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The Promise of Blockchain for Enterprises in Financial Services
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Matthew BaldwinDirectorOracle Cloud Innovation
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Program Agenda
Enterprise Blockchain Landscape
Financial Service Initiatives
Capabilities and Advantages of Oracle Blockchain Platform
Summary and Next Steps
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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 4Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Why Blockchain for the Enterprise?
Trusted TransactionsWithout Intermediaries
Reduced Costs
Faster Processes
Real-Time Transaction Visibility=
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 5
Multiple Use Cases Across Industries for Blockchain
• Increase supply chain transparency
• Reduction of counterfeit goods
• Warranty management
Retail & e-Commerce
• Clearing and settlement
• Domestic and cross-border payments
• Loan origination and post-funding automation
• Fraud prevention
Finance
• Supply chain finance• Track and trace
ownership transfer• Compliance
monitoring
Logistics
• Clinical trial management
• Privacy and sharing of patient health records
Healthcare
• Asset management• Certification of
renewable energy and emission allowances
• Metering and billing
Energy
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Program Agenda
Enterprise Blockchain Landscape
Financial Service Initiatives
Capabilities and Advantages of Oracle Blockchain Platform
Summary and Next Steps
1
2
3
4
6
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
• Payments– Cross-border real-time funds transfer among
subsidiary entities
– Seamless B2B payment handling for corporates allowing better recon/transparency/speed between invoice and payments
• Consumer Banking– Cross-border loyalty program, multi-brand loyalty
– Loyalty balance reconciliation across vendors, merchants, etc.
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• Trade Finance & Business Banking– Invoice factoring data collection and correlation
– Letter of guarantee and other documentary processes
– Buyer’s Credit for cross-border trade
– Supplier financing linked with shipping information
• Other– Merchant acquisition transaction reconciliation
– Loan securitization (e.g., mortgages) & value tracking
– Intercompany accounting & reconciliation
Key Financial Services Customer Use Cases
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Payments: Cross Border Funds Transfer for Subsidiaries
• A large bank with multiple regional subsidiaries
• Current cross-border transfers between the subsidiaries use SWIFT services, which
– Are not real-time and require too many manual interventions
– Charge fees and other expenses
• Blockchain benefits
– Smart contracts enable automated transfers based on rules
– Real-time handling of transfers
– Integrated audit trail of transfer requests and confirmations, available to clients through mobile and Internet banking interfaces
8
Copyright © 2018 (ICSFS) ICS FINANCIAL SYSTEMS LTD; All rights reserved. No Part of this document may be reproduced or transmitted in any form or by any means without prior permission in writing from I.C.S.F.S (ICS FINANCIAL SYSTEMS LTD)
Cross-Border Payments using Oracle Blockchain Use Case
Copyright © 2018 (ICSFS) ICS FINANCIAL SYSTEMS LTD; All rights reserved. No Part of this document may be reproduced or transmitted in any form or by any means without prior permission in writing from I.C.S.F.S (ICS FINANCIAL SYSTEMS LTD)
Cross-Border Payments Using Oracle Blockchain
▪ Enhanced Customer Experience▪ Real-time vs. same day use of funds▪ End-to-End payments tracking▪ Remittance information unaltered / Undeleted▪ No single point of failure.▪ Data Privacy (no intermediaries) ▪ Cost Reduction (no intermediaries) ▪ Tamper-proof security
Business Needs:
Copyright © 2018 (ICSFS) ICS FINANCIAL SYSTEMS LTD; All rights reserved. No Part of this document may be reproduced or transmitted in any form or by any means without prior permission in writing from I.C.S.F.S (ICS FINANCIAL SYSTEMS LTD)
Cross-Border Payments Using Oracle Blockchain
A middleware that provides seamless integration between:▪ Oracle Blockchain Service running on trusted shared
fabric of common information▪ Oracle REST APIs▪ ICS BANKS® Core Banking & other banks▪ ICS BANKS® Digital banking platform▪ Sanctions compliance systems & AML
ICS BANKS Blockchain Adapter
Copyright © 2018 (ICSFS) ICS FINANCIAL SYSTEMS LTD; All rights reserved. No Part of this document may be reproduced or transmitted in any form or by any means without prior permission in writing from I.C.S.F.S (ICS FINANCIAL SYSTEMS LTD)
ICSFS Blockchain Solution
Oracle Blockchain Cloud ServicesAML
ICS BANKS Digital Banking
Payment AgentATM Internet BankingKiosk Mobile/ Tablet Banking SMS Banking Wearable Banking
ICS BANKSUniversal Core Banking
REST APIs for Integrations
