Post on 16-Jul-2015
CloudCamp Chicago
“FinTech”
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
Emcee
Margaret WalkerCohesive Networks
Tweet: @CloudCamp_Chi #cloudcamp
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
… sponsored by you!
William Knowles - Evident.ioAdam Kallish - IBM Deenadayalan Narayanaswamy - ClearStory DataReca Mikaili - MarkitXLynn Diegel - The Evanston GroupSusan Emery - Viewpointe LLCBriggs Ginther - MarkitxJohn Downey - BraintreeChuck Mackie - Maven Wave PartnersJim Chen - iCAIR/NorthwesternMehdi Zhiri - Societe Generale / NewedgePierre Tamisier - Societe Generale
Mark your calendars - CloudCamp Chicago on May 13
6:00 pm Introductions6:05 pm: Lightning Talks
"Selling to the Sell-Side" - Sam Perl, Founding Partner at Fundology"Cloud Culture Shock in Financial Services" - Susan Emery, Director of Product Management at Viewpointe @semery_vp"Put away the credit card, a look at alternative payment methods" - John Downey, Security Lead at Braintree @jtdowney"Micro-services and how they apply to FinTech" - Eero Pikat, President at BarChart @eeropikat"What Financial Cloud Should Be" - Patrick Kerpan, CEO at Cohesive Networks @pjktech
7:00 pm: Unpanel 7:45 pm: Unconference / Networking, drinks and pizza
Agenda
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
"Selling to the Sell-Side"
Sam PerlFounding Partner at Fundology
Tweet: #cloudcamp
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
Selling to the Sell-Side
Sam Perl DealRoom by Fundology
Our Two Sales Challenges
1) We’re selling to salespeople 2) We’re selling in a competitive, consolidated, commodity market
We’re selling to salespeople
Investment bankers sell money & service…commodities Their strategy is to sell reputation & expertise
We’re selling to salespeople
Ex: Free Market Outlooks Content marketing meshes w/ their service
We’re selling to salespeople
Stage 1: Sell their service Stage 2: Sell their client Salespeople are hard to sell!
We’re selling in a competitive market
3 Firms… 80% of the market 20 Firms… 20% of the market
We’re selling in a competitive market
Barriers to entry at high end: Risk aversion, relationships, principal/agency problem Barriers to entry at low end: Price competition
Our Two Sales Solutions
1) If you can’t beat’em, avoid’em 2) Sell the way your clients sell
If you can’t beat’em, avoid’em
Researched ways to differentiate product Created a new market to avoid competitive barriers
Sell the way your clients sell
Become an expert in your value proposition Content marketing that meshes with offering
Takeaways
Take advantage of research, redefine your competitive market, and understand target psychology
"Cloud Culture Shock in Financial Services"
Susan EmeryDirector of Product Management at Viewpointe
Tweet: @semery_vp #cloudcamp
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Cloud Culture Shock in Financial Services
Susan Emery
Product Management
1
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
o Front Office • Retail Banking/Consumer Banking
• Corporate Banking/Business Banking/Commercial Banking
• Global Banking & Markets/Government/Global Corporation Banking
• Investment Banking/Wealth Management/Stock Brokerage (subsidiary)
• Insurance Selling
o Middle Office • Finance
• Operations & IT
• Security & Risk
• Legal
o Back Office • Administration
• Settlements, Confirmation, & Clearing
• Record Management
• Regulatory Compliance
• Accounting
What do Financial Services Organizations Look Like?
2
Back O
ffice
Mid
dle
Offic
e
Fro
nt O
ffice
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Challenges in Financial Services
o Volume of Data – speed of creation, storage of versions
o Diversity of Data – social media, IMs, audio, video
o Regulation & Compliance – complexity across LOBs, audits
o Diverse Workforce – CIO vs a Teller
o Public/Private – ethical walls and information barriers
o Distributed Workforce – branches, global offices
o International Records – data/records management rulings
o Information Governance & Disposition – don’t keep everything
o Reputation Risk & Fines – “one bad apple”
o Paper!
