new areas that may fail, so failing fast and learning quickly is essential. Our SDDC approach provides the system to help you to go through this process quickly and easily. With a software-defined data center and an enterprise hybrid-cloud, your dev team have the space to spin up new projects, make quick changes, and expand projects without boundaries, allowing them to focus on the end goal rather than the limitations of a conventional development environment.

VMware can be the bridge between legacy IT systems within the banking industry and new solutions offered by the FinTech industry. We can provide the environment to develop new approaches, trial new systems, and make changes necessary in real time, all whilst staying compliant and secure.


 
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