The needs of the financial services industry are exacting and it is important for the IT function in this market to be able to rely on a complete offer geared to respond to this rapidly evolving situations. New players have recently appeared in the market, with innovative business models, and the regulatory scenario is becoming more and more exacting.
Red Hat’s solutions cover the critical areas of the industry, from trading platforms to risk management solutions, from compliance to multi-channel to sensitive data management, allowing the implementation of “Bank 3.0”. This defines a bank, or a financial institution, able to deliver next-generation services, to go beyond the traditional approach and leverage the new tools and channels made available via the Internet. From the Linux operating system and OpenStack-based cloud infrastructures to application integration, software-defined storage and at-scale orchestration of computing resources, Red Hat offers fully functional, integrated and interoperable architectures for companies in the finance sector.
Some functional areas in which Red Hat technologies play a significant part:
High performance trading
The trading sector is registering a huge growth in transaction volumes coupled with a reduction in value of the typical transaction. In addition, organisations are constantly looking at reducing costs to keep up with global competition as well as having to comply with new national and international regulations.
Red Hat Enterprise Linux combined with JBoss Fuse and JBoss A-MQ integration and messaging solutions provide a flexible and effective solution to address the above issues, so much so that, to date, more than 50% of the world's financial trades are processed on Red Hat® Enterprise Linux.
In finance, more than in other industries, time is money; even a few seconds of downtime can cost millions and any glitch in client service is potentially damaging for revenue. Historically, Red Hat’s platforms offer one of the best in terms of performance and reliability, managing thousands of transactions/events with virtually no latency– exactly what finance organisations need.
Client-oriented multi-channel banking
The era of the “single channel” bank has passed. Now finance organisations address clients’ needs by providing them with the systems, the tools and the platforms that they prefer while also capitalizing on the information generated by these transactions.
Red Hat offers a range of technologies which aid the development and integration of applications to facilitate the relationship with “digital clients” over the long term. In this context, containers are a particularly apt technology to develop, deploy and manage innovative services.
Leveraging the power of big data
One of the main issues for the banking/finance industry is how to quickly gain actionable business insights from the information or data being generated across the organization. The huge amount of structured and unstructured data generated in today’s financial institutions is constantly growing and it all needs to be effectively stored and managed in a secure and cost-effecitve way.
Red Hat’s technology building blocks for enterprise big data deployments include Platform-as-a-Service (Paas), middleware, Infrastructure-as-a-Service (IaaS), and Storage solutions. Red Hat Storage products, such as Red Hat Ceph Storage and Red Hat Gluster Storage, can help financial institutions leverage the huge amounts of information it produces through agile, software-defined storage platforms that can integrate file and object storage, Hadoop data services and in-place analytics.
Finance organisations must also comply with sets of exacting rules, such as Basel III. Like Big Data, risk management calls for high computing capacities in order to analyse the data collected. Red Hat has a unique portfolio of technologies such as JBoss Data Grid, JBoss Data Virtualization and JBoss BRMS, which help organizations remain compliant with rules and regulations, offering scalability to comply with expected service levels.
Success is confirmed on the field
In its different areas of activity, the reliability and robustness of Red Hat’s solutions is validated by the company’s success with its end customers in the banking, finance and insurance industries, who see Red Hat as a trusted technology and business partner.
In the Italian banking and finance industries, Red Hat solutions have been adopted by organisations such as Banca Popolare di Sondrio, Banco Popolare, Equens, FinecoBank, Intesa Sanpaolo, MTS - Borsa Italiana, SIA and Unicredit.
In the financial services industry, opportunities scale up at a quicker pace compared to IT budgets. The same happens with the level of complexity related to managing huge amount of data and complex transactions. In this scenario, Red Hat solutions help new and emerging technologies to meet the requirements in terms of innovation, security, performance and managing complex environments.