Blockchain, Artificial Intelligence &
Quantum Computing
(FIN4721)
Session 7
Mid-Term Exam & API Banking
Professor Sarat Mohanty
Sep-2022
Lesson overview
1.LearningHave
you
downloaded
the
assessment
file
in
your
objectives
laptop?
2.
Start time is 6.45pm
3.
End time is 7.45pm
4.
Answer upload deadline is 8.45pm
Lesson overview
Learning objectives
Topics
- Group project brief
- Mid-Term Student Survey Brief
*************************************************
API Banking
*************************************************
Lesson overview
Learning objectives
Group Project
Clarifications/Questions/Issues
Lesson overview
THE API BANKING
@
FINANCIAL INSTITUTIONS
API VIDEO
Lesson overview
https://youtu.be/r8DRt7wORHE
API BANKING
Lesson overview
What is Application Programming Interface (API) In Banking
API Benefits
In Financial Institutions, APIs are becoming a common method of data exchange to facilitate a realtime banking transaction 1) between customer & Bank, 2) between Bank to Bank, 3) between Bank &
3rd party platforms, 4) between Bank & regulators. Banks are opening up the access to their systems
by external partners.
Speed & Efficiency:
Products & Services Offered In API Banking
Industry Standard:
Foreign Exchange
Buy & Sell
Cash
Payments & Collection
API Connectivity
Real-Time
Bank Balance
API Connectivity
Bank Reconciliation
Data
Transaction
Status
API integration allows data or
instructions to be executed on a
real-time basis
Customer/FIs/3rd Party
platform/Regulators all on a single
integration architecture facilitates
synchronised transaction processing
Productivity:
Eliminates IT setup, maintenance &
monitoring activities.
API Connectivity
Improved IT ROI:
Reduced IT investment on different
integration needs. Supports cloud
computing strategy on cost
reduction.
Financial Institutions
Government Agencies
Customer Ecosystem
Financing Platforms
What is API?
• Application Programming Interface
• RPC (XML, JSON)
• REST (Representational State Transfer)
• SOAP (Simple Object Access Protocol)
• Query, Aggregation, etc.
• REST is an architectural style API where messages are sent in a single direction.
• SOAP is a messaging language that allows for two-way communication.
• REST and SOAP provide different benefits to businesses, such as scalability, security, and
data transmission efficiency. However, integrating a banking app or website with an API is
easy and quick–making it simple for businesses to take advantage of all the benefits these
platforms have to offer!
API and Banking
• Convenience, Customization
• Private, Partner, Open / Public API
• Regulators, Third party companies, FinTech
• Data Aggregation
• Payments
• Value Added Services
Bank Mobile / Internet
Apps
Fintech Apps
API Layer
Bank
Customer
Data
Open, Partner & Private API
Open API
•
•
Open/Public APIs are publicly available for anyone to use. Out of all the types of API, these are the most commonly used API types. Some of
them may require the developer to register to obtain an OAuth or an API key to use the API. Otherwise, they are entirely open.
The publisher controls which data or content is exposed, and they typically expose content available publicly and not copyrighted. Museum,
Library etc. use Public APIs which allow their users to access their information from other applications.
Partner API
•
•
•
•
The second types of API in our article is Partner APIs. Partner APIs are APIs used to communicate between two strategic business partners.
Most companies have public APIs that their partners can connect to easily. However, there could also be situations where the partners are
sharing sensitive data among them, requiring the access to the API to be restricted. Most of the time the API owners take care of access
management. But they can also involve a third-party API gateway to do the access management job.
These types of API almost always perform a specific task.
Partner APIs provide value addition for a business as well as an upsell, thus making it a must-have for many businesses.
Private API
• Private APIS are used within one organization. Companies that develop multiple products use these types of API widely to communicate with
their own different products. For example, in a bank, customer channel platform system communicates with its core banking system via APIs.
• Internal APIs use custom business logics which are unique to that business. Even though they are used internally, they are still vulnerable to
attacks. This can be overcome by exposing them to an internal API developer portal, which connects to an internal IAM system to
authenticate users, and ensure they have access to the correct set of APIs.
Design and Architecture
Internet
• Content Delivery Networks (CDN)
• Firewalls
• API Gateways
• Aggregator services
• Microservices
• Event Streaming /Message Queues
• Core Banking and Databases
CDN
Firewalls , Webservers
API Gateway
Aggregator Svc
Demilitarized
Zones
Internal
Network
Microservices
Microservices
Event Streaming/
Message Queues
Core Banking
Databases
Security and Compliance
• Certificates, Mutual TLS
• Authentication and Authorization (OAuth, JWT, etc.)
