FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Building Digital Native Bank

on AWS

Unni Pillai
Head of Technology | Financial Services
Amazon Web Services | ASEAN

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Challenges facing digitally native banks

Increased Changing customer Evolving regulatory Challenges of scale Shifting business

competition from expectations agendas and complexity models
fast digitizing
incumbent banks

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

There are three main paths to launching a digital bank on AWS

Challenger Banks/FinTechs Digital Bank Offshoots/”Speedboats”

Independent start-up banks with a Subsidiary or extension of an
banking license existing incumbent bank

Build Buy & Build Buy

Use AWS native services to build core Build with Banking SaaS providers Use Banking-as-a-Service
banking systems that meet your needs on AWS infrastructure providers on AWS

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

3 Key Pillars

Enhance customer experiences Develop and launch new Modernize the middle and
products quickly back offices
• Build omnichannel customer • Enable new product capability and • Streamline customer onboarding
experiences leverage specialist ISVs (KYC/AML) and detect fraud
• Predict customer needs and provide • Build ecosystem plays with partner • Improve operational efficiency and back
personalized recommendations organizations for Open Finance office functions

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Enhance Customer Experiences

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Improving customer experience

Run advanced analytics on customer data to obtain Improve customer engagement and conversions with
deeper customer signals and customer behaviors, to personalized product and content recommendations, and
maximize product offerings and increase revenue. targeted marketing promotions.

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Digital banks are developing end-to-end solutions that…

• Use data to gain a more holistic Call Center
understanding of the customer
Mobile Email
• Provide contextualized and personalized
offers

• Simplify adding and offering new products

and services based on customer’s
historical interactions with the bank and
third parties

• Assist customers via their preferred

channels with onboarding and ongoing
support
Voice Portal
• Guide customers towards personalized
financial wellness goals

Stor
7
e
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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS
Omnichannel Service – Reference
Architecture
Amazon Connect Features CRM / Agent integration

Amazon Connect Amazon Connect

Voice ID Contact lens Amazon Connect Call Center Agent
(Biometric Auth) (Sentiment CCP
Analysis)

Amazon RDS
(User / Transaction
data)

Voice
Amazon Connect
Chat (Cloud contact AWS Lambda DynamoDB
center) (Business (Metadata)
Amazon Polly
Customer rules)
(Speech)

Alexa Alexa skill Sagemaker model

enabled Amazon Lex (Business
device (Chatbot) Intelligence /
Promotions)
Customer
engagement
channels Amazon Connect Ecosystem
Business logic / Core integration / Cross sell (Upsell)

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

MSB builds Vietnam’s first digital-only bank in just 10 months

OVERVIEW
Looking to grow quickly and respond to customer needs with agility,
MSB, a commercial bank in Vietnam, built TNEX Digital Bank by
implementing the Mambu cloud-native core banking application on
AWS.

SOLUTION
AWS Landing Zone enabled the bank to automate the environment
setup and quickly run secure and scalable workloads. AWS services, such
as analytics, ML, and containers, help TNEX deploy new products faster.

Through the development of our platform on

AWS, we gained the speed and agility needed
to build a full-service merchant marketplace IMPACT
in six months and an SME and consumer Using AWS services, like Amazon Redshift and Amazon Personalize,
digital bank in only 10 months. TNEX can deliver personalized product recommendations and aggregate
data to make unique offerings to customers in real time.
Bryan Carroll
Chief Executive Officer, TNEX

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Develop And Launch New Products Quickly

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Develop and launch new products quickly

Accelerate product development Leverage open finance

Quickly spin up and shut down Provide banking capabilities to other
environments for easy experimentation financial services providers and monetize
and A/B testing data through open APIs

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

AWS workshops and programs to support

transformation
Executive envisioning Data-Driven Everything (D2E)

• The Executive Visioning team brings together • AWS experts partner with our customer’s
leadership and business owners from AWS leaders across business and technology to
enterprise and start up customers to establish a accelerate their journey to becoming data-
shared vision of success. driven enterprises.
• Visit the AWS Executive Insights page for • Visit the Data-Driven Everything page for
additional detail. additional detail.