AdministrationDynamic Configuration,
Monitoring and Troubleshooting
Blockchain Nodes & Containers
ICS BANKS Blockchain Adapter
PaaS
SaaS
REST
gRPC
On Premises
REST
gRPC
Copyright © 2018 (ICSFS) ICS FINANCIAL SYSTEMS LTD; All rights reserved. No Part of this document may be reproduced or transmitted in any form or by any means without prior permission in writing from I.C.S.F.S (ICS FINANCIAL SYSTEMS LTD)
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Deploying Cross-Border Payments Using Oracle Blockchain
eChannel's
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BANK 2 BANK 3
High LevelArchitecture
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Payments: Seamless, Near Real-time B2B Payments from ERP
• Replace Batch File-based Integration with Blockchain
– Real-time
– Auditability & Tracing
– Non-repudiation
• Execute payment orders and report status in real-time
– Intra-day settlement and liquidity for corporate customers
• Across multiple countries
– Better customer experience for multi-nationals
14
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 15
Business/Trade: Bank Guarantee on Blockchain
BanksVendors
• Current Bank Guarantee process is paper based and manual
• Beneficiary is dependent on the Vendor for interactions with the Banks– Lack of transparency between all parties leads to discrepancies – Potential tampering requires extra verification– Lack of tracking complicates amending or invoking
• Significant manual effort, cost, and delays
Beneficiary
Blockchain to streamline the process
• Trusted network for authorized transactions
• Direct interactions
• Verification of the digital BG
• Irrefutable BG records
• Real-time status visibility
• Reduced manual effort
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Business/Trade: Buyer’s Credit for Cross-Border Trade
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Blockchain Benefits• Faster turnaround and funds availability
– Automatic loan creation– Automatic liquidation of bill under LC– Automatic liquidation of Loan Contract
• Cost savings– SWIFT msg reduction– Less manual effort
• Single source of truth – Greater visibility– Avoids human errors by automating loan
creation, liquidation, and bill liquidation
Current Challenges• Multiple versions of truth, discrepancies requiring research and reconciliation• Reconciliation effort on Nostro – Vostro accounts• Manual operations in Loan Creation, Bill Liquidation, etc. with possibility of human errors• Processes are long, redundant and expensive• Potential delays in obtaining funds
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Business/Trade: ERP-Integrated Trade Finance Blockchain
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Banks, buyers, sellers, carriers, insurance providers and government agencies can process Trade Finance requests and operate financial instruments, track shipments, trigger payments etc. on permitted private channels.
Benefits✓ Reduce the time and costs✓ Eliminate cumbersome
offline reconciliation✓ Reduce fraud risks (>15B/yr
in documentary fraud)✓ Eliminate data tampering
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 18
Abstract:
• A vendor that can receive money in advance from the Bank by sharing his accounts receivables (issued invoice).
• At the same time, the solution gives visibility by tracking the products, which means less risk to the Bank.
Benefits
• Liquidity for the vendor
• Risk Management for the Banks
Business/Trade: Invoice Factoring
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 19
Consumer: Global Loyalty Network (GLN)
Enhance Customer Experience• Can use your country points in other countries.• Typical use cases – payments, offline/online
shopping, remittance• No complex transfers that take weeks or months to
complete
Increase Operational Excellence• All participating companies simultaneously store
identical transaction data -> enables accurate settlement without additional reconciliations
Create Business Value• Good way to consume debt• New business model based on exchange of digital
currencies between global financial institutions• Your customers → My customers→ Our customers
Bank-anchored global integrated platform that offers cross-border use of loyalty points and benefits around the world to card users
BENEFITS
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 20
Consumer: Mileage to Opportunity Exchange Platform
Enhance Customer Experiences
Create Business Value
Increase Operational Excellence
Using Blockchain, all participants simultaneously manage identical transaction data for mileage status, mileage history per customer without additional reconciliation.
Can swap your transportation mileage for commercial loyalty points.
• For transportation company → Debt to revenue
• For operating company, new business model based on exchange of different loyalty programs
Providing global integrated mileage platform that converts insufficient transportation mileage into new opportunities.
