Singapore's DBS bank has signed an agreement with Amazon Web Services (AWS) to be more "fintech-like" and better respond to customer needs.
Through the partnership, DBS will create a hybrid cloud environment optimised for rapid changes of capacity and functionality, which is complementary to the bank's traditional use of data centres.
DBS has also ensured that the implementation meets the requirements of the Monetary Authority of Singapore's Technology Risk Management guidelines. In addition, the bank has established additional technology standards, internal approval toll gates, and data encryption standards specific to its adoption of cloud.
As such, the cloud will enable the bank to experiment in a digital way as well as deliver new applications rapidly, while adhering to the highest standards of security.
One of the first use cases for AWS is in DBS' Treasury and Markets (T&M) business. The bank will leverage AWS for the purpose of pricing and valuing financial instruments for risk management as this requires extensive computing power.
With AWS, DBS has the flexibility to rapidly scale the capacity of its computing grid up or down, without having to make provisions for permanent overcapacity. In the T&M case, it will allow the bank to have a quick and yet cost-effective way of handling short term surges in trading volumes such as those recently caused by Brexit.
According to the bank, it envisages extending its usage of AWS over time and may shift up to 50 percent of its compute workload to cloud within a two-year period. This is hoped to result in significant cost savings, increased resilience and the ability to rapidly respond to customer demand.
Besides this partnership, DBS has continually made significant investments in strategic technology initiatives over the last five years to weave banking into its customers' everyday lives. This includes initiating a re-architecture of the bank's technology as well as catalysing a change in culture within the bank to one that is more "fintech-like" in nature, said DBS.
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