Financial Services Industry Solutions
NetApp unlocks the power of the cloud for the financial services industry
NetApp is the trusted, industry-leading advisor to more than 9,000 FSI organizations worldwide, solving performance and security challenges and helping FSI companies gain a competitive advantage in this fast- evolving marketplace.
In the financial services industry (FSI), maximum trust and minimum risk are crucial to success.
The industry is changing at an unprecedented rate. It seems that every day a new option is presented as the best way to increase customer satisfaction, efficiency, and security.
The challenge lies in choosing the best path forward in an industry where trust is of paramount importance. Missteps can be costly in terms of both expense and trust.
As a result, some organizations are concerned about taking steps in any direction and risk losing traction to competitors. NetApp is the trusted, industry-leading advisor to more than 9,000 FSI organizations worldwide, solving performance and security challenges and helping FSI companies gain a competitive advantage in this fast- evolving marketplace.
NetApp® solutions, products, and expertise can help demystify the myriad options, simplify the process, and create the right solution, whether that solution is in the cloud, on the premises, or in a hybrid environment that evolves with changing needs. This is true regardless of where an organization is on its digital transformation journey. NetApp has the expertise and experience to guide FSI organizations every step of the way, increasing efficiency, security, and customer satisfaction, while reducing cost and risk.
Features and Benefits
The capabilities that set NetApp Financial Services Industry Solutions apart.
The forecast is for fast-paced change
Market trends show change on all fronts
As part of a highly regulated and compliance-driven industry, many FSI companies have been slower to adopt some of the modernization technologies that have disrupted other vertical markets. Market conditions, such as increased customer expectations, new competition from fintech, and even events such as the global pandemic, are forcing FSI companies to accelerate their plans to modernize. Predictions are for continued industry growth in numerous areas, including the following:
- Overall IT spending is expected to grow 6.2% year over year, with FSI to reach $421B-$436B by 2023
- Worldwide public cloud revenue was expected to grow 6.3% in 2020 to $257.9B from $242.7B in 2019, and continue to grow to $364B by 2022
- The storage market is predicted to grow 2.4% year over year, with FSI to reach $5.3B by 2023
What do these trends mean for you?
The most likely short- to mid-term model will be a combination of on-premises, hybrid cloud, and public cloud, particularly when it comes to the migration of business-critical Tier 1 enterprise applications. In general, there is an increased need to provide modern, personalized financial products and services to meet evolving customer demand. To fully understand these evolving needs, your organization requires deep customer intelligence, translating mountains of data into actionable analytics and insights. Innovation follows insight. Millennials don't want to bank or do business the way their parents and grandparents did. They will continue to push for convenience, speed, and access at all times, from all places, through all devices. Increasingly, we are seeing an upswing in the global need for FSI innovation, driven both by consumer demand for better experiences and by an increased appetite for secure, remote enterprise capabilities. In addition to digital transformation and cloud mandates, you are facing mounting pressure to adopt artificial intelligence (AI), machine learning (ML), and blockchain to automate and improve both experience and decision making. AI and ML are already being used in risk management, fraud prevention, stock performance prediction, process automation, and the personalization of services. Blockchain is now being used for cross-border transactions, trade finance platforms, clearing and settlements, identity verification, and credit reporting. Pressure to adopt will continue as these technologies show positive results in automation, cost savings, and fraud reduction. Added to all this is the overlay of compliance, which is both ever-changing and increasingly complex. In addition to privacy regulations that vary by jurisdiction, such as GDPR and CCCA, you are juggling resilience and resolution requirements, retail and wholesale conduct requirements, and a slew of Know Your Customer and Anti-Money Laundering regulations. Technology can help your compliance team control data, achieve compliance objectives, and integrate compliance directly into your organization. Compliance does not have to be reactive; it can be a strategic, proactive function. The Greek philosopher Heraclitus wrote "The only constant in life is change" around 500 BCE, and the adage rings truer than ever today. It is crucial for your organization to embrace change in order to triumph over your competitors and succeed in a tumultuous marketplace.