3
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Cloud Resistance
o Loss of jobs & budget - IT
o Unclear data ownership, jurisdiction
o Loss of perceived control
o Assumed increased risk
o Assumed decreased security
o Assumed additional costs
o Quality of service concerns
o Lack of cloud understanding &
lots of confusion
4
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Benefits of Moving to the Cloud
5
o Money savings – growth, time, etc.
o Efficiency across less critical processes
o Infrastructure currency & tech refresh
o Visibility of service levels
o Realize opportunity cost, resource use
o Seamless cloud to cloud info flow
o Visibility, improved tracking, reporting,
internal billing
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
What FinTech is in the Cloud and Why?
o Ongoing Initiatives
• Efficiency
• Technology refresh
• Outsourcing
• OPEX vs CAPEX
o Specific Initiatives
• Paperless branch
• 360° view of customer
• Cloud First
Common Cloud Solutions
o Archiving & Imaging
o Confirmations & Settlements
o Research/Collaboration –
Bloomberg
o CRM – SalesForce.com
o Active Email – Office 365
6
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Be Prepared
1. Show you’re more secure– have a prepared security white paper
2. Standard contract with a contingency plan & clear ownership
3. Provide a back up and recovery strategy with defined test cycles
4. Focus on service aspects vs functionality
5. Include example reports, dashboard views, alerts
6. Prove your ROI, build a calculator or guide
7
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Be Prepared
1. Show you’re more secure– have a prepared security white paper
2. Standard contract with a contingency plan & clear ownership
3. Provide a back up and recovery strategy with defined test cycles
4. Focus on service aspects vs functionality
5. Include example reports, dashboard views, alerts
6. Prove your ROI, build a calculator or guide
8
• Promote case studies
• Talk to all areas, LOBs that touch your process
• Don’t bother with the cold email blast
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Future Vision
o It won’t be called cloud forever
o Common cloud vendors will play better together
o More “bank-owned” cloud solutions
o Front office will undergo drastic changes
o Larger breaches and bigger fines
9
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Viewpointe® Proprietary & Confidential Information. Copyright Viewpointe® 2015. All Rights Reserved.
Questions?
Thank you
Susan Emery
Director of Product Management
Viewpointe, LLC
847-858-7328 (m)
susan.emery@viewpointe.com
visit us at: www.viewpointe.com/OnPointe
10
"Put away the credit card, a look at alternative payment methods"
John DowneySecurity Lead at Braintree
Tweet: @jtdowney #cloudcamp
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
Put away the credit cardA look at alternative payment methods
@jtdowney 1
@jtdowney 2
Why credit cards?
@jtdowney 3
• Ubiquitous (in the US)
• Accepted by most merchants
• Issued by most banks
• Anti-fraud systems
• Chargeback process
• You have an option if you want money back
@jtdowney 4
Why alternatives?
@jtdowney 5
• Lower fees
• Privacy
• Pseudonymity
• Security
• Ubiquitous (outside the US)
• Not tied to credit
@jtdowney 6
Bitcoin
• Typically lower fees (adjustable)
• Some association with criminal activities
• Offers pseudonymity
• Lackluster sales performance
• No chargebacks
@jtdowney 7
Direct Debit• Much lower fees
• Drawn directly from your bank account
• Not tied to credit
• Expected way to pay
@jtdowney 8
Direct Debit• Automated Clearing House [ACH] (US)
• Elektronisches Lastschriftverfahren [ELV] (Germany)
• Single European Payments Area [SEPA]
• iDEAL - Netherlands
• "Direct Debit" in other places (UK, etc)
@jtdowney 9
Digital Wallets• Security by abstraction
• Often built on existing Credit Card or Direct Debit rails
• Familiarity
• Often see increase in conversion
• Lower the purchase barrier
@jtdowney 10
Digital Wallets• PayPal
• Alipay (huge in China)
• Apple Pay
• Google Wallet
• Pay with Amazon
• <Social Network> Pay
@jtdowney 11
✔ Give your users options
@jtdowney 12
⚠ Don't overwhelm them
@jtdowney 13
It is increasingly expected of a
Global business
@jtdowney 14
Photos• https://flic.kr/p/kkUu3B• https://flic.kr/p/gGQRbT• https://flic.kr/p/dtsf7h• https://flic.kr/p/dTUAhR
@jtdowney 15
"Micro-services and how they apply to FinTech"
Eero PikatPresident at BarChart
Tweet: @eeropikat #cloudcamp
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
Eero Pikat President
Role of Microservices in FinTech
What is a Microservice?
• Software Architecture / Design Concept
• Software is composed of a series of independent services, each performing a very specific, small task
• Each service is it's own process, and generally runs over lightweight HTTP
• Architecture demands that a bare minimum of core services have interdependencies, thus creating a very loose, mostly decoupled set of services
• Essentially, it's like an API where each function/method is actually it's own process / server
Why use Microservices?
