IBM RegTech Innovations

Address financial crime and high costs with IBM Cloud Private

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In the beginning of the cloud computing era, “private clouds” promised the scalability, flexibility and manageability of public clouds, combined with the security and control of on-premises data center environments. But some early private clouds, in fact, were neither private nor clouds.

Over time, however, such offerings matured and firms like IBM have led the way. Launched in November 2017, IBM Cloud Private (ICP) aims to provide users with the right mix of private and public cloud technologies. It leverages open source technologies like containers, Kubernetes, Helm and Cloud Foundry to deliver the benefits of public cloud but with the control of private. As the recent IBM Cloud white paper How to get the benefits of cloud behind your firewall: IBM Cloud Private states: “Private cloud leverages the benefits of public cloud, including rapid deployment, scalability, ease of use and elasticity, but can also offer additional capabilities such as greater control, increased performance, predictable cost, tighter security and flexible management options.”

Many organizations grapple with the need to work faster, deliver sooner and scale infinitely but, in many cases, cannot run their applications on the public cloud. Often, these firms are restricted by regulatory and legal requirements, however, some impose limitations on themselves and are reluctant to have what they consider to be strategic assets leave their organization. Private cloud can be an ideal solution for these organizations with sensitive or strategic applications allowing them to maintain ownership of the data while gaining the benefits of a cloud architecture. These regulatory and legal restrictions and public cloud deployment reluctance are especially true for the financial industry and, probably more so, within the financial crimes and compliance space, where highly-sensitive, entity-related information is stored and continuously examined in highly-regulated processes.

To combat these challenges, the IBM Watson Financial Services team designed its leading financial crimes and compliance platform, IBM Financial Crimes Insights (FCI), to run natively on IBM Cloud Private. Our financial crimes and compliance platform was specifically designed to run on the hybrid cloud. This strategy helps financial services clients using FCI leverage their existing investments in IBM Cloud Private. Moreover, these clients can continue to reap the benefits of the common platform including agility, scalability, elasticity and self-healing at a broader scale. Over time, IBM expects to make available further services on ICP, including additional security and logging functionalities. We project that by providing FCI clients access to a plethora of modern tools, we will help them scale their financial crime prevention operations and reduce IT-associated costs and hassles by extending existing cloud capabilities.

IBM Watson Financial Services is committed to helping institutions to increase process efficiency and effectiveness. FCI does so by resolving entity relationships and scrutinizing behaviors to identify high-risk entities before they commit financial crimes, thereby, minimizing financial and regulatory burdens and reducing risks. By utilizing IBM Cloud Private along with the broad set of other IBM market-leading technologies – artificial intelligence, advanced analytics, cognitive services, big data and automation functionalities – we can help our clients achieve their goals and continue to provide a full portfolio of cutting-edge and cost-effective solutions across the financial risk and compliance market.

Head of Financial Crimes & Compliance, IBM WFS

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