It’s a transformative time for the financial services industry. In the fast-changing, tech-driven world banks now live in, they recognize that technology can play a role in helping them meet both their customers’ expectations and challenging regulatory requirements. Coming to Microsoft from that world myself just two weeks ago, I’m now leading the team responsible for helping our customers do just that – regardless of where they are in their transformation journey.
After 20 years in financial services, I’ve seen the impact technology can have, and recognize we have been approaching an inflection point for some time – and are at the tipping point.
We’re approaching the close of a decade, and the industry has a tremendous opportunity to accelerate use of cloud and artificial intelligence (AI) as a catalyst to improve competitiveness, drive growth, elevate customer experiences and keep ahead of changing regulations and cybersecurity threats.
To take full advantage of what Sibos 2019 describes as a hyper-connected world, more banks are making broader cloud platform choices – moving beyond infrastructure services – and extending their cloud investment to productivity, data and AI, and agile customer relationship management services.
They’re making this platform decision to seize the opportunity at hand and evolve to meet the rapidly changing needs and expectations of customers. They recognize technology can help them create the new business models required – even integrate past, present and future.
As we look ahead, key to this will be the ability for financial organizations to:
- Deliver differentiated customer experience by accelerating growth and loyalty through deeper customer insights and relationships
- Modernize payments and core banking with agility to roll out new products and services
- Manage risk across the organization with deep insights and compliance with regulatory requirements
- Empower employees through teamwork and improved employee productivity and accelerate workplace modernization
- Combat financial crime by protecting your bank and customers while lowering compliance costs
Because of the hyper-connectivity, we know that regulatory compliance is and must be a top priority, which is why Microsoft continues to work with financial services regulators and customers to ensure our cloud services help customers meet their strict regulatory requirements. Our team has been a part of the consultation period in sharing perspectives on updated outsourcing guidance by the European Banking Authority (“EBA)” and the final issued guidance, which takes effect on Sept. 30, 2019. This longstanding engagement with regulators around cloud computing is one of the reasons more than 90 percent of Global Systemically Important Financial Institutions (“GSIFIs”) depend on Microsoft cloud services. As a company we’ve made the investments and commitments to ensure they can meet their regulatory obligations.
To accelerate digital transformation, Microsoft has focused on removing barriers to adopting cloud technology – such as regulatory and compliance, and beyond. At Sibos, we’re unveiling several announcements to further underscore this effort:
- Microsoft becomes first public cloud provider to enable connectivity with SWIFT Cloud Connect on Azure. Today, we’re announcing progress in our work with SWIFT since last year’s Sibos where we announced the POC to provide SWIFT via cloud on Microsoft Azure. Working with Bank of New York Mellon, Microsoft Treasury has successfully completed payment transaction tests via SWIFT on Azure by integrating with the Bank of New York-Mellon for payment confirmations. In addition, at Sibos we’ll preview two new planned tools to make compliance and cloud adoption easier for financial organizations processing payment messaging in the cloud; Azure SWIFT CSP Blueprint and Logic App connectors for financial services. The Azure SWIFT CSP Blueprint is now available in public preview and will enable fast and repeatable creation of governed SWIFT environments providing continuous monitoring and audit of CSP controls. Azure Logic App Connectors for financial services will enable organizations that adopt SWIFT services on Azure to easily connect their apps, data, and devices on-premise or in the cloud. These offerings will enable more secure and agile operations that will drive cloud adoption for financial institutions that deploy SWIFT on Azure.
- Dynamics 365 Fraud Protection general availability and new feature addressing wrongful declines: This cloud-based solution will be generally available on Oct. 1, 2019 and is designed to decrease fraud costs and help increase acceptance rates for customer payment transactions with e-commerce merchants. Dynamics 365 Fraud Protection is designed to benefit merchants and banks while also improving customer shopping experiences by providing a seamless purchasing experience. The solution combats payment and account-creation fraud with AI technology that continuously learns and adapts to evolving fraudulent patterns. When generally available, the service will include a new feature (Transaction Acceptance Booster) that addresses wrongful declines – a common issue negatively impacting both merchants and banks. Among the first to deploy the new solution is Wipro Consumer Care & Lighting Group in India to reduce the fraud rate for their ecommerce platform Yardley.com. FMCG players like Wipro Consumer Care & Lighting Group can opt into this feature to increase acceptance rates for authorization requests they make to their issuing banks participating in Dynamics 365 Fraud Protection.
