Google Cloud Lighthouse Event for the Financial Services

Transcript

1. LightHouse​ ​Event​ ​​Financial​ ​Services​ ​Industry
   A​ ​disrupted​ ​world
   Preparing​ ​for​ ​next​ ​generation​ ​financial​ ​services
   Amsterdam​ ​October​ ​13,​ ​2017
   Where​ ​other​ ​industries​ ​were​ ​quick​ ​to​ ​embrace​ ​cloud​ ​technology,
   Financial​ ​Services,​ ​a​ ​traditionally​ ​IT-heavy​ ​sector,​ ​has​ ​been​ ​struggling
   with​ ​the​ ​complexities​ ​of​ ​security​ ​and​ ​privacy​ ​regulations.​ ​This​ ​caused​ ​a
   slowdown​ ​in​ ​cloud​ ​adoption​ ​and​ ​created​ ​a​ ​barrier​ ​for​ ​innovation.​ ​The
   good​ ​news​ ​is:​ ​times​ ​are​ ​changing.
   By the end of next year most banks and insurers will have implemented
   one or more cloud solutions to support production workloads. Financial
   Services are increasingly picking up the pace of cloud adoption. But the
   work at hand is still momentous. Google facilitated an open discussion
   about innovations, cloud strategies and challenges in the Financial
   Services​ ​industry.
   ‘By​
   ​
   the​
   ​
   end​
   ​
   of​
   ​
   2018,​
   ​
   65%​
   ​
   of​
   ​
   the​
   ​
   banks​
   ​
   and​
   ​
   insurers​
   ​
   will​
   ​
   have​
   ​
   implemented
   cloud​
   ​
   solutions​
   ​
   to​
   ​
   support​
   ​
   production​
   ​
   workloads​
   ​
   and​
   ​
   services’​
   ​
   ​
   (SOURCE:​ ​​IDC​)
   THE​ ​GOOGLE​ ​CLOUD​ ​FINANCIAL​ ​SERVICES​ ​TEAM
   LEE​ ​BOONSTRA,​ ​PETRA​ ​STOJANOVIC,​ ​JENNIFER​ ​SKAFF
   

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2. KEYNOTE
   PETRA​ ​STOJANOVIC,​ ​BUSINESS​ ​MANAGER​ ​FINANCIAL​ ​SERVICES,
   GOOGLE​ ​CLOUD
   The well-attended event is kicked off by Petra Stojanovic, team lead of
   the Google’s Finance team. She explains the interested crowd how
   priorities shift from efficiency and profitability to innovation and speed.
   How to make optimal use of the data that banks have in abundance?
   How to attract talented employees? How to retain customers? All these
   questions lead inevitably to the central
   theme; how can the banks and insurers
   innovate while keeping up with the
   increasing demands of security and
   compliancy​ ​regulations?
   Stojanovic is crystal clear: a hybrid cloud that
   combines public and existing on-prem
   solutions can enable financial services to
   make the transition, especially when paired
   with a strong support of Open Source
   technology. This is what the Google Cloud
   delivers.
   Stojanovic uses the analogy of Lego-bricks to support her argument.
   You can buy Lego either in pre-configured theme packages or as
   separate bricks in all imaginable shapes and colors. Google delivers the
   bricks, but thinks solutions. The bricks consist of a portfolio of over 60
   products and services, ranging from core computing to storage and
   networking,​ ​and​ ​from​ ​big​ ​data​ ​to​ ​identity
   and security components. Together they create complex and unique
   solutions​ ​that​ ​enable​ ​banks​ ​and​ ​insurances​ ​to​ ​innovate.
   The heart of today’s innovation is ​machine learning​
   . Fraud-detection
   systems, Risk Modeling, Data Insight, Call Center Automation and
   Chatbot technology are all examples of Financial Services solutions that
   rely heavily on Artificial Intelligence (AI). AI technology is at the core of
   all these propositions and is battle-tested in Google’s own products and
   services​ ​for​ ​over​ ​a​ ​decade.
   Concerns of privacy and security legislation have however been a major
   reason for banks to be hesitant in adopting the public cloud. This is
   changing rapidly. The Dutch financial regulator; De Nederlandsche
   Bank (DNB) took on a primary role in certifying Google’s Cloud
   Contracts. Customers can rely on their judgement to trust the Google
   Cloud​ ​just​ ​like​ ​other​ ​public​ ​cloud​ ​providers.
   

