Industry 4.0 has brought a huge change to the traditional industry and it influences the way many businesses in different sector operate. Among these sectors, there has been a significant change in Financial Sector in term of the transformation of traditional bank into Bank 4.0 with a prediction that banking services will be ubiquitous in the future.
As a major ICT solution provider in Cambodia, Huawei Technologies Cambodia is willing and capable of participating in the banking industry’s transformation roadway. Furthermore, Cambodia is at the very great basis for Financial Service digital transformation: Cambodia has one of the highest mobile penetration rates in the world, with 20.8 million mobile connections, or 124% of the population; 10.7 million smart phones are connected to the internet. Data rates are one of the cheapest in the region at $1 per 10GB; the number of payment accounts with Payment Service Institutions in the Kingdom reached 1.8M (11% of the population) in 2019. Thriving digital finance service will help to accelerate the overall economic development. At the same time, there are also some challenges which need to be addressed.
Diversified, multi-scenario financial services, platform, and ecology will be a feature of the next generation banks to build full-scenario financial services based on mobile apps. In this process, the financial industry will upgrade from Transaction-Centered which focus on people and accounts to Interaction-Centered based on mobile apps. This will also drive the traditional banking architecture from centralised and distributed and Cloud will be the foundations for this transformation.
Three main concerns of Cloud Service: Data security, Business Continuity, and Regulatory Compliance
Data Security: Users are worried that Cloud data will be “peeked” or used by Cloud service providers.
Business Continuity: Users are worried that Cloud resources may be shared with other users and may be affected by other users. Some financial institutions worry that Cloud service providers may not properly manage their Cloud platforms, which may affect the continuity of customers’ business systems. Some other financial institutions worry that they will be bounded by Cloud providers. Others are even worried that the Cloud platform itself has security vulnerabilities.
Regulatory Compliance: Financial institutions are worried that the financial regulatory policies related to Cloud Computing are unclear, which may cause compliance problems for financial institutions.
Cloudification Requirements of the Financial Industry:
The IT systems of traditional large financial enterprises are cloudified to support more agile O&M, such as sustainable and scalable services.
SME financial enterprises are not capable of building internal IT systems. Financial cloud can help these enterprises reduce costs and quickly focus on services.
The rise of Fintech promotes the integration of new technologies with finance, such as big data, AI, Block chain, and Biometrics. These technologies provide services to the financial industry such as cloud services. On the other hand, Fintech has forced traditional banks to transform. Furthermore, traditional banking requires transformation and customer-centric business innovation (such as improving customer access channels). This has a need for transformation of their IT systems. In addition to saving costs, banks are also able to quickly develop new services and compete with the Internet finance that has emerged in recent years.
How we can start with Cloud Service
The Cloudification of banks mainly involves the transformation of customer-oriented business processes at the front-end and the virtualisation of data centers at the middle and back end. Front-end IT investment and innovation are broadly divided into three main areas.
First, digitalisation of traditional banking services, such as mobile finance, digital multimedia finance, mobile banking, and customised platforms integrating social media.
Second, innovative digital financial services, such as Internet credit, Internet securities and fund management, and re-engineering of new payment processes which also includes some value-added services such as digital wallets and virtual currencies.
Third, data modeling and analysis capabilities are built, such as real-time data analysis and innovative service design, to implement risk management, digital marketing, customer segmentation, and product marketing.
Huawei’s Analysis Capability FSI cloud
Cambodian banks have numerous financial requirements. As services such as inclusive finance and online payment are used by more people, it is bound to challenge the IT system and personnel skills of each bank. Banks need to prepare countermeasures and plans in advance. The cloud cannot solve all problems, but it provides a quick and low-cost solution. To enable more banks to accept and use the benefits of Cloud services, banks and regulators need to work together to explore and formulate financial Cloud policies that are consistent with Cambodia’s national conditions and financial market characteristics.
In the future, banks will shift from single services to integrated services. ABC (AI + Big Data + Cloud Native) is the key technology to help them embrace the changes. With its continuous development in recent years, HUAWEI CLOUD has continuously taken the lead in the industry. It has the only full-stack full-scenario AI capability and provides a data enabling platform DAYU to separate storage and computing of big data. In the future, HUAWEI CLOUD will focus on the financial domain and continuously innovate to provide the best Cloud foundation in the industry for bank customers, and help them to quickly achieve digital and intelligent transformation.
Cloud Accelerate Finance Service Industry Digital Transformation