- Microsoft Banking Accelerator adds BIAN API implementation: Following the general availability of the Microsoft Banking Accelerator in July, today we are releasing an API sample implementation on GitHub for interoperability with the Banking Industry Architecture Network (BIAN) API service domains. BIAN is a not-for-profit association to establish and promote a common architectural framework for enabling banking interoperability. Microsoft and BIAN have been working together to help unlock new open banking opportunities by allowing organizations to more seamlessly and consistently share banking-specific data across disparate systems. In addition to the BIAN API samples, Microsoft released an update to Banking Accelerator on AppSource bringing additional use cases for retail banking.
- Microsoft is the first cloud provider to receive a comprehensive cloud assessment from TruSight, an industry-backed, best-practices third-party assessment utility. Today, TruSight delivered a comprehensive on-site assessment of Microsoft’s Cloud Computing environment, including Microsoft Azure, Microsoft 365, and Microsoft Dynamics 365. The assessment was conducted using TruSight’s stringent best-practices assessment methodology. The new TruSight report gives financial services organizations a high-quality assessment of Microsoft’s cloud services based on standardized, industry-designed control assessment methodology. TruSight and its third-party assessment utility was created by leading banking institutions for the collective benefit of all financial services participants. The utility gives financial institutions the ability to access assessments on the most widely used third parties across financial services, rather than having to individually conduct assessments. Microsoft is the first of the major cloud providers to complete the assessment, which covered 27 control domains such as information technology, cybersecurity, business resiliency, privacy, physical security and risk management. Visit the Microsoft Trust Center to learn more.
Microsoft customers share their success stories
Microsoft is focused on empowering financial services organizations to achieve more. That requires being focused on trust, and always enabling our customers – through innovation, and security and compliance investments, as well as industry leading cloud scale. We continue to put our customers at the center of everything we do by sharing their inspired stories from our customers’ success since last year’s Sibos. We see momentum increasing worldwide as our customers tell their transformation stories – answering the questions about how they overcame obstacles, pitfalls to avoid, keys to success, why cloud or AI, and why Microsoft. Here are just a few of their stories:
- Anglo-Gulf Trade Bank, world’s first trade finance bank, hosted entirely on Microsoft cloud
- Bank of New York Mellon, SWIFT and Microsoft turn cloud-based messaging concept into reality during Sibos 2019 Conference
- Deutsche Bank, Deutsche Telekom, SAP, and others trust Microsoft for their digital transformations
- Deutsche Börse and Microsoft reach a significant milestone for cloud adoption in the financial services industry
- HSBC: How HSBC built its PayMe for Business app on Microsoft Azure:Bank-grade security, super-fast transactions, and analytics
- J.P. Morgan and Microsoft announce strategic partnership to drive enterprise adoption of Quorum
- National Bank of Canada empowers and engages workforce, elevates customer and employee experience
- State Street chooses Microsoft Azure, Microsoft Power BI, and Microsoft Teams for Enterprise Investment Management Solution
- TD Bank delivers legendary customer experiences with Microsoft
- UBS Group uses Microsoft Azure cloud to modernize critical business apps, leverage digital channels, and rethink how global workforce collaborates
Microsoft partner news
At Sibos 2019, we’re excited to showcase our partners’ progress in helping our mutual customers with their technology needs. Microsoft is the only cloud provider with a mature partner program and has the largest partner ecosystem in the market with more than 68,000 partners worldwide. Our partners are equipped and prepared to work with financial services organizations of all sizes across all their needs.
We’re featuring the following partner successes and collaboration efforts:
- Accenture Microsoft Business Group empowers enterprises to thrive in the era of digital disruption
- Avanade, Accenture and Microsoft team up at Sibos
- Ernst & Young and Microsoft connect to bring customers together at Sibos
- Finastra creates new era of fintech using Microsoft machine learning and analytics tools
- Marco Polo Network uses Microsoft Azure and Corda blockchain to modernize trade finance
- Temenos launches new AI-powered anti-fraud capability
- Volante Technologies launches SEPA Instant Payments as a Service on Microsoft Azure for RT1 and TIPS