Industry challenges—overcome yours with technology
Cybersecurity threats are on the rise
Very high on the list of challenges is the increasing number of ever-more complex cybersecurity threats from a rapidly expanding number of sources. Nowhere is this a more serious threat than in your industry. With the increasing focus on information as a lynchpin of financial services, the threat of data breaches continues to grow, as data becomes a highly attractive target for cybercriminals. Attacks are on the rise. In fact, on average, hackers attack a system connected to the internet every 39 seconds, amounting to about 2,244 intrusion attempts each day. New threats emerge constantly, with hackers moving quickly to exploit new loopholes and to work around security measures put in place to combat previous threats. In addition to the old standards of credential and identity theft, ransomware threatens to not only steal data, but to hold it hostage. There are also an increasing number of data attacks stemming from motivations other than theft, such as destruction and disruption. Combatting these threats is big business. It is estimated that global spending on cybersecurity products and services will exceed $1 trillion cumulatively between 2017 and 2021.
Competition from neobanks is increasing
You are also under fire from up-and-coming, agile neobank competitors (a branch of fintech) that are not saddled with cumbersome legacy systems. Almost half of bankers (46%) see their legacy systems as the biggest barrier to the growth of commercial banks. Neobanks are financial technology firms that offer internet-only financial services; they don't have physical branches. Neobanks appeal to tech-savvy consumers who don't mind doing most of their money management through a mobile app. Neobanks are investing heavily in technology and going after low-hanging, profitable FSI fruit. They employ cloud-native technologies to target younger customers with a wide range of attractive financial services that are mobile, convenient, personalized, and trendy, speaking to the needs and desires of their generation. According to KPMG, global fintech investments in H1 2020 totaled 1,221 deals and $25.6B. The global fintech market is expected to grow at 20% CAGR to $305B between 2020 and 2025, primarily based on high investment by fintech companies in technology-based solutions and APIs.
Global regulatory fragmentation and the rising cost of compliance
The role of compliance has undergone several dramatic shifts in the past 15 years and continues to evolve in response to both external pressures such as multijurisdictional regulations and the pandemic, and internal pressures to take on a more strategic, more progressive, less reactionary role. Both sources of pressure mean that in addition to an expanding and changing role, compliance requires new resources, priorities, technologies, and skillsets to get the job done. And the cost of that compliance is rising sharply. According to an April 2020 report by LexisNexis Risk Solutions, the cost of compliance to global FSI companies in 2020 alone was expected to be $181B. Because regulatory requirements differ from one jurisdiction to another, there are associated additional processes, work, and costs. "A single directive can lead to 28 different variations, with EU member states 'gold-plating' the transposition into national laws and regulations. That's a nightmare for digital banks [trying] to mitigate regulatory risk and maintain compliance," wrote Professor Tom Butler at the University of Cork.
Critical global shortage of workforce skills in IT and security
Along with the growing emphasis on IT and cybersecurity, we are in the midst of a global shortage of the people we need in these key roles. In 2019, cybersecurity professional organization (ISC)2 reported that the global shortage of skilled workers in IT had exceeded 4 million, up significantly from a year earlier at 2.93 million. This total included more than 560,000 unfilled IT positions in North America, more than 290,000 in Europe, and 2.6 million in APAC. Of the organizations that responded to the (ISC)2 survey, nearly 65% said they were suffering from a shortage of cybersecurity staff. Attracting and retaining skilled employees has never been more crucial—or more difficult.