• Penetration Testing
• Privacy Impact Assessments
• Regional and Group Compliance
Mutual transport layer security(TLS), is a method for mutual authentication. This
ensures that the parties at each end of a network verify using the correct
private key.
OAuth / JWT let application developers securely get access to your users' data
without sharing their passwords.
Scalability and Observability
• Cloud hosting
• Scalability
• Availability zones (Compliances)
• Monitoring and Observability
• Managing Upgrades
OBSERVABILITY
Metrics
Tracing
Monitoring
Logging
Monetizing API
• Licensing / Subscription revenue
• Transaction fees
• Revenue sharing with partners
• Revenue from services or products (Payment channels, Loan
origination, KYC)
Blockchain, Artificial Intelligence &
Quantum Computing
(FIN4721)
Session 8
Quantum Computing
Professor Sarat Mohanty
Oct-2022
Lesson overview
Learning objectives
Topics
- Recap last class
- Group project, presentation template
- Introduction to Quantum Computing
*************************************************
Guest Speaker – Mr. Subrat Kumar Kanungo, Kyndryl, IBM India
****************************************************************
Recapoverview
of last
Lesson
class - API Banking
1. Client server model ver API model
Internet
2. RESTobjectives
& SOAP
Learning
CDN
3. Public API, private API & Partner API
4. Content Delivery Networks (CDN)
5. Firewalls & API Gateways
6. Aggregator services
7. Microservices
8. Event Streaming /Message Queues
9. Core Banking and Databases
Firewalls , Webservers
API Gateway
Aggregator Svc
Demilitarized
Zones
Internal
Network
Microservices
Microservices
Event Streaming/
Message Queues
Core Banking
Databases
10.Monetization of APIs (Licensing / Subscription revenue/Transaction fees/Revenue sharing with partners/Revenue
from services or products (Payment channels, Loan origination, KYC)
Lesson overview
Learning objectives
Group Project –
Important Information
Total allotted group presentation time – 30min (changed
from 20 min)
Actual Presentation Time: 20 min
Q&A, Feedback/Challenge Time: 10 min
Submission deadline:
1. Submission deadline – 2 Nov, 6pm, section A1
2. Submission deadline – 3 Nov, 6pm, section A2
Point Weightage:
1. 60% on presentation
2. 40% on challenge, & constructive feedback to other groups
Submission Instructions
1. File Name: Section No+Group No.ppt (example: A1-Group 1.ppt)
2. Submission Folder: LumiNUS→Files→Group Project
Groups will be split into 2 sessions
st
Group schedule will be announced during class 11(1
nd
session of group presentation), 2 Nov – Section A1,
rd
3 Nov – Section A2
Feedback/challenge group number will be announced
just before the start of the presentation.
Lesson overview
Learning objectives
Group Project –
Presentation Template
Cover Slide
Digital Banking Transformation - Group Project
Group No:
Group Members (Name & ID):
a. Current state
b. Legacy systems,
manual operations,
longer lead-time &
threat of Fintechs etc.
c. External demand
(customer, regulator
etc.)
No of slides: 1
a. New digital trend,
adoption of new
technologies, changing of
banking landscape i.e.
Fintech/AI/Blockchain etc,
b. External changes
(customer, regulator,
industry etc.)
No of slides: 3
No of slides: 3
a. Cloud computing, API
Banking, Blockchain,
AI/IoT/ML, DeFi, Fintech
Collaboration models
etc.
b. Meeting customer’s
digital expectations,
automating internal
processes & safe
guarding Cyber
threats/AML/Fraud
a. Transition path for the
bank over 3-5
years(new talent, new
technology, change
management etc.)
b. Risks, challenges & how
to overcome them?
No of slides: 2
a. Why should bank
implement your
proposal?
