Data Analytics and Modeling in the Cloud · “insider’s” view of what it takes to transform for sustainability and growth. We’ve helped organizations, large and small, identify

copy2020 Fintova LLC

Data Analytics and Modeling in the Cloud

June 24 2020

copy2020 Fintova LLC 2

TECHNOLOGY

TALENTD A T AS C I E N T I S T S

M O D E LV A L I D A T I O N

Q U A N T I T A T I V EA N A L Y S I S

D A T AM A N A G E M E N T

A N A L Y T I C S amp M O D E L S

S C E N A R I O amp R I S K R E P O R T I N G

About RiskSpan LEADING RISK amp ANALYTICS PLATFORM

RS Edge a scalable cloud-native platform delivering cost savings profit maximization and risk management

QUANT EXPERTISE ON-DEMAND50+ data scientist and quants supporting research analytics and reporting

VETERAN INDUSTRY THOUGHT LEADERSHIPProven financial services leaders driving the industry forward

FLEXIBLE amp CUSTOM SOLUTIONSChoose your data model and service level using one-time or fully outsourced solutions

END-TO-END PLATFORMEasily manage data models and analytics across loans and structured products


STRATEGY INNOVATION DIGITAL DELIVERY SUCCESS

ReimaginingFINANCIAL SERVICES

CONSULTING ADVISORY PARTNERS

Fintova provides strategic advisory and delivery services to the financial services industry Specializing in end-to-end digital the company assists clients across their full transformation technology and operational agendas

Fintova was formed by an accomplished multi-disciplinary team of industry leaders whorsquove held C-level roles in 8 out of the top 10 financial institutions We are NOT generalists We bring an ldquoinsiderrsquosrdquo view of what it takes to transform for sustainability and growth

Wersquove helped organizations large and small identify and successfully deliver on a wide range of strategic initiatives substantially improving capabilities enhancing revenues and achieving meaningful and sustainable cost savings

We understand that digital transformation is not just a technology project but a deeper evolution of business and operating models to become more data-driven Data is the lifeblood of any digital organization and our Virtuous Data Feedback Looptrade drives new insights and capabilities

+1 833FINTOVA infofintovacomwwwfintovacom


Fintova Leadership TeamGary Maier - Founder and Managing Principal CIO of BNY Mellon Investment Management CIO of UBS Asset Management Global Head of Engineering at Blackrock and original creator of Aladdin CTO at York Capital CTO at Five Mile Capital Partners

Brian Flaherty - Asset Management Operations Practice Leader COO of BNY Mellon Asset Management COO Standish Mellon Asset Management Founding member of State Street Strategic Client Relationship Division

Sheri Gilchrist - MarketingDistribution Practice Leader CMOof Prudential Global Investment Management Global Head of Marketing Operations and Digital Transformation at BNY Mellon Investment Management Global Head of Marketing Operations at Eaton Vance

Jon Banford ndash Corporate and Trading Technology Practice Leader Global Head of Treasury and ALM Trading Technology at UBS COO of UBS IT Americas Head of Technology for Dillon Read Capital Management

Keith Bowie - InformationCyber Security Practice Leader CIOof Scotiabank US Global Head of Commodities Technology at UBS Research Scholar within the Digital Financial Services Observatory at Columbia University

Cindy Caruso-Aquila ndash Human Resources Practice Leader Global Head of HR for BNY Mellon Investment Management Head of HR and Internal Communications for ING Investment Management Americas

Sanjay Vatsa ndash Shared ServicesOutsourcing Advisor Head of Global Business Strategies and Solutions at Merrill Lynch Head of Offshoring at Blackrock Head of Transformation Data amp Ops Strategy for Citi Fund Services Managing Principal at Capco Chairman of OMGEO Advisory Board

George Kaouris ndash Private Credit and Real Estate Practice Leader Co-founder and COO of Finitive President of Credit Suppliers Head of Commercial and Residential Real Estate Operations at Five Mile Capital Partners