• Ability to upgrade and deploy small parts of an application. Change cycles are service independent, and upgrades can be small, independently tested, and deployed without major QA of entire server systems
• Process / Service independence means language and infrastructure independence. Some services can be in Java and others in Python, Ruby, etc.
• As independent services, you can scale services independently
• Some services are used more heavily than others
• In a monolithic architecture, you must scale the entire server
• Good fit for a Cloud-style or Cloud-driven software architecture
• Limited, well defined impact of individual service failure
Microservices in FinTech Apps?
• Natural way of app design
• Both your services and 3rd party services as micro-service eco-system
• Example
• Portfolio / User data management service
• Trading Gateway
• Realtime Market Data provider / service
• Historical Market Data provider / service
• Maps nicely to Cloud-based API solutions such as Barchart OnDemand, Tradier, CQG
• Apps can be built with proper abstraction to allow for "plug and play" changes to service providers
"What Financial Cloud Should Be”
Patrick Kerpan CEO at Cohesive Networks
Tweet: @pjktech #cloudcamp
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
copyright 2015
The FinCloud I Am Looking ForPatrick Kerpan, CEO, Cohesive Networks
copyright 2015
About Me• Currently CEO of Cohesive Networks, prior CTO of
CohesiveFT, GM and CTO at Borland Software.
• Previously MD of Derivatives Technology CIBC, Global Head of Financial Engineering Applications (trading, risk, sales, pricing, maths, stats) for Swiss Bank Corp (now UBS).
2
Background
copyright 2015
The Basics of FinCloud• Prices• Contract / Instrument specs (reference) • Calendar Services• Models • Position DB • All with APIs!• Pay-as-you-Go• So what’s out there?
3
copyright 2015
Prices - Are they News or Data? (Delay from exchange)
4
PRICES / QUOTES
copyright 2015
Prices - Are they News or Data? (Delay from portals)
5
PRICES / QUOTES
copyright 2015
Prices - Are they News or Data? (lots of paid services)
6
PRICES / QUOTES
copyright 2015
Human “consumable” - less visible is machine consumable
7
Contract Specs
copyright 2015
I want all listed instruments, options, globally, their structures, etc..
8
Reference Data
copyright 2015
Lots of Granularity Needed!
9
Calendar Service
copyright 2015
Need services - not libraries
10
Models
copyright 2015
Looking for Position DB-as-a-Service
11
Positions
copyright 2015
APIs to Everything!
12
APIs
copyright 2015
Pay-as-you-go….hmmmm
13
Pay-as-you-Go
copyright 2015
Nothing like this with financial data…yet
14
WHAT’S OUT THERE?
copyright 2015
Nothing like this for position DB…yet
15
WHAT’S OUT THERE?
copyright 2015
A pseudo-cloud that came and went…
16
WHAT’S OUT THERE?
copyright 2015
The Closest Thing I Found…
17
WHAT’S OUT THERE?
DON’T RED CARD MEI DO NOT
KNOW THEM!!!
copyright 2015
I guess I am looking for Hacker FinCloud
• API-first, data-first, objects-first, services first
• Modeled after things like AWS Big Data Sets, RDS, Pay-as-you-Go instances, Marketplace Instances.
18
WHAT’S OUT THERE?
copyright 2015
I guess I am looking for Hacker FinCloud
•Complete price transparency
•Comprehensive trials
19
WHAT’S OUT THERE?
copyright 2015
I guess I am looking for Hacker FinCloud
• A “financial milieu”? Something you can reach into and explore as opposed to request what you know
•5 smart guys, some credit cards, and they can take on larger market participants on a $for$ basis.
20
WHAT’S OUT THERE?
copyright 2015
THANKS!
My takeaways from my lightning research•Is there a market for true “cloudy” financial goods
and services? Doesn’t seem like it.•Cartel pricing, old business models, and regulatory
structures that tend to favor large institutions over financial entrepreneurs tilt the playing field.
•My FinCloud is probably coming, but the disruption is probably 5+ years away.
21
Un-panel Discussion
volunteer to join the panel & ask questions from the floor!
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by
Unconference
Small groups & discussions, network
Pizza’s almost here!
#cloudcamp@CloudCamp_CHI
Sponsored by
Hosted by