Pandemic exacerbates challenges
The pandemic forcefully underlines the challenges facing the industry. Being thrust into a situation where FSI companies like yours—along with all other enterprises—needed to accommodate remote workforces has brought many issues to a head. Almost overnight, there was an urgent need to mobilize remote workers and to provide the technology to enable massive numbers of workers to access the data, systems, and applications they need to work remotely and securely. Suddenly, companies that never before needed to allow both Windows and Linux access to data needed to make that change almost instantly. The fast-tracking of equipment, software, applications, policies, and procedures was staggering and will have lasting implications. An October 2020 survey by KPMG and the Financial Services Skills Commission found that 53% of FSI employees aged 31 to 45 want to work more flexibly post-pandemic, while many under 30 are very interested in working from home permanently. Other surveys show that 83% of all employees say they would like to work from home at least one day a week, and 73% of executives report that working from home during COVID-19 has been a success. At the same time, research indicates that working from home is resulting in a 20% to 40% increase in employee productivity. However, there has also been a sharp increase in misinformation and disinformation. Several U.S. organizations, including NASDAQ, the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA), have warned of spikes in market manipulation due to the COVID-19 pandemic. Although the situation may seem daunting, the good news is that new cloud technologies and data tools are designed to help you securely maximize the value from your legacy applications, while leveraging data seamlessly across your entire ecosystem. This ecosystem includes traditional on-premises technologies, private and hybrid cloud solutions, and even multicloud applications offered by hyperscalers. You can blend in deep data insights from new opportunities, such as edge devices, and benefit from the automation and resilience introduced through AI and ML.
Six ways NetApp is helping other FSIs and how we can help you too
Constant fraud attempts demand constant protection
We offer always-evolving and fully proven fraud detection solutions that:
- Prevent loss
- Protect data and privacy
- Keep your business safe from malicious attacks
- Reduce your total cloud storage TCO
- From initial data ingestion
- To training AI models
- To live data inference
- To data archiving
We are the Switzerland of cloud. Ja, that's us.
We've partnered with Microsoft Azure, AWS, and Google Cloud to deliver the advanced capabilities you trust from NetApp across multiple clouds and on-premises locations. Wherever your data resides, now and in the future. This means that your business is resilient and your data is "future proofed" so you can move it wherever and whenever you need to. Anywhere. Anytime. We offer a single, flexible, autonomous cloud volume platform with full visibility and control, and a simple, native cloud experience for advanced data services, including data sync, data backup, data tiering, file caching, and compliance. No matter where your data is—in the cloud, on your premises, or in a hybrid environment—we ensure that you're protected today and into the future, no matter what that future brings.
Compliance. Compliance. Compliance.
Our solutions help you secure and protect all your data across all environments. They comply with regulations in multiple jurisdictions, including Europe's General Data Protection Regulation and the California Consumer Privacy Act, to name just two. We help you save time and reduce costs by automating many tasks including:
- mapping sensitive data
- locating privacy violations
- producing impact analysis reports
Speed and agility
You can migrate even your most challenging mission-critical workloads to the cloud without sacrificing performance or security. Workloads that demand ultra-high performance and ultra-low latency, including HPC, SAP, WVD, and Oracle—we can handle them all. And they can work as well or better in the cloud than they've ever worked on premises. Gain flexible, scalable solutions that evolve with your needs now and in the future. Edge computing, flash technologies, AI and ML, and a powerful unified data platform deliver access to your data at warp speed. We also make sure that you can dramatically reduce the time it takes to move from data to actionable insights.
Partner up, partner
At NetApp we partner only with the best. We work with our network of partners to deliver exactly the solutions our customers need to gain adaptive planning, resilient development, seamless application integration, rapid delivery, and continuous improvement. We've even acquired several partners to integrate their innovations into ours. And, as mentioned earlier, we partner with all the top names in the public cloud. No need to drop their names again. We believe in the power of partnership. Just like you do.
Innovation is our middle name
We're never content to rest on our laurels. We know that nothing in your business stands still, so neither do we. Whether it's subscription-based pricing for on-premises solutions, automated solutions for private cloud, serverless and storageless solutions for containers, or cloud-based virtual desktop services to meet the needs of remote workforces while reducing costs by up to 50%, we're fast and agile. And we're always inventing better solutions for our customers.