Digital innovation workshop AWS Training and certification

• Working Backwards is Amazon’s process of • Free digital training, videos, whitepapers to

discovery and invention that delivers customer help get your team certified on the AWS Cloud.
delight. Working Backwards is how we stay
• AWS Classroom Training to learn with expert
customer obsessed — we start with the
AWS instructors who teach you in-demand
customer and work backwards from the
cloud skills and best practices
moment that the product, service, or experience
is in a customer’s hands • Visit the AWS Classroom Training Overview
page for additional detail.
• Visit the Innovation with AWS page for
additional detail.

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

D2E: Accelerating your data Flywheel

Mobilize
Prepare | Design | Build | Assess
•Stakeholder and Use Case Alignment
•“Think Big” Roadmap with a Storyboard
•Scope for the Minimum Viable Product Definition (MVP)
•Defined Business Outcomes
•High Level Architecture
•Delivery Plan for a 60-Day MVP Build
•PR/FAQ
•Scale Readiness Assessment

Scale
Prioritize | Organize | Secure | Operate
•Business Priorities and Benefits
•Data Community
•Data Literacy and Training Programs
•Templates and Tooling
•Integrated Security
•Automation
•Metrics and Monitoring

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Bukalapak And Standard Chartered Launch Digital Banking Service

OVERVIEW
With a shared vision of bringing financial services to underbanked
Indonesians and businesses, Bukalapak and Standard Chartered (SC)
were looking to launch a digital banking service that was agile, secure,
and scalable.

SOLUTION
The partnership leveraged nexus, a Banking-as-a-Service (BaaS) solution
by SC Ventures which uses AWS’ infrastructure and cloud services such
as Amazon S3, and Amazon RDS to be more responsive to customer
needs and create new applications.
Launching BukaTabungan on AWS gives
customers easy access to digital banking
services to help more Indonesians prosper, IMPACT
and helps Bukalapak create a more seamless The joint launch of the digital banking service BukaTabungan provides
e-commerce experience. convenient digital banking access to more than 110 million users,
allowing its customers to open a bank account online as quickly as five
Mathias Faure
Chief technology officer at Standard Chartered nexus
minutes with no paperwork required.

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Modernize The Middle Office

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Modernize the middle and back offices

Transform KYC/AML & Fraud Improve back office functions

monitoring
Use AI/ML to simplify customer due Manage data, analytics, and reporting
diligence, monitor AML, and prevent fraud with process automation, data
management, and real-time decisioning.

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Putting AI/ML to work !

Financial institutions are increasingly investing in AI/ML because it is cost-effective, easy-to-use, and scalable
using cloud infrastructure

Customer Document Credit decisioning Fraud detection Predictive Personalized

experience processing and underwriting and prevention analytics recommendations
• Streamline customer • Automate loan • Provide credit to the • Identity verification • Portfolio management • Investments vehicles
onboarding and KYC document processing underbanked population
• Payment fraud • Algorithmic trading • Loan/insurance
• Enhance customer • Extract key information • Automate the loan detection underwriting
service with chatbots from regulatory filings decision-making process • Sentiment analysis
• Transaction • Sales or
• Call center optimization • Corporate actions • Image analysis
surveillance recommendations of
• Reach customers via • Due diligence • Securities lending financial products
preferred interaction • AML/sanctions
• Claims processing • Option pricing
channel
• Loan defaults

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS
AWS’s approach to Customer Identification

Amazon SES
Email updates

Amazon SNS
Message notifications

Identity Verification
Onboarding
application Partners = KYC; Amazon S3 Amazon S3 Glacier
Identity verification Data lake storage (For longer retention)
Amazon S3
Prospect
customer

Case management Amazon DynamoDB

Amazon DynamoDB Amazon Lambda
Amazon Textract Metadata store
Metadata store Trigger / Compute
OCR Processing

Amazon Rekognition
Image processing

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Identify verification using Amazon Rekognition

Upload image of
ID to S3

Similarity score

S3 stores the image Amazon Rekognition Amazon Rekognition provides a

of the ID and the compares the image similarity score which measures
image of the user of the ID with the the likelihood that the faces of two
image of the user images are of the same person

Upload picture or stream

video of user to S3

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

How To Get Started ?