Mileage
Points
ICO tokenTransportation
Companies
RetailCompanies
Integrated Mileage Blockchain Platform
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Blockchain Cloud Service
Loan Securitization Using Blockchain
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SolutionEnd to End automation via a blockchain and smart contracts • Provides the same view of data to both parties• Uses smart contracts to verify and alert on the
changes in data to act• Automates securitization reconciliation process • Continuous cash flow projections and reporting
Benefits• Provides strong audit trail • Improves efficiency and reduces processing cost• Reduces errors and manual processing• Can maintain near-real time valuations based on payments data• Enables real-time integration with core systems and reporting
Oracle Confidential – Under NDA
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Program Agenda
Enterprise Blockchain Landscape
Financial Service Initiatives
Capabilities and Advantages of Oracle Blockchain Platform
Summary and Next Steps
1
2
3
4
27
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
• Fast to provision
• Easy to configure changes
• Quick to onboard new members
• Fast to develop & test smart contracts and integrate applications
• Performance and scalability
• HA and operational resilience
• Security and confidentiality
• Plug-n-Play enterprise integration
• Supportability and management
• Policy-based governance
Enterprise Demands from Blockchain Platforms
Rapid Experimentation Production-Ready
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Delivering Enterprise Grade Capabilities
Performance at ScaleParallel executionElastic scale-outMuch faster world-state DBAuto-tuning and dynamic scaling
Operational ResilienceHigh availability VMsAutonomous recovery agentsContinuous backup to object storeMulti-AD and multi-region DR
Security & ConfidentialityIntegrated identity managementIdentity federationData encryption at-restCertificate revocation managementFine-grained access control mechanism
Supportability & OperationsDynamic configurationMonitoring dashboardsZero-downtime managed patching Multi-datacenter deploymentsGovernance for consortia
Development & IntegrationSQL-based rich queriesSynchronous & async REST APIsJava, GO, and Node.js SDKsEnterprise App AdaptersRich queries for history DBAnalytics integration Data modeler, IDE, Java chaincodeDev mode testing with cloud Peer
Italics – planned enhancements
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Pre-Assembled
Enterprise-Grade
Plug and Play
Open
Oracle Blockchain PlatformHardened for enterprise applications
Oracle Blockchain Cloud Platform
Oracle Cloud Infrastructure and PaaS Services
Container Services
Identity Management
EventsManagement Services
Data Services
Governance*
Consensus
Smart Contracts Confidentiality
REST API SDKs for Go, Java, and Node.js OIC Adapters
Distributed Ledger
Open Source Hyperledger Fabric
Oracle-managed PaaS
On-Premises AppsSCMERP HCM CX
Oracle SaaS
CRM3rd Party SaaS
Custom Cloud Apps
Hyperledger Fabric Peers in customer data centers
or 3rd party clouds
Pre-Assembled
Open
Enterprise-Grade
Plug-n-Play Integrations
*coming soon
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Ease of Integration and Systems of Record Connectivity
NEW SAAS BLOCKCHAIN APPLICATIONS
• Supply chain track & trace use cases and more
• Oracle GBU applications in selected industries
ORACLE INTEGRATION CLOUD
• Adapters for Oracle & 3rd party applications in cloud and on-prem: ERP, SCM, CX, HCM…
• Technology adapters (MFT, JMS…)
• Turn application events into REST calls to run blockchain transactions
REST API-DRIVEN INTEGRATION
• Invoke txn’s in sync & async mode
• Get txn status
• Register event callback URL
• Query ledger data
• Provisioning API
• Operations/Configuration APIs
JAVA, GO, AND NODE.JS CLIENT SDKS
• Invoke txn’s asynchronously
• Get txn status
• Query ledger data
• Subscribe to events
• Add channels/peers
• Enroll new members
Apps Apps
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Comprehensive Blockchain Platform
33
Membership Service
Membership Service
Applications
Validating Nodes/ Peers
Distributed Ledger (Single Version of Truth)
Smart Contracts (aka Chaincode)
Ordering Service
Ordering Service
REST Proxy and Operations APIs
Operations
Admin/Operations Console
Integrated backplane of supporting services
Oracle value-add
Rich integration tools for SORs & new apps
App
App
SDK
REST proxyREST
Flexible, global, interoperable deployments
P P
P
Pre-assembled Dependencies
SQL-based rich queries over K-V ledger
SQL
Automated DevOps in Oracle-managed PaaS
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Program Agenda
Enterprise Blockchain Landscape
Financial Service Initiatives
Capabilities and Advantages of Oracle Blockchain Platform
Summary and Next Steps
1
2
3
4
34
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Learn More
http://oracle.com/blockchainhttp://cloud.oracle.com/blockchain
http://developer.oracle.com/blockchainThank You!