No of slides: 1
Introduction to
Quantum Computing
Video
Video recap
1. Problems that can take upto billion year to solve by normal computers
2. You can solve these problem in seconds by quantum computer
3. Rotating Donut
4. Industries i.e. medical, supply chain etc
5. Superconductors, IBM & Google
6. Chandelier to cool down the quantum chip
7. Breaking the complex encryption faster
8. Complex AI algorithms
9. We are not there yet, waiting for the powerful quantum computer to arrive to do all the above
What is Quantum Computing
Conventional computing relies on the principles called “Boolean algebra”; usually Operates with a 3 or 7-mode logic
gate principle. In conventional computing, data must be processed in an exclusive binary state at any point in time; either 0
(off / false) or 1 (on / true) . Classical computers store data in memory and process stored data with simple mathematical
operations i.e. add & subtract. Storage and processing task is performed using switches called transistors, which are like
microscopic versions of the switches you have on your wall for turning on and off the lights. A transistor can either be on
or off, just as a light can either be lit or unlit. If it's on, we can use a transistor to store a number one (1); if it's off, it
stores a number zero (0). More complex processing is performed by stringing together the simple operations into a series
called an algorithm .
Quantum computing is the new generation high processing computer system that uses the principles of quantum theory of
energy and material on the atomic and subatomic levels. Quantum computing uses subatomic particles, such as electrons
or photons. Quantum computing uses Quantum bits, or QUBIT that allows these particles to exist in more than one state
(i.e., 1 and 0) at the same time. In physics, a quantum is the smallest possible unit of any physical property. It usually refers
to properties of atomic or subatomic particles, such as electrons, neutrinos, and photons.
A QUBIT is the basic unit of information in quantum computing. Qubit plays a similar role in quantum computing as bits
play in conventional computing, but they behave very differently. Classical bits are binary and can hold only a position of 0
or 1, but qubit can hold 1,0 or 1 and 0 simultaneously with overlapping(superposition) and intertwining(entanglement) as
per the law of physics. In another words, they’re both on and off at the same time, or somewhere on a spectrum between
the two.
Superposition & Entanglement
Superposition
In superposition, quantum particles are a combination of
all possible states. They fluctuate until they're observed
and measured. One way to picture the difference between
binary position and superposition is to imagine a coin.
Classical bits are measured by "flipping the coin" and
getting heads or tails. However, if you were able to look at
a coin and see both heads and tails at the same time, as
well as every state in between, the coin would be in
superposition.
Entanglement
Entanglement is the ability of quantum particles to correlate their
measurement results with each other. When qubits are entangled,
they form a single system and influence each other. We can use
the measurements from one qubit to draw conclusions about the
others. By adding and entangling more qubits in a system,
quantum computers can calculate exponentially more information
and solve more complicated problems.
3 Lesson
STEPoverview
APPROACH OF QUANTUM COMPUTING
Area that holds QBITS
• For some methods of qubits storage, the unit that houses the qubits is kept
at a temperature just above absolute zero to maximize their coherence and
reduce interference. Other types of qubit housing use a vacuum chamber
to help minimize vibrations and stabilize the qubits.
Method to transfer signals to QUBITS
• Signals can be sent to the qubits using a variety of methods, including
microwaves, laser, and voltage.
Conventional computer to run a program
and send instructions
Why Quantum computing
The amount of data being created every day is gigantic – and current computers will not be able to keep pace for
much longer. Modern super computers are still too slow to perform some of the most important scientific
tasks like testing the effects of new medicines at the molecular level. With the ability to perform very complicated
calculations more quickly, or to even model those drugs at the molecular level, quantum computers provide a
much-needed performance boost. Most data scientists agree that quantum computers are our best chance to deal
with the challenges of the 21st Century.
Quantum computing and AI
Another hot-topic is artificial intelligence. In its current most well-known implementations, artificial intelligence runs
on vast servers, utilizing trillions of binary bits to run extremely complex neural networks and other AI algorithms. A
large resource that many facets of AI rely on is parallel computing, which future quantum computers will be
significantly better geared for doing than future binary machines. This does not mean that all AI will live only on
quantum computers, but rather that the most complex workloads within large AI algorithms could be handled by
quantum computers supplementing other core functions of binary-based workloads.
Industry application of quantum computing
Industry
Healthcare
Area
Description
Research/diagnostic/
treatment
1. Quantum computers will allow much larger molecules to be simulated. Researchers will be able to model and simulate
interactions between drugs and all 20,000+ proteins encoded in the human genome, leading to greater advancements in
pharmacology.
2. To provide faster, more accurate diagnostics with a variety of applications. Boosting AI capabilities will improve machine
learning – something that is already being used to aid pattern recognition. High-resolution MRI machines will provide greater
levels of detail and also aid clinicians with screening for diseases.
3. Certain treatments, such as radiotherapy, depend upon the ability to rapidly model and simulate complex scenarios to deliver
the optimal treatment. Quantum computers would enable therapists to run more simulations in less time, helping to minimise
radiation damage to healthy tissue.
