What could you buy with $20 billion dollars? PC Magazine investigated this question a few years ago and the results were interesting. $20 billion dollars could buy you 57 million Apple watches; the entire Island Nation of Dominica; either 80,000 tickets to space OR a literal ladder into space; or four Tesla Gigafactories.

But seriously, who needs that many watches? On a more practical level, IDC predicted earlier this year that three industries – professional services, discrete manufacturing, and banking – will each spend more than $20 billion on cloud services, accounting for more than one third of the worldwide total. It sounds like a lot of money, but the cloud is a cost-effective platform for hosting enterprise applications and for developing and deploying customer-facing solutions, according to Eileen Smith, program director, Customer Insights and Analysis for IDC.

That’s why Fenergo, the leading provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions, announced a partnership with Amazon Web Services (AWS) and Sungard Availability Services (Sungard AS) to offer resilient CLM in the cloud as a Managed Service. The move is a direct response to the growing acceptance of cloud among financial institutions and requests from the Fenergo client community.

Fenergo’s relentless focus on customer requirements led them to partner with Sungard AS – a leading provider of highly resilient and secure infrastructure, within data centers and on AWS. The Sungard AS DevOps team worked with Fenergo’s CLM development experts to deliver a highly tailored, code-driven, secure and resilient environment leveraging the elasticity of the cloud. This managed environment is designed to allow financial institutions to more quickly adopt cloud services to meet an ever-growing roster of needs.

Why Is Cloud the Right Answer?

For one thing, keeping up with the increasing anti-money laundering (AML), counter terrorism funding (CTF), and know your customer (KYC) legislation and requirements is an arduous task, pulling from most companies’ valuable resources. That’s where automation solutions – particularly artificial intelligence (AI) – can be most valuable.

Fenergo’s community-based approach to product development allows clients to collaborate on solution design on a global scale. Its rules-driven solution ensures compliance with multiple global and local regulatory frameworks including AML, KYC, SFTR, Tax (CRS, FATCA, 871M), OTC Derivatives (EMIR, Dodd-Frank, MiFID II, Margin Requirements) and data privacy rules (GDPR). Cloud is well-suited for such collaboration.

For another thing, Fenergo’s fully managed CLM cloud platform provides a hands-off solution for financial institutions’ IT departments, allowing them to focus on more value-add tasks while reducing costs. The Managed Services model closely resembles that of an on-premise environment, making it easy to migrate to or from a cloud environment, or between cloud service providers. This lets customers quickly get their business solutions up and running while still maintaining the flexibility of customer-specific configurations, interfaces, and processes.

And finally, Fenergo’s solution enables IT decision makers to move CLM to the cloud while benefiting from cost efficiencies, scalability, improved customer experiences and increased productivity. Every year, banks face the challenge of having to spend more to maintain infrastructure and run compliance and security technology, while also investing in digital services to remain competitive. At the same time, they are under constant pressure to cut costs. In an industry renowned for hard-line cost-cutting, cloud technology is a huge advantage.

Is It Safe?

In short, yes. Cloud technologies provide the flexibility to recover faster and more efficiently from an outage or other disaster. This provides a more reliable business continuity solution due to the distributed nature of storage and processing and the ability to shift data more quickly.

According to Colin Sweeney, Vice President of Cloud Operations for Fenergo, “the financial services industry has historically eyed the cloud with caution, and our clients have largely wanted to host our CLM platform on-premises. Yet as we move into new sectors, we’re seeing more and more customers put cloud to the top of their agendas.” Sweeney says the demand is partially due to industry-wide digital transformation, but also cost – and the savings are too good to ignore. “Our partnership with Sungard AS ensures our clients can perform client lifecycle management in a secure and scalable environment while experiencing all the benefits cloud offers.”

Financial institutions gain from AI solutions like Fenergo’s because of the way it can mine huge volumes of data, automatically flagging risk-relevant facts faster than humanly possible. This saves valuable time, effort and resources that can be refocused on higher client-value, or higher risk tasks. When used throughout the onboarding process and continuing relationships, AI can find illicit client relationships, beneficiaries and links to criminal or terrorist activity, mitigating the risk of AML regulation breaches.

The fast deployment and flexibility of cloud through a provider such as Sungard AS makes it an ideal platform for launching and running new services. Add the scalability and innovative features of Amazon Web Services and you have a solid foundation for continued innovation. Managed Cloud – AWS from Sungard AS combines the advantages of industry-leading AWS with ongoing management and support from Sungard AS. As a result, your organization can have a less complex, more secure approach to cloud services.

But that’s not all: When you choose Managed Cloud Services for AWS, you also have an integrated process for recovery, because this solution is combined with Sungard AS’ award-winning recovery solutions. A trusted partner can ensure that you are making the right decisions for your deployment, and Sungard AS has been vetted to make those decisions by achieving the Managed Service Provider designation from AWS two years in a row. Fenergo has also achieved Select Technology Partner status in the AWS Partner Network (APN).

The Bottom Line

To stay ahead of the pack, financial institutions must be ready to take on new challenges and innovate faster, better and more efficiently than competitors. In the age of digital transformation, cloud technology can fulfill the wish list of technological operations: quick deployment and faster go-to-market innovations that secure a positive client experience at a fraction of the cost of on-premise, while delivering higher operational efficiencies for banks. Fenergo, Sungard AS and AWS can help.

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