Case Study: How NetApp helped one national bank reduce risk and simplify operations
Migration of Murex to Azure
As part of its cloud-first strategy, one of the largest banks in the Netherlands with a long pedigree and offices in 15 countries—decided to migrate its mission-critical Murex application to Microsoft Azure, Such a migration had never been done before. The goal was to enhance and simplify operations and to reduce risk, ensuring compliance in multiple complex regulatory environments and avoiding punitive penalties. Murex is a high-transaction application that plays a critical role in accelerating transformation and compliance for companies that operate in strict and complex regulatory markets. More than 50,000 users worldwide rely on Murex for their daily trading, hedging, funding, risk management, and processing operations. Initially, the plan was simply to refresh the Oracle Exadata platform, but in keeping with its cloud-first strategy, the bank undertook a test to determine whether it was possible to migrate Murex to Azure. The stakes were high, but the reward would be significant in terms of compliance, operational efficiency, and reduced cost. Azure NetApp Files played a key role in the success of the migration of Murex to Azure, because of the low latency, high performance, scalability, availability, and security needed to meet stringent regulatory requirements. The bank has been delighted with the results of the migration. In addition to reducing risk and cost and simplifying operations, the decision to embrace Azure and Azure NetApp Files as part of its cloud-first mandate is also helping the bank to move closer to its corporate goal of sustainable growth.
Key business benefits
- Eliminating serious regulatory penalties at the national and EU level
- Creating a culture of integrity under European Central laws
- Simplifying operations, reducing costs, increasing automation, and creating better governance to drive innovation
Expert Guidance
Thrive with expert-led storage guidance
Get tailored advice on how NetApp Financial Services Industry Solutions fits your environment — from sizing and deployment to long-term optimization.
Technical Specifications
Exhaustive hardware and software metrics extracted directly from official documentation.
-
Overall IT spending growth6.2% year over year, with FSI to reach $421B-$436B by 2023
-
Worldwide public cloud revenue 2020Expected to grow 6.3% in 2020 to $257.9B from $242.7B in 2019
-
Worldwide public cloud revenue 2022$364B by 2022
-
Storage market growth2.4% year over year, with FSI to reach $5.3B by 2023
-
On-premises workloads (June 2020)More than 60% of respondents reported running workloads and applications all or mostly on-premises
-
Cloud workloads (next 18 months)59% reported plans to run workloads and applications mostly or entirely in the cloud
-
Hacker attack frequencyEvery 39 seconds
-
Daily intrusion attemptsAbout 2,244 each day
-
Global cybersecurity spending (2017-2021)Will exceed $1 trillion cumulatively
-
Bankers viewing legacy systems as growth barrier46%
-
Global fintech investments H1 20201,221 deals and $25.6B
-
Global fintech market growth (2020-2025)20% CAGR to $305B
-
Cost of compliance to global FSI companies in 2020$181B (LexisNexis Risk Solutions, April 2020)
-
EU directive variationsA single directive can lead to 28 different variations
-
Global shortage of skilled IT workers (2019)Exceeded 4 million, up from 2.93 million the prior year
-
Unfilled IT positions in North AmericaMore than 560,000
-
Unfilled IT positions in EuropeMore than 290,000
-
Unfilled IT positions in APAC2.6 million
-
Organizations suffering from cybersecurity staff shortageNearly 65%
-
FSI employees aged 31-45 wanting flexible work post-pandemic53%
-
Employees wanting to work from home at least one day a week83%
-
Executives reporting WFH success during COVID-1973%
-
Increase in employee productivity working from home20% to 40%
-
FSI organizations advised worldwideMore than 9,000
-
Top global FSIs working with NetAppMore than 80%
-
Years of experience28 years
-
Cost reduction with cloud-based virtual desktop servicesUp to 50%
-
Bank offices15 countries
-
Murex worldwide usersMore than 50,000
-
Cloud platform usedMicrosoft Azure with Azure NetApp Files
-
Document IDNA-553-0321
-
Copyright© 2021 NetApp, Inc. All Rights Reserved.
Request a custom quote
Build a configuration with a Financial Services Industry Solutions specialist.
Request a quoteLearn more
Explore resources
Datasheets, whitepapers, case studies, and technical documentation.
Explore resources