Finance
Fraud
detection/algorithmic
trading
1. The use of complex algorithms to automatically trigger share dealings based on a wide variety of market variables. The
advantages, especially for high-volume transactions, are significant.
2. Like diagnostics in healthcare, fraud detection is reliant upon pattern recognition. Quantum computers could deliver a
significant improvement in machine learning capabilities; dramatically reducing the time taken to train a neural network and
improving the detection rate.
Marketing
Big data analysis
1. Big data analytics using quantum computing method will allow commerce and government to precisely target individual
consumers, or voters, with communications tailored to their preferences; helping to influence consumer spending and the
outcome of elections.
Logistics
Supply chain
efficiency
Weather forecast
1. Improved data analysis and modelling will enable a wide range of industries to optimise workflows associated with transport,
logistics and supply-chain management. The calculation and recalculation of optimal routes could impact on applications as
diverse as traffic management, fleet operations, air traffic control, freight and distribution.
Meteorology
1. With so many variables to consider, accurate weather forecasts are difficult to produce. Machine learning using quantum
computers will result in improved pattern recognition, making it easier to predict extreme weather events and potentially
saving thousands of lives a year. Climatologists will also be able to generate and analyse more detailed climate models;
proving greater insight into climate change and how we can mitigate its negative impact.
Quantum Computing & Financial Services
1. Financial institutions that can harness quantum computing are likely to see significant benefits.
2. Especially, they will be able to more effectively analyze large unstructured data sets.
3. Sharper insights into these domains could help banks make better decisions and improve customer service, for
example through timelier or more relevant offers (perhaps a mortgage based on browsing history). There are equally
powerful use cases in capital markets, corporate finance, portfolio management, and encryption-related activities.
4. In an increasingly commoditized environment, this can be a route to real competitive advantage.
5. Quantum computers are particularly promising where algorithms are powered by live data streams, such as real-time
equity prices, which carry a high level of random noise.
6. Real-time experience dealing with significant data size can be made possible while delivering AI/Blockchain outcomes
References used:
1.
2.
3.
4.
Microsoft.com
IBM.com
Bbva.com
McKinsey.com
Blockchain, Artificial Intelligence &
Quantum Computing
(FIN4721)
Session 9
Compliance/Fraud/Cybersecurity/Anti Money laundering
Professor Sarat Mohanty
Oct-2022
Lesson overview
Learning objectives
Topics
- Recap last class
- Group project, discussion points
- Digital compliance, Fraud, AML
*************************************************
Guest Speaker – Mr. Sheetal Kumar, DBS Singapore
****************************************************************
Lesson overview
Learning objectives
Group Project
Recap - Quantum Computing
Quantum Computing is derived from the Quantum
theory of physics (atoms & sub-atoms)
In superposition, quantum
particles are a combination of
all possible states. They
fluctuate until they're
observed and measured.
Superposition
A QUBIT is the basic unit of information in quantum
computing. Qubit plays a similar role in quantum
computing as bits play in conventional computing,
but they behave very differently. Classical bits are
binary and can hold only a position of 0 or 1, but
qubit can hold 1,0 or 1 and 0 simultaneously with
overlapping(superposition) and
intertwining(entanglement) as per the law of
physics. In another words, they’re both on and off
at the same time, or somewhere on a spectrum
between the two.
Entanglement
Entanglement is the ability of
quantum particles to correlate
their measurement results with
each other. When qubits are
entangled, they form a single
system and influence each
other. By adding and entangling
more qubits in a system,
quantum computers can
calculate exponentially more
information and solve more
complicated problems.
