Data Virtualization for Accelerated Digital Transformation in Banking and Finance (Australia)
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This document discusses a case study of a regional community bank that improved business process efficiency using a logical data warehouse from Denodo. The bank used Denodo to aggregate data from multiple cloud and on-premise sources, which it then used to power self-service reports, dashboards, and real-time operations. This improved reporting turnaround times from 2-3 days to 2 hours and allowed loan processing to be done in real-time. Denodo provided a centralized data platform that was flexible enough to easily incorporate new data sources from acquisitions.
Data Virtualization for Accelerated Digital Transformation in Banking and Finance (Australia)
- 1. Data Virtualization for Accelerated Digital Transformation in Banking and Finance Chris Day Director, APAC Sales Engineering cday@denodo.com FUTURE OF FINANCIAL SERVICES, SYDNEY 4 – 6 NOVEMBER 2020
- 2. 3 Bank of the West COVID-19 Case Study • Founded in 1874 as “Farmers National Gold Bank” • Currently owned by BNP Paribas • HQ in San Francisco, CA • 10,000+ Employees in 23 states with over 600 branches • $80.7 Billion in Assets Under Management • Lines of Business include Retail Banking, Personal Finance, Commercial Banking, and Wealth Management
- 3. 4 COVID-19 Case Study Small Business Administration & US Treasury • Paycheck Protection Program • Forgivable Loans for small business • Backed by US Government • Keep workforce engaged • Application through your financial institution Photo by CDC on Unsplash
- 4. 5 COVID-19 Case Study – Banking Institution Applications & Processing • Predicted ~2000 applications in first weeks 0 500 1000 1500 2000 2500 1 2 3 4 APPLICATIONS WEEKS Paycheck Protection Program (PPP) Applications
- 5. 6 COVID-19 Case Study – Banking Institution 0 5000 10000 15000 20000 25000 1 2 3 4 APPLICATIONS WEEKS Paycheck Protection Program (PPP) Applications Applications & Processing • Predicted ~2000 applications in first weeks • Actual • 9000 first days • > 20,000 first week
- 6. 7 Data Virtualization Banking Institution – Solution! Solution: Using Data Virtualization (DV) • Lenders able to access all data • Quickly able to add new sources • Leverage existing systems
- 7. 8 Banking Institution - Data Management Architecture Logical Data Warehouse • Data and query optimization • Data governance • Unified security management • API management platform
- 8. 9 A COVID-19 Case Study – Benefits • Speed ▪ Started at 8am and finished at 6am the next day • Flexibility ▪ Problem: business requirements changed in real time as they dealt with the exploding volume of applications ▪ IT was able to respond in real time as the business requested new data sources be added to help categorize the applications • Agility and Time to Market ▪ This requirement is not possible with Traditional ETL as it would be Slow and not Flexible ▪ Would have required custom coding & taken weeks if not longer (design, development, test, redesign as add new source, dev, test, redesign next source, …) ▪ Every additional source would have taken significant effort to redo ETL
- 9. 10 Finance and Banking Sector Data Challenges 10 • Need for faster, more accurate decision making ▪ Significant increase in business speed & complexity of requirements → IT struggles to deliver in a timely fashion • Ensure business continuity amidst technology evolution ▪ Migration of legacy systems to cloud, modernization of data and applications • Increased regulatory risk, data privacy and security ▪ Exponential increase in regulations effecting data across geographies, departments and industries
- 10. 11 Are Existing Data Architectures Sufficient? (JSON) Cloud Data (JSON) BI / Reporting CRM JDBC, ODBC, (MySQL) ADO .NET Customer Voice ETL (Internet, Mainframe Unstruc) SOA, Middleware, (Batch Jobs) Enterprise Apps WS – SOAP Java API Billing System Big Data (Web Service - (Hadoop) Web / Mobile Rest) WS – REST JSON, Product Catalog Log files XML, HTML, RSS (Web Service -SOAP) (.txt/.log files) Too Complex - Costly to Maintain Rigid – Difficult to Adapt or Evolve Can’t Scale – Doesn’t Match Speed of Business
- 11. 12 The Solution – A Data Abstraction Layer 12 Abstracts access to disparate data sources Acts as a single repository (virtual) Makes data available in real-time to consumers DATAABSTRACTION LAYER “Enterprise architects are finding that traditional data architectures are failing to meet new business requirements, especially around data integration for streaming analytics and real-time analytics.” The Forrester Wave: Enterprise Data Virtualization, Jan 12, 2018
- 12. 13 Data Virtualization as Abstraction Layer DATA VIRTUALIZATION CONNECT COMBINE CONSUME Share, Deliver, Publish, Govern, Collaborate Discover, Transform, Prepare, Improve Quality, Integrate Normalized Views of Disparate Data Agile Development Performance Governance Resource Management Metadata Monitoring Scheduler Security
- 13. Source: Gartner 2018 Data Virtualization Market Guide Through 2022, 60% of all organizations will implement data virtualization as one key delivery style in their data integration architecture.
- 14. 15 Logical Data Architectures in Practice 15 Logical Data Warehouse - a virtual architectural layer that exists on top of a physical data warehouse and provides a logical layer for accessing data in EDW and joining it with other enterprise data • Eliminates need to move data • Delivers more current data • Lower latency • Structure of data is delivered at run-time • Complements physical EDW • without relocating and transforming data ahead of view time. Data Virtualization
- 15. 16 Abstracting Data Source Security • Data Virtualization layer provides single point of control • Implement security constraints once • Integrate with existing authentication system (e.g. LDAP/AD) • Single point for monitoring/auditing • Who, what, when, how, … • Ensure compliance with corporate policies
- 16. Case Study
- 17. Business Need Solution Benefits Regional Community Bank Improves Business Process Efficiency Using the Logical Data Warehouse Case Study This regional bank is headquartered in Florida and is one of the largest community banks with approximately $4 billion in assets and $3.2 billion in deposits. The bank provides integrated financial services, including commercial and retail banking, wealth management, and mortgage services to customers through advanced banking solutions ▪ Accelerate business operations in loans, deposits, and other departments through use of self-service reports and dashboards ▪ Establish a central information delivery platform to easily add new data sources from acquired companies ▪ Prior cloud-based data warehouse was inflexible to accommodate new data sources ▪ Denodo used as the enterprise-wide logical data warehouse for analytical and operational purposes ▪ Denodo aggregates data across cloud and on- premise sources – IBM Unica, FIS, … ▪ Denodo feeds data to Tableau, SAS portals, mobile devices, etc. ▪ Improved efficiency through self-service for business users in loans, deposits, fraud, credit, and risk departments ▪ Reporting turnaround time improved from 2-3 days to 2 hours ▪ Business operations such as loan processing is handled in real-time
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- 20. 22 Summary 22 Data virtualization can provide the foundation for digital transformation. Helping Companies: • Create a sophisticated data service to easily share data within and across facilities in real-time • Ensure business continuity amidst technology evolution • Enable control and governance for data management
- 21. Next steps
- 23. 25 Virtual Hands-on Lab Thursday 26 November 2020 8:30am – 12:00pm https://denodo.link/2Ftpq87
- 24. Test Drive Access Denodo Platform in the Cloud! Take a Test Drive today! GET STARTED TODAY https://denodo.link/2SVq2qe
- 25. Q&A
- 26. Thanks! www.denodo.com info@denodo.com © Copyright Denodo Technologies. All rights reserved Unless otherwise specified, no part of this PDF file may be reproduced or utilized in any for or by any means, electronic or mechanical, including photocopying and microfilm, without prior the written authorization from Denodo Technologies.