Why should financial institutions go the extra mile and leverage modern cloud-based data analytics software?
Managing Big Data on a daily basis is a continuous juggling act for Financial Institutions. Whether you are a bank dealing with controlling liquidity and credit risks, an asset manager wanting to gain valuable insights from pre- and post-trading analytics, or a firm overwhelmed with ESG data, managing immense amounts of information can represent a daily challenge. When it comes to storing big data, firms have been keeping on top of operational burdens by outsourcing their infrastructure requirements and migrating at least some of their data management operations to the cloud. This trend is set to accelerate as data volumes increase further and a lot of companies are on the second or third phase of this cloud migration. Now it makes sense for banks and asset managers to take one step further and embrace the future based on a software-as-a-service (SaaS) model.
Cloud migration has been a well-documented trend in the industry for the buy- and sell-side alike. Firms benefit from the agility involved with running more flexible business models and increased scalability and integration. Performance is enhanced through operating efficiencies and reduced "time to benefit" because the software is already installed and configured. In addition, the costs for hardware and software licences are typically lower compared with the traditional model.
To reap these benefits, it is important to take full advantage of the cloud’s capabilities through the implementation of software as well as infrastructure in the cloud. Overall, there are significant benefits for an organisation’s systems operations in key areas which free up IT departments. In terms of software upgrades, for example, valuable time can now be spent on other areas because the release management process of software upgrades is also outsourced. New features are pushed out on a single code base to all the clients and are immediately available to the users as soon as they log in. This improved time to market for release management is even more significant for new projects, where an entire implementation project may now be completed in days or weeks rather than months. As soon as data is available, users can immediately leverage the solution. We may add that, on top of it, in a low-code/no-code environment, the SaaS implementation approach empowers business users by reducing their dependence on IT not only for implementation and release but to make changes as well.
Managed SaaS services - specifically for financial service providers - have built their solutions to deal with the specific needs of the industry. Security concerns are critical in the Financial Industry and are dealt with directly by the providers. Modern technologies provide the level of security and encryption that is required by the financial institution to ensure the safety and privacy of their data. Anonymisation of counterparties in risk management and aggregation of sensitive results can be managed without any extra risk, especially in a single tenant setup but even in a multi-tenant environment.
DR (disaster recovery) plans can be facilitated by leveraging the multiple locations offered by Cloud providers. This focus on availability and security implies a very efficient environment monitoring and SLA management. This helps to unlock the full potential of Big Data in terms of working smarter.
As firms have taken the first step and migrated their data infrastructure to the cloud, they can now achieve even better ROI and reduce operational costs by going the extra mile and further migrating to cloud-based data analytics softwares.
Banks and asset managers can capitalise on access to their data, using it for regulatory reporting and business management purposes. Ultimately this enables them to become more competitive, while gaining agility and efficiency at an overall lower cost.
For all these reasons, technology providers like Opensee have been broadening the range of implementation options from on-premises to Cloud, and from fully managed by the client to a full SaaS. In doing so, Opensee helps Financial Institutions travel this extra mile very quickly and offers them its rich real-time self-service analytics functionalities.
For more in-depth information, Stéphane Rio, Founder & CEO, and Julie Louvrier, Senior Sales Executive at Opensee, have written an essential blog post that details the Big Data Journey.