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3. GOOGLE​ ​CLOUD​ ​PLATFORM​ ​KEY​ ​DIFFERENTIATORS
   LEE​ ​BOONSTRA,​​ ​​FINANCE​ ​CUSTOMER​ ​ENGINEER
   ‘The​
   ​
   AI-first​
   ​
   principle​
   ​
   drives​
   ​
   all​
   ​
   Google’s​
   ​
   solutions.​
   ​
   Delivered
   over​
   ​
   a​
   ​
   superfast​
   ​
   infrastructure​
   ​
   with​
   ​
   maximum​
   ​
   flexibility.’
   Lee​ ​Boonstra
   Best Global Network Infrastructure. ​Google owns the largest public
   cloud network on the globe. Stretching over 100k+ miles of fiber cable
   under the oceans, it delivers a 10x faster connection than normal
   internet. ​‘There are over 100 points of access, so you can join virtually
   anywhere​
   ​
   to​
   ​
   enjoy​
   ​
   Google’​
   ​
   superfast​
   ​
   infrastructure,’​
   ​
   ​
   adds​ ​Boonstra.
   Full Control over resources and usage. Any large enterprise needs
   provisions for multiple access levels but also full control over the use of
   resources. The Google Cloud fully supports these enterprise needs - on
   contractual​ ​level​ ​but​ ​also​ ​in​ ​the​ ​product​ ​user-interface.
   Flexible Cloud Models. ​Whether you want full control thru a IAAS
   model (in Google terms; Compute Engine) or PAAS (fully managed by
   Google, App Engine) or anything in between, everything is possible. You
   can use the GCP Decision Tree to choose the right solution for your
   specific​ ​requirements.
   THE​ ​CONSULTANTS’​ ​PERSPECTIVE
   AD​ ​VAN​ ​DER​ ​GRAAFF,​​ ​​DIRECTOR​​ ​​PWC​ ​FINANCIAL​ ​SERVICES
   The next speaker is Ad van der Graaff, director at PWC and consultant
   for Financial Services Technology. His message leaves no room for
   doubt; banks cannot any longer ignore the immense challenges they
   are facing. At the heart of these challenges are demographics. The
   millennial generation will expect from financial institutions the same
   level of service they are used to in their online world. Banks therefore
   have to rethink their function and focus. Van der Graaff sums up the
   current banking functions and interactively discusses with the
   audience​ ​which​ ​of​ ​these​ ​will​ ​or​ ​will​ ​not​ ​survive​ ​the​ ​next​ ​generation.
   ‘The millennials are digital
   natives. They’d rather go to the
   dentist than visit a bank. How to
   respond to the needs of this
   generation?’
   

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4. Ad​ ​van​ ​der​ ​Graaff
   The change that is required is massive and impacts people and systems
   who easily become inhibitors of change. Banks will need to work
   simultaneously on creating effective teams, fast automation and a
   modular​ ​architecture​ ​to​ ​be​ ​able​ ​to​ ​make​ ​this​ ​transition.
   Public Cloud neatly fits these requirements. Cloud is not just IAAS. The
   ready-made that are available make the process much faster. On a
   question from the audience on how much time such a radical
   transition should take, Van der Graaff answers: ​‘It is an iterative process.
   You can start within six weeks, but the complete transformation
   might​
   ​
   take​
   ​
   up​
   ​
   till​
   ​
   ten​
   ​
   years.’
   USE​ ​CASE:​ ​MACHINE​ ​LEARNING​ ​IN​ ​PRACTICE
   FRANK​ ​VAN​ ​DER​ ​DONK,​​ ​​DIRECTOR​​ ​​SCHADEGARANT
   Not only banks, also insurers struggle with innovation. Frank van Donk,
   Director of Schadegarant, -an organization that routes and controls the
   car repair chain- faced an interesting question. How to maintain the
   quality of repairs in the face of
   the incredible speed of
   innovation in the automotive
   industry?
   It is the nightmare scenario of
   every repair shop: a just
   repaired car causes an accident
   because the sensors or another
   electronic device are not
   properly​ ​handled​ ​by​ ​the​ ​technician.
   Up till recently, car repairs were filtered and validated based on a
   number of hard-coded business rules. For example; an impact at the
   front should not result in the replacement of a back light. But as cars
   are quickly evolving into high tech devices, hard-coded rules just won’t
   do. Making manual updates to the business rules has become
   impossible.
   Schadegarant contracted
   Xomnia to solve this problem.
   Xomnia, represented by
   William van Lith, explains how
   they replaced the inflexible
   system by a data-driven rule
   engine that taps into the large
   existing body of data. Using
   machine learning, it analyzes
   all earlier accidents with similar
   characteristics, like car type,
   model and speed at impact. It
   is now able to detect anomalies in a split second. This artificial
   intelligence solution runs on the Google Cloud Platform and will soon
   include spare parts damage info, climate information and deep
   learning from images, so that chances of getting into an accident due
   to​ ​repair​ ​mistakes​ ​will​ ​be​ ​reduced​ ​to​ ​a​ ​minimal!
   

