Digital Banking is 24×7 Trusted Banking

By Jeff Hong, Global Industry Marketing Lead, IBM Systems

January 24, 2019

With cyberterrorism, Fintech startups, and changing consumer profiles, a bank’s future depends on providing more than just core banking services. A bank needs to anticipate and meet its customers’ expectations that are increasingly personal and influenced by social media. To do so, a bank must make smart technology choices that deliver a satisfying omnichannel experience for clients 24×7 – whether a client is logged in or not. For example, a bank must ensure that the client’s data is always protected. In the event that the client’s data becomes compromised, the bank must alert the client immediately and implement corrective actions. Digital banking is built on trust; a bank must do all it can do to maintain that trust.

Modern infrastructure is critical for digital banking

Even as banks adopt Artificial Intelligence (AI) and customer service bots, they are looking into the future to blockchain and new payment platform technologies. Banks are investing in open infrastructure technologies for greater operating efficiency and customer-centricity. One of the most important technology investments is in datacenter modernization. Many banks begin their digital transformation by implementing a hybrid cloud infrastructure to gain operational agility and to lower fixed costs in their data center.

Banks often start by migrating their mobile applications that support a variety of retail and investment services like basic checking and stock trading. Moving the front-end of mobile applications from an in-house VM environment to a VM environment on a public cloud is a relatively straightforward migration. Less straightforward is moving the back-end and more complex core banking systems. For these, some are being or will be redesigned using containers and micro-services technologies including Docker and Kubernetes. Sensitive applications such as financial risk applications that run on in-house computing grids will likely remain in-house, but are being extended to support bursting to public cloud for additional capacity.

Banks have achieved greater agility and cost savings by adopting a hybrid cloud platform. One Asian bank reaped cost savings of 75% by eliminating hundreds of servers in their datacenters that were used for disaster recovery or reserved for peak analytical workloads. IBM Spectrum Symphony enabled the firm to create a flexible hybrid cloud, using public cloud resources only when needed. The system can anticipate when to burst to Amazon Web Services (AWS) for additional compute capacity in order to avoid delays in time-to-completion of critical risk and pricing analytics. In fact, many firms have more than one public cloud and one private cloud; many have on average five clouds. For these hybrid multi-cloud customers, open technologies and APIs that work on multiple platforms is a critical requirement.

Beyond cloud

A successful digital banking experience relies on petabytes of unstructured and structured data. New digital services for both retail and investment banking depend on the 24×7 availability of high quality data – and lots of it – and on the ability to do more with this data. However, data requirements will vary by use case. As a result, banks can’t rely on a single storage solution for all their needs. Nor can they continue to adopt point-solutions for each use case. Banks need a flexible data management approach that leverages multiple storage formats, media, and environments – with the ability to integrate and manage across data stores. The right hybrid multi-cloud storage solutions will allow the bank to:

  • Modernize on-premises storage
  • Leverage storage on both public and private clouds
  • Support a mix of formats (object, file, and block)
  • Integrate and migrate data stores, to support users and applications
  • Strongly encrypt data when at rest and in motion
  • Support automated, policy-based data access, distribution, backup/archives, et al

Predicting Success

Going digital unfortunately increases a bank’s exposure to cybercriminals. From data breaches to electronic fraud, an average financial organization is 65% more likely to be hacked than a non-financial enterprise. With an average incident cost of $206 per capita cost of a data breach[1] and potential penalties imposed by regulators for the data loss, financial firms are rightly reviewing and updating their data policies and technologies. Software such as IBM Spectrum Protect Plus protects and quickly recovers data in physical, virtual, software-defined or multi-cloud environments including IBM Cloud and AWS. RESTful API support ensures seamless data access. Regulations such as GDPR amplify the need for consistent data policies across a hybrid multi-cloud system.

AI, whether deployed in customer engagement or in risk/fraud management, depends on scale-out deep learning (DL) systems.  A distributed, software-defined infrastructure – compute and storage – allows clients’ choice of machine learning (ML) framework, big data platform, storage, and server.  One North American firm analyzes thousands of securitization applications each day, flagging those with incomplete or potentially fraudulent data using IBM Spectrum Computing, IBM Spectrum Storage software, and open source Apache frameworks on x86 systems.

As the result of their work with 100’s of customers deploying on-premise and hybrid cloud AI solutions, IBM has developed the IBM AI Infrastructure Reference Architecture. By simplifying the complexity of AI initiatives, speeding the time to model accuracy and providing efficient high-performance, enterprise-grade infrastructure, this reference architecture delivers cost-effective, accurate and timely AI value. It combines accelerated servers and storage with software including advanced workload and resource management, essential open source frameworks and data management tools, all accessible through an easy to use interface.

