Cloud or Not to Cloud – that is the question

The IT world is locked in an ongoing debate over the usefulness of Cloud Computing; those who believe it directly affects ROI, and those who waver in its importance and believe there is no sure way to keep data safe within the Cloud. To help fuel and resolve the debate, the European Financial industry is assembling in the Netherlands for the FST Summit Europe between the 21 – 24 September.

This committee of CIO’s, CISO’s, Heads of Architecture and Compliance have highlighted cloud computing as a major talking point and are specifically interested in the pitfalls as well as the benefits to determine if this is a viable solution for cost saving initiatives. With representation from major financial institutions like Credit Suisse, Rabobank International, UBS Allianz and Deutsche Bank the need to look at solutions that save on a tight IT budget can be used when providing effective security, data storage and infrastructures.

Markus Shulz, the Global Compliance Officer at Zurich Financial Services explained on Thursday that in a post-financial crises, regulation is expected to increase, specifically in a short term environment, but will likely have long-term effects. While there are many facets to the implications of an increasingly regulated financial environment, this concept does set the stage as to whether cloud computing would survive the obstacles of a strongly regulated industry.

Another consequence of Markus Shulz’s regulated environment is that Senior Management are scrutinized more than other levels of leadership, and these are the budget holders and implementers of cost effective technologies solutions and infrastructures. These are the IT professionals that will be able to determine whether the cloud computing market has matured enough to handle the needs they face when providing kpi’s to the C-level directors.

From a security standpoint the cloud computing technologies need to prove that all aspects of its environment are safe from hackers and prying eyes. The major decisions facing successful implementation of cloud technologies is whether to use a solution providers cloud or bring the cloud inside and oversee the process internally. Vmware and McAfee were locking horns on this issue.

Vmware has taken the standpoint that a hybrid cloud that enables enterprises to hand the transfer of flow between internal data and private clouds and is the most viable option. On the other hand, McAfee is boasting of its ability to provide stronger imbedded security options for private cloud development based on its recent acquisition of Intel. The argument relies on IT departments running the cloud exclusively internally whilst understanding that most public clouds cannot provide the security and infrastructure required of a versatile enterprise.

While the end of this gathering will provide clarity as to the arguments associated with the numerous potential outcomes for implementation of cloud computing, the undeniable consensus is that cloud computing is going to be with us for a number of years. One thing that stands as a testament to the financial industry is that it is able to work in every industry and translate problems and obstacles into bridges toward success.

Convergence of Industries Proves Beneficial to Financial Institutions

It is well know that as a region, Latin America is seeing great growth in their markets and with it the broader use of technology is also. The concept of internet banking has boomed within the Latin American region, with over 70 percent of retail banks now offering internet banking to clients.

The financial institutions of Latin America are taking the opportunity to capitalize on the convergence of the Telco and IT industries by developing services for more mobile customers. Is the region capable of making the transition to a mobile focus?

With new forecasts from ABI Research indicating that in 2015 about 244 million people worldwide will carry out financial transactions using their mobile phones, the answer seems to be yes. This, coupled with the Gates foundation announcing a grant of 12.5 million dollars in support of mobile banking initiative in the region, allows for the popularization needed for financial institutions to make the most of this change.

The help of the Gates foundation allows people who previously couldn’t afford to sacrifice potential earnings to visit a branch and open an account the chance to develop savings through mobile accounts.

A hurdle for financial institutions is the need to adapt applications as there is more than one way to develop the right combination. An attendee of the FST LA Summit Rodolfo Gasparri, CIO of Banco Mercantil explains "It's a balance that one must do, what level of security and retrieval of information required, ie, measuring how long until the functionality is guaranteed, usually they are beginning to segment and define critical applications”.

The new information that Intel is acquiring McAfee for $7.68 billion in cash is good news for IT directors and managers at major financial institutions, because smart phones will automatically be installed with security software when coupled with Intel hardware. This leaves consumers feeling safer about sharing personal information and carrying out financial transactions over their mobile devices.

The topics of integrating technology service to ease the transition of mobile banking, as well as enterprise level services, are of major interest to industry leaders like Kelson Corte, CIO of Banco De Brasilia, Mario Gaete, CIO & COO of BCI, Stuart Pallant, CIO of Americas at Standard Bank and Laura Rodriguez, VP of Technology at Banco Meridian SA who are attending the FST Summit from the 1st through the 3rd of December in Mexico.

Mobile banking is not the only place seeing growth. Trading communications are also seeing increased benefits for the financial industry when prioritizing and speeding up market transactions.

The IQ/MAX is known for its ability to provide maximum resiliency and reliability, the turret supports redundant network connections to help increase productivity and provide unparalleled trading support. The system also allows traders to prioritize information in order of importance to enhance speed of transactions, and the benefits have been seen by the likes of Laura Rodriguez of Banco Meridian.

The increase in Latin America’s presence from an economic standpoint is developing niche markets for the implementation of technologies that financial institutions are embracing. The future of this area is bright and with potential still needing to be fulfilled it will be exciting to see the impact technology will have for those outside of Latin America.

Latin America Finds Growth

Latest reports from Brazil suggest that the economy’s growth is reaching sustainable levels in Latin America. Inflation is expected to end above centre of the government target, but despite this growth the market seems to be maintaining a sustainable pace and not overheating. The first Quarter of this year has seen the biggest economy growth since 1996 when the government implemented its current methodology. Growth is fantastic for the economy but fears among the consumer of increasing prices and security threats have lead to the meetings of some of the continents leading names in finance in Latin America.

The Growth seen has boosted the countries ranking within the global arena and has allowed there voice to be heard in negotiations over economic and financial reform. Over 50 leading executives from the finance industry including Banco Azteca - Juan Arevalo, CIO, Banco Santander Brazil - Claudio Prado, CIO, HSBC Mexico - Ignacio Vera, CIO, Standard Bank - Stuart Pallant, CIO for Americas, will be meeting at the FST LA summit to discuss how to maintain sustainable growth and how playing with the ‘big boys’ will affect the way they do business.

Europe, Asia and the U.S. still recovering from the global crash many economies across Latin America have rebounded. The demand for Latin America commodities such as Mexico’s oil, Chile’s copper and Brazils Iron Ore means that economists predict a period of sustained growth. On Tuesday Brazil revealed the biggest economy growth since 1996 when the government implemented its current methodology in the first quarter of this year of 9%. At last Latin America is having their voice heard and finding themselves with a greater persuasive power.

Where Latin America has differed from other countries is there debt management while enjoying the political and global positioning the have paid back $15.5 billion over the last 5 years and last year agreed to purchase $10 billion in IMF bonds to help it finance programmes. Latin America is now even offering advice to Europe suggesting that the continent adopts reform to enhance productivity and competitiveness.

Attendees to the latest FST LA summit will be discussing the latest in technology trends and investment opportunities to ensure continuous, but more importantly safe growth, it seems that governments and industry leaders have at last learnt the lessons from the economic crash. With the increased pressure that comes hand in hand with success within a global market it has become crucial for financial services to be implemented through efficient process networks. Business Process Management’s systems have become increasingly vital for business operations, driving profits and removing bottlenecks. The right systems and management programs will be key to continue the success that Latin America is beginning to see.