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5. Q&A
   VINOTH​ ​RAMAN,​ ​GLOBAL​ ​HEAD​ ​OF​ ​ROBOTICS,​ ​ING
   ‘We​
   ​
   are​
   ​
   a​
   ​
   technology​
   ​
   company
   with​
   ​
   a​
   ​
   banking​
   ​
   license.’
   Quote​ ​of​ ​​Rolf​ ​Hamers​ ​​CEO​ ​ING
   A​ ​lively​ ​Q&A​ ​​with​ ​ING’s​ ​Vinoth​ ​Roman​ ​follows.
   Stojanovic​:​ ​​‘How​
   ​
   do​
   ​
   the​
   ​
   traditional​
   ​
   banks​
   ​
   differ​
   ​
   from​
   ​
   FinTech?’
   Raman​: ‘Although Fintech is cool and uses the newest technologies,
   they don’t have the trust we build over many years. But how to
   embrace the latest technology to provide better services? For that we
   have​ ​to​ ​improve​ ​our​ ​current​ ​service​ ​and​ ​think​ ​beyond​ ​banking.’
   Stojanovic​: ​‘Can you give us an example of what you are looking at,
   and​
   ​
   what​
   ​
   the​
   ​
   hurdles​
   ​
   are?’
   Raman​: ‘Like Google, ING also believes that AI is a crucial enabler. AI
   can be used for many services, like chatbot our Marie in Belgium.
   Chatbot technology is not yet fully developed, but our position is that
   you can’t wait. You need to get experience and learn from mistakes. For
   example, sometimes Marie answers too quickly. This irritates our
   customers. So we must make her polite! But on the other hand, we
   found out that people don’t want the bot to be too ‘humanlike.’ They
   prefer to know that they are talking to a machine, so being transparent
   is​ ​crucial.’
   Stojanovic​:​ ​​‘How​
   ​
   did​
   ​
   you​
   ​
   go​
   ​
   about​
   ​
   the​
   ​
   regulations?’
   Raman​: ‘With respect to privacy and security, there are always three
   layers to consider. The first is: can we trust the technology. Is it mature
   enough? You should also consider if your own organization is ready to
   adopt it. Do they understand its implications and can they deal with
   the technical and organizational changes they require? And third and
   most importantly, do your customers trust the technology? You can
   only​ ​find​ ​out​ ​by​ ​doing,​ ​not​ ​by​ ​waiting!
   

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6. THE​ ​FAR​ ​HORIZON
   STIJN​ ​DERACHE,​ ​ACCOUNT​ ​EXECUTIVE​ ​FOR​ ​FINANCIAL​ ​SERVICES,​ ​INTEL
   Derache takes the audience to the future of computing, looking to the
   horizon​ ​of​ ​next​ ​year,​ ​2022​ ​and​ ​2036.
   ‘We​
   ​
   are​
   ​
   moving​
   ​
   toward​
   ​
   a​
   ​
   world
   where​
   ​
   the​
   ​
   boundary​
   ​
   between
   digital​
   ​
   and​
   ​
   physical​
   ​
   is​
   ​
   eroding,
   computing​
   ​
   is​
   ​
   truly​
   ​
   mobile​
   ​
   and
   ubiquitous,​
   ​
   and​
   ​
   everything​
   ​
   is
   smart​
   ​
   and​
   ​
   connected.’
   Stijn​ ​Derache​ ​​Account​ ​Executive
   Financial​ ​Services,​ ​Intel
   Intel’s Saffron technology is at the forefront of accelerating AI. It uses a
   human, brain-like structure. ​‘Until now we have been going the other
   way, that is in order to understand the brain we have used the
   computer as a model for it. Perhaps it is time reverse this reasoning to
   understand where we should go with the computer, we should look to
   the brain for some clues,’ said co-founder of INtel, Dr Robert Noyce
   already in 1984. Now is the time that this prophecy comes true. Saffron
   is a Natural Intelligence Platform that learns, adapts, anticipates and
   reacts very similar to the human mind. The technology is be available
   on the Google Cloud Platform and Open Source frameworks like
   Kubernetes and Tenserflow are optimized for Intel. In this way,
   customers​ ​enjoy​ ​best​ ​of​ ​both​ ​worlds.
   DEMO’S
   Hadoop​ ​in​ ​the​ ​Cloud​ ​(Dataproc)​ ​​Robert​ ​Saxby,​ ​Google
   Apigee​,​ ​Kevin​ ​Bouwmeester,​ ​Google
   Machine​ ​Learning​​ ​Nicolas​ ​Deruytter,​ ​Datatonic
   Machine​ ​Learning​​ ​Felipe​ ​Chies,​ ​Intel
   Google​ ​Home​​ ​Lee​ ​Boonstra,​ ​Google
   www.google.com/cloud
   

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