Industry Solutions
FINANCIAL SERVICES
About
The Competitive Advantage of Digital Transformation for Financial Organizations
Technology innovations and a fierce competitive environment are revolutionizing the financial industry, and the focus on delivering exceptional customer experience, optimizing operations and adhering to regulations is now more important than ever. As financial organizations implement strategic initiatives such as the introduction of new digital applications and customer 360, deploy on-line services such as fraud detection, customer onboarding and loan approvals, and improve their risk management and trading processes, the need for extreme performance, speed and scale is growing.
In addition, new regulations such as instant payments and Open Banking initiatives, require banks to accelerate services from business days to seconds, while handling new transaction loads on already strained legacy systems.
GigaSpaces’ Smart DIH is a distributed in-memory Digital Integration Hub with unparalleled low-latency, high-performance and scale that aggregates and offloads from your multiple back-end systems of record. You gain the agility to introduce new digital applications and the ability to deploy real-time operational analytics and BI – across any environment.
Benefits
Deliberate and non-deliberate discrepancies create risks for the business. As the volume of data continues to grow, a simplified big data network design will help the organization scale and ensure availability.
Guaranteed data integrity, fast data processing, and real-time queries and advanced analytics power the speed and scalability required for the trade reconciliation process with reliability and accountability. This way, financial services organizations can reduce risk exposure and meet regulatory requirements while lowering operational costs.
The financial services industry is undergoing a fundamental transformation from a product-centric to a customer-centric model, and in leveraging insight-driven innovations, built on scalable, low-latency in-memory computing platforms.
Yet, reducing the institution’s risk exposure and meeting regulatory requirements while lowering operational costs is still a key challenge. By aggregating and ingesting billions of messages in real-time into a live risk result store, organizations can power hundreds of applications at the speed of real-time while maintaining transactional integrity.
The GigaSpaces DIH (Digital Integration Hub) helps traders and risk managers view their portfolio risk in real-time. It also accelerates credit and market risk simulations, optimizes TCO, and avoids over-provisioning of costly on-prem and cloud resources.
Fraud detection is a billion-dollar challenge for the financial services industry, affecting consumers and banks alike.
Deploying and running analytics and machine learning on data as it is born, enriched with historical context, can help financial organizations detect and prevent money laundering and other fraudulent activities while eliminating the need to provision new data stores for fraud detection workflows.
Smart DIH offers the speed and scale to handle the exploding growth of digital and mobile payments, helping you make more accurate real-time fraud decisions. You can reduce false positives leading to cost savings, improved customer experience and lower customer churn.
Financial institutions can differentiate in a highly competitive market by providing a great customer experience, especially as customers become more knowledgeable and demanding.
Providing a superior customer experience requires a complete view of your customer data, including interactions across different channels, transactions, accounts, portfolios, financial products owned etc. The challenge is that customer data is scattered across multiple siloed data sources and different systems of record. Smart DIH unifies your customer data in a single distributed, high-speed data store and processing hub; powering your applications and analytics with unparalleled speed and scale, to deliver an optimized customer experience.
Open banking initiatives are transforming the banking industry. But the opportunities that open banking brings introduce challenges as well. Banks need to provide and support open APIs and be ready for a significant increase in transaction volumes which are likely to strain legacy systems and lead to sub-optimized customer experience.
Smart DIH can help you meet the open banking regulation by seamlessly modernizing your legacy systems of record, with extreme processing speed and autonomous scaling to meet the expected transaction volume growth. Its microservices-based architecture allows you to rapidly introduce new and innovative services and power a customer-centric strategy.
Global financial institutions operate simultaneously in multiple markets, often running local data centers in different regions or even countries. A data locality strategy offers the extreme performance that is required for financial applications such as trading platforms. The challenge is accessing data that resides in a remote location in real-time.
With the Smart DIH multi-region replication capabilities, you can replicate data in real-time across regions while maintaining the high performance your applications require. In addition, you can deploy across hybrid, cloud and multicloud environments with just one click.
Learn how Smart DIH is being used by Financial and Insurance Services, turning them to become insight-driven.
Case Studies
Risk Analysis for Securities Trading in a Fortune-100 U.S. Financial Firm
Fast Data Access to Global eTrading Data for Risk Management and Regulation
Customer
This top 10 European banking and financial services company, active across Europe, the USA and Asia-Pacific, focuses on retail banking, corporate investments and global investments.
Business Challenge
This customer needed to be able to run a credit check in real-time before a trade with a counterpart occurs, in order to guarantee that the counterparty has enough limit to trade.
Solution
With GigaSpacesโ in-memory real-time analytics platform leveraging the WAN Gateway, this customer was able to run โcredit check solutionโ checks before a trade with a counterpart occurs, to guarantee that the counterparty has enough limit to trade.
The solution also allowed for a worldwide deployment is done (Paris, NY and London) with GigaSpaces asynchronous replication between each site. All requests are executed via the GigaSpaces platform, and all reservations, limits and client are stored in the platform as well.
Digital Transformation for Leumi, One of Israelโs Leading Banks
Fast Data Access to Global eTrading Data for Risk Management and Regulation
Customer
This top 10 European banking and financial services company, active across Europe, the USA and Asia-Pacific, focuses on retail banking, corporate investments and global investments.
Business Challenge
This customer needed to be able to run a credit check in real-time before a trade with a counterpart occurs, in order to guarantee that the counterparty has enough limit to trade.
Solution
With GigaSpacesโ in-memory real-time analytics platform leveraging the WAN Gateway, this customer was able to run โcredit check solutionโ checks before a trade with a counterpart occurs, to guarantee that the counterparty has enough limit to trade.