Lesson overview
DIGITAL
COMPLIANCE @ FINANCIAL
INSTITUTIONS
Lesson overview
Customer
Facing
DIGITAL
COMPLIANCE
Digital
Banking
@ FI
Bank’s
Internal
Processes
covers these 2 areas
Regulatory
& Social
Governance
DIGITAL COMPLIANCE VIDEO
Lesson overview
Learning objectives
VIDEO RECAP
Lesson overview
1. 2 out of 3 top issues for banks are: Digital Transformation & Regulation
2. Banks needed to be safe
Learning objectives
eg: compliance function
3. Tens of thousands of people in middle office doing manual work around DATA (processing, cleansing, duplication)
4. Huge cost to serve
5. Throwing loads of people doesn’t help, let’s automate……………Regulatory Technology or REGTECH
6. Delivering a better customer experience whilst dealing with compliance
7. Regulation & technology intersects………….
CONSEQUENCES OF WEAK COMPLIANCE
Lesson overview
UNDERSTANDING REGULATIONS ACROSS BORDERS
Lesson overview
Banking Regulated Activity
•
•
•
•
eg: license to do corporate/retail/investment
Licensing and Marketing
banking from MAS. Only do marketing for these
Data and Outsourcing
products
Conduct and Conflict of Interest
Money Laundering, Sanctions & Bribery & Corruption risk
Enforcement
• Permissible, partially or not allowed
• Higher scrutiny and monitoring eg: high risk countries
• Risk appetite
Control Measures
•
•
•
•
Currency and conversion rules
Export and Import restrictions & approval
Mandated documents
Monitoring and reporting of inflow and outflow
eg: suspiciously large amount of inflow
KEY CHALLENGES TODAY 1/2
Lesson overview
Top 10 challenges today for banks
1.Cyber Security
2.Anti Money Laundering
3.Financial crime & Terrorist Financing
4.Fraudulent Transaction
5.Staff conduct
6.Sanction breach
7. Manual process
8. Shortage of good staff
9. In-adequate investment in automation
10. Digital threat (external)
KEY CHALLENGES TODAY 2/2
Lesson overview
single data source
1. Fragmented data across compliance functions and lines of businesses. Without a “golden source,” it is difficult for
banks to process and analyze the required data for compliance and oversight.
2. Lack of an enterprise-wide single customer view. A single customer’s multiple relationships residing in multiple systems
of the bank causes a challenge in holistic monitoring and analysis of customer behavior.
incorrect alerts
3. High volume of false positive alerts in AML and fraud control. In the range of 90 percent or more for most large banks
globally, this is one of the key pain points caused due to usage of legacy rule-based detection systems. This also exposes
banks to slippages on true alerts, which is a compliance violation.
4. Manual, effort-intensive processes, like KYC activities and alert investigations. These activities are time-consuming,
error-prone and costly, and they constitute a bulk of the compliance function in banks.
5. Legacy systems are incapable of combining structured and unstructured data. Unstructured data holds a huge amount
of hidden information about customer behavior. Emails, chats, web and social media clips of customers, if analyzed in the
right context, can generate early warning signals of suspicious behavior.
https://www.corporatecomplianceinsights.com/emerging-technologies-banking-compliance/
RISK MANAGEMENT FRAMEWORK
Lesson overview
Controls
Enablers
Client due diligence
CDD & KYC
Assurance
Sanctions compliance
Risk assessment
Surveillance
Learning
pro-active (using AI/ML)
Anti-bribery & corruption
Resources
Governance
Information & reporting
INTRODUCTION TO DIGITAL COMPLIANCE
Lesson overview
eg: companies with many legal entities
Analytics-based entity resolution can generate a single view of a customer maintaining multiple identities
and relationships across the bank, without having to overhaul any of the bank’s disparate legacy systems
holding the customer data. Sophisticated analytics are used for such matching, sometimes augmenting the
bank’s data with that of external third-party data to arrive at accurate matches.
AI-based network and linkage analysis is becoming an increasingly important tool for banks to identify
hidden relationships and networks through which financial crimes might be committed. Banks are using such
tools to generate insights on suspicious hidden relationships and criminal networks. These tools link the data
available in the bank – including unstructured customer data in the form of mails and chats – with the data
available in external sources, including social media, to unearth suspicious networks. Such networks can
then be red flagged by the bank and subjected to greater scrutiny for detecting financial crimes.
Machine Learning (ML) based platforms in optimizing alerts and reducing false positives. These platforms
have already delivered great results in financial crimes detection and investigation. ML-based alert generation
solutions can discover suspicious behavior leading to money laundering and fraud and can detect outliers
even when they do not breach any defined alert triggering scenario – something rule-based platforms are
incapable of. Some banks are also using ML tools to automatically discount false alerts generated by the
rule-based systems using dynamic rules created by the ML algorithm.
DIGITAL BANKING PAYABLE FINANCING
Lesson overview
Automated ID and document verification Using mobile image processing with deep-convolution biometric
face matching, automated ID and document verification tools are enabling straight-through processing of
KYC. After installing these applications in their phones, customers can operate them directly to upload ID
documents and selfie videos as part of KYC during onboarding, as well as during periodic and ad-hoc
reviews.