As end-user clients expect more personalized experience with the 24×7 peace-of-mind to match, banks require technology solutions that deliver greater agility, deeper insights, and efficient management of workloads and data on a hybrid multi-cloud environment. The always-on nature of digital banking, coupled with increasing cyber-threats, regulations, and changing consumer tastes mean that infrastructure and the applications running on it must continually adapt and innovate. At IBM, we believe that our leadership in hybrid multi-cloud infrastructure solutions and our investments in open source and reference architectures like the IBM AI Infrastructure Reference Architecture offer differentiating values for our financial services clients by simplifying and enabling their digital transformation, innovation, and agility across all channels.


[1] Cost of a Data Break Study: https://www.ibm.com/security/data-breach

Return to Solution Channel Homepage

IBM Resources

Follow @IBMSystems

IBM Systems on Facebook

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Insights from Optimized Codes on Cineca’s Marconi

February 15, 2019

What can you do with 381,392 CPU cores? For Cineca, it means enabling computational scientists to expand a large part of the world’s body of knowledge from the nanoscale to the astronomic, from calculating quantum effe Read more…

By Ken Strandberg

What Will IBM’s AI Debater Learn from Its Loss?

February 14, 2019

The utility of IBM’s latest man-versus-machine gambit is debatable. At the very least its Project Debater got us thinking about the potential uses of artificial intelligence as a way of helping humans sift through al Read more…

By George Leopold

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst of bankruptcy proceedings. According to Dutch news site Drimb Read more…

By Tiffany Trader

HPE Extreme Performance Solutions

HPE Systems With Intel Omni-Path: Architected for Value and Accessible High-Performance Computing

Today’s high-performance computing (HPC) and artificial intelligence (AI) users value high performing clusters. And the higher the performance that their system can deliver, the better. Read more…

IBM Accelerated Insights

Medical Research Powered by Data

“We’re all the same, but we’re unique as well. In that uniqueness lies all of the answers….”

  • Mark Tykocinski, MD, Provost, Executive Vice President for Academic Affairs, Thomas Jefferson University

Getting the answers to what causes some people to develop diseases and not others is driving the groundbreaking medical research being conducted by the Computational Medicine Center at Thomas Jefferson University in Philadelphia. Read more…

South African Weather Service Doubles Compute and Triples Storage Capacity of Cray System

February 13, 2019

South Africa has made headlines in recent years for its commitment to HPC leadership in Africa – and now, Cray has announced another major South African HPC expansion. Cray has been awarded contracts with Eclipse Holdings Ltd. to upgrade the supercomputing system operated by the South African Weather Service (SAWS). Read more…

By Oliver Peckham

Insights from Optimized Codes on Cineca’s Marconi

February 15, 2019

What can you do with 381,392 CPU cores? For Cineca, it means enabling computational scientists to expand a large part of the world’s body of knowledge from th Read more…

By Ken Strandberg

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst o Read more…

By Tiffany Trader

UC Berkeley Paper Heralds Rise of Serverless Computing in the Cloud – Do You Agree?

February 13, 2019

Almost exactly ten years to the day from publishing of their widely-read, seminal paper on cloud computing, UC Berkeley researchers have issued another ambitious examination of cloud computing - Cloud Programming Simplified: A Berkeley View on Serverless Computing. The new work heralds the rise of ‘serverless computing’ as the next dominant phase of cloud computing. Read more…

By John Russell

Iowa ‘Grows Its Own’ to Fill the HPC Workforce Pipeline

February 13, 2019

The global workforce that supports advanced computing, scientific software and high-speed research networks is relatively small when you stop to consider the magnitude of the transformative discoveries it empowers. Technical conferences provide a forum where specialists convene to learn about the latest innovations and schedule face-time with colleagues from other institutions. Read more…

By Elizabeth Leake, STEM-Trek

Trump Signs Executive Order Launching U.S. AI Initiative

February 11, 2019

U.S. President Donald Trump issued an Executive Order (EO) today launching a U.S Artificial Intelligence Initiative. The new initiative - Maintaining American L Read more…

By John Russell

Celebrating Women in Science: Meet Four Women Leading the Way in HPC

February 11, 2019

One only needs to look around at virtually any CS/tech conference to realize that women are underrepresented, and that holds true of HPC. SC hosts over 13,000 H Read more…

By AJ Lauer

IBM Bets $2B Seeking 1000X AI Hardware Performance Boost

February 7, 2019

For now, AI systems are mostly machine learning-based and “narrow” – powerful as they are by today's standards, they're limited to performing a few, narro Read more…

By Doug Black

Assessing Government Shutdown’s Impact on HPC

February 6, 2019

After a 35-day federal government shutdown, the longest in U.S. history, government agencies are taking stock of the damage -- and girding for a potential secon Read more…