The solution also allowed for a worldwide deployment is done (Paris, NY and London) with GigaSpaces asynchronous replication between each site. All requests are executed via the GigaSpaces platform, and all reservations, limits and client are stored in the platform as well.
Performance Improvement for Avanza Online Banking
Performance Improvement for Avanza Online Banking
Customer
Avanza Bank Holding is the largest online stock broker in Sweden with more than 600,000 customers and the largest number of deals on the Stockholm Stock Exchange. Avanza is one of the options open to private investors who want to play an active part in their investments and savings programmes.
Business Challenge
Avanzaโs goal was to optimize its existing applications for maximum performance, as the core of their system became very tightly coupled application architecture, which proved to be difficult to change and extend with new functionalities. Avanza found it difficult to scale due to the inflexibility of legacy application and third-party tools.
Solution
With GigaSpaces, Avanza achieved major performance improvement, increasing customer experience by 100X, from hours to seconds.
Fast Data Access to Global eTrading Data for Risk Management and Regulation
Fast Data Access to Global eTrading Data for Risk Management and Regulation
Customer
This top 10 European banking and financial services company, active across Europe, the USA and Asia-Pacific, focuses on retail banking, corporate investments and global investments.
Business Challenge
This customer needed to be able to run a credit check in real-time before a trade with a counterpart occurs, in order to guarantee that the counterparty has enough limit to trade.
Solution
With GigaSpacesโ in-memory real-time analytics platform leveraging the WAN Gateway, this customer was able to run โcredit check solutionโ checks before a trade with a counterpart occurs, to guarantee that the counterparty has enough limit to trade.
The solution also allowed for a worldwide deployment is done (Paris, NY and London) with GigaSpaces asynchronous replication between each site. All requests are executed via the GigaSpaces platform, and all reservations, limits and client are stored in the platform as well.
Instant Payments for Real-Time Transactions
Instant Payments for Real-Time Transactions
Customer
This financial institution is one of the top 10 largest global banks by assets and is a network of cooperative and mutual banks, with a customer-focus banking model.
Business Challenge
In line with regulations and their focus on a positive customer experience, this bank required an instant payment service to process payment transactions in real-time and ensure the highest levels of reliability. They also needed to assure to scale capacity ahead of demand and employ sophisticated analytics to help prevent fraud and identify actionable insights from the data they collect.
- Accelerate instant payment solutions and meet regulatory requirements on a global scale and enhance the customer experience
- Assure automatic fraud detection
- Automatically track purchases and other server-to-server communication in real time
- Store payment transactions, order information, and other sales internally
Technical Challenge
- Ability to handle growing data volumes of 15k payment/sec receipts introduced by the management of new SEPA European payment regulation
- Assure no-downtime for mission-critical service
Solution
With GigaSpacesโ in-memory real-time analytics platform, this customer was able to develop and deploy an instant payment solution that meets regulatory requirements on a global scale, handling thousands of payments/sec. Each payment transaction is executed in 500 milliseconds with end-to-end validation, including fraud analysis and others, within seconds. The solution meets mission-critical applications requirements such as high availability and fast recovery.
Fraud and Money Laundering Detection in Real-Time
Fraud and Money Laundering Detection in Real-Time
Customer
This company is a leader in fraud prevention and risk management. They provide financial institutions and customers with fraud and risk management tools, facilitate a secure exchange between financial organizations and offer solutions for responding quickly to evolving fraud challenges.
Business Challenge
This customer was looking for a solution to detect fraud in real-time for mobile payments and check deposits. They required high-availability to assure 24X7 access for demanding customers. Reducing their current TCO was also a priority.
- Detecting fraud on mobile payment applications in real-time
- Detecting the deposit of the same check-in multiple accounts at different banks in real-time
- User experience: application availability 24ร7
- TCO reduction: reduce dependency on expensive RDBMS
Technical Challenge
- Required ingestion of 4 TB of data daily
- Support of fully consistency for transactional in-memory map-reduce
- Millisecond response
- Ability to analyze and validate against a large dataset of live (multiple TB) in memory and archived data (to Cassandra NoSQL and Hadoop)
Solution
The GigaSpaces in-memory real-time analytics platform provides sub-second response for accurate fraud detection to stop the transaction before it is completed. The high-performance solution ingests 4 TB daily and handles over 1.5M events per second. TCO was reduced when introducing RAM and SSD, replacing expensive alternatives. No-Downtime is assured with a fault-tolerant, highly available, scaling on-demand solution.
Post-Trade Processing
Post-Trade Processing
Customer
This financial services company provides wealth management, asset management, and investment banking services for private, corporate, and institutional clients worldwide. They have trillions of invested assets and area leading provider of retail banking and commercial banking services, operating in more than 50 countries.
Business Challenge
This customer was looking to provide large-scale post-trade processing in real-time. They needed to enforce data quality and consistency along with simplifying integrations between network components for a Risk Result Store for Investment Banking supporting ~60 million events created per day supporting over 40 applications.
Technical Challenge
- Ingest, transform and process data within minutes to meet regulations
- Ability to run analytic queries on both historical and real-time data
- Event-triggered architecture for triggering analytics and business processes
Solution
The GigaSpaces in-memory real-time analytics platform provides the necessary high-throughput data ingestion and analytics; federating analytic queries across many data stores (IMDG, Oracle). The solution supports ~5M reported and reconciled trades per day; ~1M risk exceptions are assessed per day; and over 40 applications access and analyze this single source of truth.
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