Biometrics and computer vision technology for fraud prevention. These solutions are gathering momentum,
even as online and card fraud continues to increase. Multi-factor authentication, using the customer’s
fingerprint, face or iris scan, voice or keyboard dynamics is being enabled in various payment channels, as
such inherent customer biometrics can be very difficult to steal or replicate and can help prevent payment
fraud. Machines’ speech and visual recognition capability is steadily improving, and it is expected to exceed
that of humans in the next few years!
Robotic process automation (RPA) in KYC and AML functions like onboarding, alerts and case management
are fast becoming the norm in FIs. The software robots are programmed to mimic human steps, which are
repetitive and rule-based, and can complete tasks involving accessing multiple systems, data entry and
collation, report generation and so on – just like humans, but at a fraction of the time and cost. Standard
Bank, Africa’s largest bank, has used RPA combined with AI-based cognitive automation to bring down the
client on-boarding and KYC timelines from 20 days to five minutes!
DIGITAL COMPLIANCE
Lesson overview
https://boston-consulting-group-brightspot.s3.amazonaws.com/img-src/BCG-Transforming-Bank-Compliance-with-Smart-Technologies-July-2017-2_tcm9-164957.pdf
REAL LIFE CASE STUDY – IMPORT INVOICE FINANCING
Lesson overview
Customer
Submits Docs
For financing of 5
mio USD Invoices
1.
2.
3.
4.
5.
Copy of invoice
Copy of packing list
Copy of customs clearance
Copy of purchase order
Copy of Bill of lading
Name Screening
(Various Systems,
Automatic &
Manual)
1.
2.
3.
4.
Sanction check
Terrorist check
PEP check
Adverse Media Check
Trade Operations
Validated Docs
(manual)
1.
2.
3.
4.
Suspicious/Alerts/
Investigation
(System +
Manual)
Trade Operations
Creates financing
request
(System)
Transaction
Screening
(Various System)
Automatic &
Manual)
Checks PO ver Invoice for product/qty/price etc
Checks market price for under or over valuation
Logs in to customs portal to verify packing list as per Bill of lading
Validated if the container was off-loaded and re-loaded with other goods etc?
1.
2.
3.
4.
1.
2.
3.
4.
Interacts with customer
Interacts with various authorities
Physical verification at customer warehouse if reqd.
Reporting to authority
Importer’s entity name, biz activity
Exporter’s entity name, biz activity, Bank details
Authorised person name screening
Validated if the container was off-loaded and re-loaded with other goods etc?
Financing
Approved/Rejected
(System)
FINTECH VIEW OF IMPORT INVOICE FINANCING COMPLIANCE FLOW
Lesson overview
manual system vs automated system
Importer &
Exporter
Customer
Submits Docs
For financing of 5
mio USD Invoices
1.
2.
3.
4.
5.
API
Copy of invoice
Copy of packing list
Copy of customs clearance
Copy of purchase order
Copy of Bill of lading
Data Collection
Platform/Fintech
(automatic &
exceptions)
Data Analysis
Platform/Fintech
(automatic &
exceptions)
1. OCR tool
2. Voice & speech
recognition tool
3. Image & facial
recognition
Multi Country
Suppliers
1. Data Mining
2. Case based
reasoning
3. Rule based
expert system
Fintech
/3rd Party
Platform
Learning
Platform/Fintech
(automatic &
exceptions)
1.
2.
3.
4.
5.
Supervised learning
Unsupervised learning
Reinforcement learning
Deep learning
Recommender system
API
Bank 1
Action
Platform/Fintech
(automatic &
exceptions)
1.
2.
3.
4.
5.
6.
7.
Natural-language understanding
Natural language generation
Speech synthesis
Machine translation
Sentiment analysis
Business process management
RPA
Bank
Transaction
Processing
LEADING FINTECH PLATFORMS IN DIGITAL COMPLIANCE
Lesson overview
helps government agencies,
cryptocurrency businesses, and
financial institutions engage
confidently with cryptocurrency.
AI-Driven Risk Database Of Watchlists,
PEPs & Adverse Media. Learn More.
Monitor Customer Behaviour & Financial
Crime Risk In Real Time.
Regulatory Knowledge Automation
platform generates a complete set of
obligations targeted to your business,
and keeps them up-to-date
automatically.
offers unmatched fraud
prevention and protection with
real-time automated decisions
for all transactions.
is a modern platform for
managing compliance teams.
We
make compliance investigations
agile, lightweight, and intelligent.