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Getting Started 1/2

Dive deep with an industry Work with our solution Engage AWS ProServe and Leverage an AWS partner
specialist to understand how architects to better other specialist AWS teams solution to support your
AWS can help you meet your understand which AWS to work backwards from your journey, and/or scale MVP to
business goals services and architectures requirements to build deliver value
support your use case
POC/MVP

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 Customer Public Web Portal Contact External 3rd Party Customer
FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS Chatbot Wallet ATM / POS
Experience / Channels Website / App Center APIs Marketplace Marketplace

Platform Services Open Banking Platform API Management Layer

Security & Customer Engagement

Monitoring Digital Engagement & Aggregation Micro Services
Campaign
CRM System Loyalty
Cyber Security Management

Auditing Middleware Layer Customer Service Personali-

Engagement Catalogs zation
Monitoring
Core Capabilities
Logging
Core Banking Products Risk & Compliance Advanced Analytics & Business Intelligence
Entitlement
Account Onboarding KYC
Deposits Trade Finance TM System
Origination Solution System Customer Recommend-
Authorization Visualization
behavior ations Engine
Notification Wealth Compliance Reg & Risk
Mobile Wallet KYC Records
Services Remittance Management Records Reporting
Data AI/ML
Data Lake
Authentication Screening Fraud warehouse Modeling
Un/secured
BNPL Solution Gamification System Analytics
Lending
Identity Provider
Credit / Debit Credit Cash
Events Fabric Card Issue/Mgt Management Backend Support Systems Operations
Management
Staff ID & Document
General Ledger Treasury HR System
Schemes / Collateral Credit Access Mgt Management
Dev Ops switch Collections Decisioning
ERP / Customer
Code Repository Accounting
Records
Container Platform
Repository
Dev / Test
Environment Messaging & Event Payment 3rd Parties Regulators / Government Bodies
Rails
CI/CD Pipeline Messaging Credit Bill payment Market Data
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SWIFT Card Reg & Risk Corporate National ID Reg. Watch 24
POS Network
agencies provider Provider Network Reporting Registry Platform Lists
FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Choosing The Right Building Blocks

Core Banking Platforms Customer Experience Fraud / KYC / AML Lending

Customer 360 / Analytics ID Verification

Digital Engagement Lifecycle Management

Accounting / FP&A

CRM Transaction Monitoring

Chatbots Data Enrichment

Consulting Partners

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Getting Started 2/2

Work with your AWS account team to Engage an AWS Partner to understand Leverage AWS ProServe to help with
gather infrastructure requirements to how they can support your path to adopting a CI/CD Operating Model and
help shape your approach to building a launching a digital bank Digital Banking preconfigured landing
digital bank zones to help you build with momentum

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Why banks are choosing AWS Security

Compliance AWS allows unprecedented visibility, near real time
automation and continuous compliance and audit to
AWS has more compliance certifications than any detect misconfigurations
other provider

Speed Scale
Deploy your infrastructure in minutes without upfront 25 Regions, 81 Availability zones, 210 Edge locations,
costs and no compromise on security 12 Regional Edge caches: go global in minutes

Leverage data Expertise

AWS offer managed services and landing zones to
200 services, 70+ AWS analytics, AI and ML services
enable high levels of security and automation. The
to enable fast, data driven decision, deep
extensive partner network provides support to scale
personalization
quickly and security

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FINANCIAL SERVICES | DIGITALLY NATIVE BANKING ON AWS

Thank you!

© 2023, Amazon Web

© 2023,
Services,
Amazon
Inc. or
Webits Services,
affiliates.Inc.
All rights
or its affiliates.
reserved.All
Amazon
rights Confidential
reserved. Amazon
and Trademark.
Confidential and Trademark.