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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.
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