The only data privacy platform
your business will ever need.
GDPR. CCPA. LGPD. ... For Data
Privacy compliance with every
regulation in the world.
world's first end-to-end
intelligent compliance platform. We
want to change organisations'
attitudes to compliance, making it a
proactive strength
is a behavioral biometrics
company providing continuous
authentication for end users
based on their interactions with
web and mobile apps.
Fraud prevention solutions that
enable your business to innovate &
grow without increased risk. Protect
your customers and commerce
with Sift fraud
Lesson overview
GUEST SPEAKER
MR. SHEETAL KUMAR
DBS BANK
Blockchain, Artificial Intelligence &
Quantum Computing
(FIN4721)
Session 10
Cloud Computing
Professor Sarat Mohanty
Oct-2022
Lesson overview
Learning objectives
Topics
- Recap last class
- Group project, discussion points
- Cloud Computing
*************************************************
Guest Speaker – Mr. Jayanth Rao, AWS, Singapore
****************************************************************
Lesson overview
Learning objectives
Group Project
Introduction to cloud computing
Cloud computing is a method of
providing a set of shared computing
resources that includes applications,
computing, storage, networking,
development, and deployment
platforms as well as business
processes under pay-as-you-go model.
Cloud computing turns traditional siloed
computing assets into shared pools of
resources that are based on an
underlying Internet foundation.
Parameter
On-Premise
Upfront high investment
Cost
Resource deployment In-house resources
Security
Complete control on
security
In-house compliance
Compliance
Scalability & Flexibility Less flexible due to
Cloud
Pay as you go
3rd party resources
deployment
Loss of control &
authority on
Shared compliance model
Scalability is higher
physical servers etc
4
Cloud computing delivery models
IaaS
PaaS
SaaS
Infrastructure as a Service
(Hardware, software, storage, data centre space, networking)
Platform as a Service
(Supplies an on-demand environment for developing, testing, delivering, and managing software applications.
PaaS is designed to make it easier for developers to quickly create web or mobile apps)
Software as a Service
(Method for delivering software applications over the internet, on demand, and typically on a subscription basis.
Hosts & manages the software application and underlying infrastructure)
5
Delivery channel Intersection
SaaS
PaaS
IaaS
Hosted
application
Development tools,
database management,
business analytics
Operating systems
Servers & storage
Networking firewalls/security
Data centre physical
plant/building
6
Types of Cloud Computing
Public cloud is cloud computing that’s delivered via
the internet and shared across organizations.
Private cloud is cloud computing that is dedicated
solely to your organization.
Hybrid cloud is any environment that uses both public
and private clouds.
TCO = total cost of ownership
Cloud Computing adoption
Enterprises have
dramatically increased
their use of cloud in the
last two years and cloud
has emerged as a
positive force for change
- but there are still
barriers to adoption
>50%
>60%
50%
of customers increased their
usage of cloud as a result of
the pandemic with 92%
accelerating faster than
anticipated1
of customers plan further
increases over the next 1224 months1
will delay migration to
cloud due to lack of
insufficient cloud IaaS
skills.2
1. https://blogs.microsoft.com/wp-content/uploads/prod/2022/01/Microsoft-Cloud-Survey-Results-Final.pdf
2. https://www.gartner.com/smarterwithgartner/4-trends-impacting-cloud-adoption-in-2020
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Delivering Value
Enabling digitalization introduces multiple converging challenges to IT.
New business models
Expected business benefits
Shadow IT
Cost efficiencies
Security threats
Always-on and resilience
Digitalization impacts
Cyber resilience
IT transparency
Business influence on IT
Regulatory shifts
Market forces
Data privacy
Consumerization of IT
IT mobility
Social computing
IT drivers
IT as business innovator
Delivery velocity
Tech-savvy users
Mergers and acquisitions
IT versatility
DevSecOps
Globalization
Age pyramid
Big data and AI
Cloud sourcing
Technology disruptors
IT Leadership
Skill shortages
Workplace dynamics
9
Examine through Cloud-Centric lens
Transformation journey through Core Cloud infrastructure, Hyperscaler, Multi-Cloud, and Hybrid IT environments
Applications
– Custom, packaged applications
– Microservices e.g., booking
engine, card processing
Application-specific infrastructure
(e.g.)
– Azure VM, Azure SQL DB
– AWS Lambda, AWS EC2, AWS
Dynamo DB
Cloud Platform / Shared
infrastructure (e.g.)