By Tiffany Trader

Quantum Computing Will Never Work

November 27, 2018

Amid the gush of money and enthusiastic predictions being thrown at quantum computing comes a proposed cold shower in the form of an essay by physicist Mikhail Read more…

By John Russell

Cray Unveils Shasta, Lands NERSC-9 Contract

October 30, 2018

Cray revealed today the details of its next-gen supercomputing architecture, Shasta, selected to be the next flagship system at NERSC. We've known of the code-name "Shasta" since the Argonne slice of the CORAL project was announced in 2015 and although the details of that plan have changed considerably, Cray didn't slow down its timeline for Shasta. Read more…

By Tiffany Trader

The Case Against ‘The Case Against Quantum Computing’

January 9, 2019

It’s not easy to be a physicist. Richard Feynman (basically the Jimi Hendrix of physicists) once said: “The first principle is that you must not fool yourse Read more…

By Ben Criger

AMD Sets Up for Epyc Epoch

November 16, 2018

It’s been a good two weeks, AMD’s Gary Silcott and Andy Parma told me on the last day of SC18 in Dallas at the restaurant where we met to discuss their show news and recent successes. Heck, it’s been a good year. Read more…

By Tiffany Trader

Intel Reportedly in $6B Bid for Mellanox

January 30, 2019

The latest rumors and reports around an acquisition of Mellanox focus on Intel, which has reportedly offered a $6 billion bid for the high performance interconn Read more…

By Doug Black

US Leads Supercomputing with #1, #2 Systems & Petascale Arm

November 12, 2018

The 31st Supercomputing Conference (SC) - commemorating 30 years since the first Supercomputing in 1988 - kicked off in Dallas yesterday, taking over the Kay Ba Read more…

By Tiffany Trader

Looking for Light Reading? NSF-backed ‘Comic Books’ Tackle Quantum Computing

January 28, 2019

Still baffled by quantum computing? How about turning to comic books (graphic novels for the well-read among you) for some clarity and a little humor on QC. The Read more…

By John Russell

Contract Signed for New Finnish Supercomputer

December 13, 2018

After the official contract signing yesterday, configuration details were made public for the new BullSequana system that the Finnish IT Center for Science (CSC Read more…

By Tiffany Trader

Leading Solution Providers

SC 18 Virtual Booth Video Tour

Advania @ SC18 AMD @ SC18
ASRock Rack @ SC18
DDN Storage @ SC18
HPE @ SC18
IBM @ SC18
Lenovo @ SC18 Mellanox Technologies @ SC18
NVIDIA @ SC18
One Stop Systems @ SC18
Oracle @ SC18 Panasas @ SC18
Supermicro @ SC18 SUSE @ SC18 TYAN @ SC18
Verne Global @ SC18

Deep500: ETH Researchers Introduce New Deep Learning Benchmark for HPC

February 5, 2019

ETH researchers have developed a new deep learning benchmarking environment – Deep500 – they say is “the first distributed and reproducible benchmarking s Read more…

By John Russell

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst o Read more…

By Tiffany Trader

IBM Quantum Update: Q System One Launch, New Collaborators, and QC Center Plans

January 10, 2019

IBM made three significant quantum computing announcements at CES this week. One was introduction of IBM Q System One; it’s really the integration of IBM’s Read more…

By John Russell

Nvidia’s Jensen Huang Delivers Vision for the New HPC

November 14, 2018

For nearly two hours on Monday at SC18, Jensen Huang, CEO of Nvidia, presented his expansive view of the future of HPC (and computing in general) as only he can do. Animated. Backstopped by a stream of data charts, product photos, and even a beautiful image of supernovae... Read more…

By John Russell

HPC Reflections and (Mostly Hopeful) Predictions

December 19, 2018

So much ‘spaghetti’ gets tossed on walls by the technology community (vendors and researchers) to see what sticks that it is often difficult to peer through Read more…

By John Russell

IBM Bets $2B Seeking 1000X AI Hardware Performance Boost

February 7, 2019

For now, AI systems are mostly machine learning-based and “narrow” – powerful as they are by today's standards, they're limited to performing a few, narro Read more…

By Doug Black

The Deep500 – Researchers Tackle an HPC Benchmark for Deep Learning

January 7, 2019

How do you know if an HPC system, particularly a larger-scale system, is well-suited for deep learning workloads? Today, that’s not an easy question to answer Read more…

By John Russell

Intel Confirms 48-Core Cascade Lake-AP for 2019

November 4, 2018

As part of the run-up to SC18, taking place in Dallas next week (Nov. 11-16), Intel is doling out info on its next-gen Cascade Lake family of Xeon processors, specifically the “Advanced Processor” version (Cascade Lake-AP), architected for high-performance computing, artificial intelligence and infrastructure-as-a-service workloads. Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This