cloudcamp chicago april 2015 - "fintech"

CloudCamp Chicago

“FinTech”

#cloudcamp@CloudCamp_CHI

Sponsored by

Hosted by

Margaret WalkerCohesive Networks

Tweet: @CloudCamp_Chi #cloudcamp

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

Sponsored by

Hosted by

"Selling to the Sell-Side"

Sam PerlFounding Partner at Fundology

Tweet: #cloudcamp

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

Ex: Free Market Outlooks Content marketing meshes w/ their service

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

Sponsored by

Hosted by

Cloud Culture Shock in Financial Services

Susan Emery

Product Management

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?

Back O

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!

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

Benefits of Moving to the Cloud

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

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

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

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

• Promote case studies

• Talk to all areas, LOBs that touch your process

• Don’t bother with the cold email blast

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

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

"Put away the credit card, a look at alternative payment methods"

John DowneySecurity Lead at Braintree

Tweet: @jtdowney #cloudcamp

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

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

Sponsored by

Hosted by

The FinCloud I Am Looking ForPatrick Kerpan, CEO, Cohesive Networks

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).

Background

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?

Prices - Are they News or Data? (Delay from exchange)

PRICES / QUOTES

Prices - Are they News or Data? (Delay from portals)

PRICES / QUOTES

Prices - Are they News or Data? (lots of paid services)

PRICES / QUOTES

Human “consumable” - less visible is machine consumable

Contract Specs

I want all listed instruments, options, globally, their structures, etc..

Reference Data

Lots of Granularity Needed!

Calendar Service

Need services - not libraries

Models

Looking for Position DB-as-a-Service

Positions

APIs to Everything!

Pay-as-you-go….hmmmm

Pay-as-you-Go

Nothing like this with financial data…yet

WHAT’S OUT THERE?

Nothing like this for position DB…yet

WHAT’S OUT THERE?

A pseudo-cloud that came and went…

WHAT’S OUT THERE?

The Closest Thing I Found…

WHAT’S OUT THERE?

DON’T RED CARD MEI DO NOT

KNOW THEM!!!

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.

WHAT’S OUT THERE?

•Complete price transparency

•Comprehensive trials

WHAT’S OUT THERE?

• 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.

WHAT’S OUT THERE?

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.

Un-panel Discussion

volunteer to join the panel & ask questions from the floor!

Sponsored by

Hosted by

Unconference

Small groups & discussions, network

Pizza’s almost here!

Sponsored by

Hosted by

cloudcamp chicago april 2015 - "fintech"

Technology

cloudcamp chicago - march 2nd 2015 - cloud security

cloudcamp milan 2009: agile servizi

thorleif wiik cloudcamp unbelievable machine company -...

cloudcamp chicago lightning talk "the internet of (insecure)...

cloudcamp- the world wide cloud

cloudcamp milan 2009: telecom italia

cloudcamp milan 2009: juniper networks

relayr presents the wunderbar cloudcamp london

cloudcamp chicago march 2nd lightning talk from michael...

cloudcamp boston - june 2, 2011

cloudcamp justin cormack hypervise my app!

cloudcamp chicago lightning talk "simplicity, storytelling...

joe baguley cloudcamp london intro 24.10.12

cloudcamp chicago nov 2104 fintech - john downey's "a...

cloudcamp chicago nov 2104 fintech - justin bouchard’s...

india tour microsoft cloudcamp

cloudcamp chicago lightning talk "iot perspectives from the...

cloudcamp chicago - june 17, 2015 the internet of things

open stack bigdata ny cloudcamp

cloudcamp chicago april 2015 - john downey's talk "put away...