– Azure AD, AWS Control Tower,
Kubernetes, Subscription and
Logging
– Amazon EKS, Azure AKS, Google
GKE, VMware Tanzu, Red Hat
OpenShift
10
Guide and Accelerate Cloud Transformation journey
IT Consulting
(Industry)
Digital Strategy
and Experience
IT Consulting
(General)
Dynamic
Architecture &
Technology
Capabilities are supported by
quality software assets and
tools.
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Experience with Cloud Adoption Framework (Typical)
Envision, Align, Launch and Scale - Application Workloads
Capabilities aligned to Cloud Adoption Framework
Business
People
Governance
Align business and IT needs to accelerate your
digital transformation with a trusted baseline to
make fact-based decisions. Define your
transformation journey tying roadmap goals to your
business value.
Accelerate your cloud journey by leveraging a
technology partner organisation (preferably internal)
to provide structure and leadership that helps you
more rapidly evolve to a culture of continuous
growth and learning where change becomes
business-as-normal.
Optimise service adoption and existing investments
while evaluating business outcomes and minimizing
transformation-related risks.
Platform
Security
Operations
Build an enterprise-grade, scalable, hybrid cloud
platform, modernize existing workloads, and
implement new cloud-native solutions. Embed
infrastructure as code (IaC) into your landing zone
design.
Design landing zones and their guardrails to achieve
the confidentiality, integrity, and availability of your
data and cloud workloads.
Assess maturity and apply modern operations best
practices to optimize results. Ensure that your cloud
services are delivered at a level that meets the
needs of your business.
12
Cloud Adoption Framework Action Plan (An Example)
Business
Baseline
consumption based
budget
Tax impact on CapEx
to OpEx
Strategy Guidance on
Cloud Decisioning
Framework
AWS Compliance
Certification
Certification against
Compliance
Chargeback
framework
People
Cloud roles
requirement
Cloud license
strategy & options
Pay differentials
between old and
new role
Cloud skills
assessment
Cloud training &
Certifications
Organization change
management
framework
Governance
Agile project
management
capabilities
Cloud license
management
How cloud impacts
current Scorecard
Update Scorecard with
business metrics &
KPI
Cloud decision
framework
Platform
Cloud Architect
Patterns
CI/CD options &
designs
Auto resourcing
provisioning
Approved
development tools
list
Evaluate Cloud ML,
AI tools against
existing
Security
Cloud SSO options
Update existing
policy to reflect
Cloud options
Cloud HSM options
ILP tools for the
cloud
Cloud Control
equivalency
Operations
Application
inventory tools
Cloud Automation
options & techniques
Cloud services to
improve BC/DR
Cloud audit tools and
improvements on
existing
Cloud Operation
model
13
Platform – Assessment of Application Architecture
(An Example)
Application
Feature
Application Classification
Cloud Architecture BOM
BI Application
Cloud
Technology
Stateless Application
Data
Processing
Technology
Public Facing
Integration
Infrastructure
Application/
Endpoints
Platform
Technology
Stateful
Application
Tier Application
Enterprise
Mobile Application
Standard
Marketplace Platform
POC
eCommerce portal
14
14
Platform – Assessment Data Architecture
Transaction
Data
Sales
Data
Master
Data
Transform
Customer Data
Vendor
Information
Consolidate
Review
Financial
Data
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Hybrid and Multi-Cloud means multi-front challenges
Managing the existing IT
estate and the complexities of
a hybrid, multi-cloud
landscape
Integration and data
management requirements
across the landscape
Expanding and changing
security, compliance and
resiliency requirements
Governance across the
expanded ecosystem
16
Convert challenges to opportunities. Accelerate the
Cloud Journey
Modern Automation, Intelligence and Operations Service
Advisory Services
Public Cloud
Services
Azure
Service
Amazon
Service
GCP
Service
Implementation, Modernization & Design of Public Cloud
Private Cloud
Services
Private
Cloud IaaS
/ PaaS
Multi-tenant
IaaS / PaaS
1. Integrated building block approach
minimize risk & improve success
2. Security is at the forefront of every
engagement.
3. Modern automation and Advanced
Delivery In Operations, Management, and
Governance.
Mgmt
Services for
Private
Cloud
Implementation, Modernization & Design of Private Cloud
Traditional Distributed Server & Storage Managed Services
Hybrid and Multi Cloud Services
17
Lesson overview
GUEST SPEAKER
MR. JAYANTH RAO
AWS, SINGAPORE