The Truth Is There Were Already Plenty of Reasons to Adopt Digitalhellip

bull Investment industry has lagged in end-to-end digital vs other verticals

bull Industry-wide fee and margin compression requires greater operational efficiencies and a re-engineering of legacy business models and operating platforms

bull Product is commoditized need to deliver fit-for-purpose client solutions at scale

bull Virtuous Data Feedback Loop connected data-driven insights can improve distribution and manufacturing functions

bull Client Experience is the new Alpha UX seamless integration and time-to-market matters

bull Variablize costs and shift from CapEx to OpEx operating models including outsourcing of non-core and growth in public cloud

bull More reasons



Robust Digital and Data Needed Across All Investment Strategies

bull Product firms will compete on price and scale demanding superior operational efficiency in both manufacturing and distribution

bull Solutions firms are higher-value and stickier but will need to adapt scalable digital platforms that facilitate multi-asset portfolio construction and additionally enable a retail channel

bull Client experience from onboarding to servicing will be a differentiator across managers

bull Alternative managers too will need to embrace more data-driven investment processes and robust client service capabilities especially as competition increases

bull Digital transformation is a business imperative not a technology project

bull None of this happens without a comprehensive and coherent data strategy and architecture



Client Experience is the New Alpha

bull Performance amongst most managers is usually comparable across similar strategies

bull Client acquisition servicing and retention increasingly relies on digital channels

bull Client expectations were already trending towards rich interactive digital experienceshellipbefore COVID-19

bull If nothing else COVID-19 will elevate those expectations and serve as a catalyst for managers to accelerate their adoption of robust contemporary and self-service digital capabilities

bull These capabilities will drive client loyalty and attract new clients

bull Bilateral data not only enhances the client experience but informs the product shelf and manufacturing

bull Ultimately this is ALL enabled by an enterprise data strategy and architecture



Risk Management

bull High market volatility accompanied by substantial losses margin calls and bankruptcies

bull Increased redemptions due to cashflow needs will introduce additional asset pricing pressure

bull Government stimulus along with creditor accommodations and forbearance will provide some relief but not enough

bull Ability to view portfolio issuer and counterparty risks ideally in near-real time is critical

bull Need for increased transparency in alternative assets requires improved data architectures sourcing lineage and governance

bull Firms that have invested in a robust enterprise data platform are in much better shape



Public Cloud as Digital Enabler for Data Analytics and Modeling

bull Pre-trade analytics and modeling represent low-risk use-case for public cloud limitedno NPPI exposure

bull Just-in-time procurement to scale upscale down including GPUshellipno need to spend huge CapEx to provision for a momentary peak

bull Drive innovation and allow for failure without significant up-front costs

bull Application of new technologies including AIML BlockchainDLT Graph Databases etc

bull Prefer Data Virtualization (Denodo Presto JBoss etc) to Data Lakes and Data Warehouses

bull Utilize serverless computing (AWS Lambda AzureGoogle Functions) for event-driven processing at reduced cost

bull All major CSPs offer secure VPCs but configuration ease-of-use and maturity may vary

bull Increase agility and reduce time-to-market

bull Attract and retain contemporary technology talent copy2020 Fintova LLC


The Virtuous Data Feedback LooptradeData is the lifeblood of any efficient supplier whether within financial services or any other industry

A strategic data architecture enables data to be shared across functional boundaries enabling new bilateral insights that enhance both manufacturing and distribution This creates a virtuous feedback loop where one function informs the other

The model also delivers

bull Reduced costsbull Enhanced client experiencebull Reduced operational market and credit risksbull Improved price transparencybull Greater agilitybull Faster time-to-marketbull An innovation pipeline

Dist

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Legacy Models amp Analyticsbull Infrastructure and

Platform as a Service

bull Run existing process -on the cloud

Cloud Native Applications bull Scales on the

cloudbull Has APIsbull Manages costsbull Securebull True SaaS

Serverless Access bull Ad-hoc analysisbull Open source toolsbull Several

commercial toolsbull Scales like SaaSbull Jupyter

Notebooksbull Rbull Publish Appsbull Needs governance

Analytics on the Cloud


User controlled and dynamic scaling for computation and data storage

Compute and Data separation plugin models and data sources

Microservices not a monolithic platform use what you need

APIs for Interaction and Collaboration not subject to UI and pre-defined use cases

Open Source Access

Automated test deployment and versioning

Cloud Native SoftwareWhat to look for in SaaS Analytics Provider


Experiments are cheaper no initial investments

Pay what you use when you use month end and quarter end valuation use case

Surge capacity Covid-19 risk analysis no need to wait no permanent investment

Save time on training models several pre-trained models ndash for NLP

Cloud is cheap but not free manage granular invoicing

Consider storage and data upload costs and approaches

Cloud Economics


On popular cloud platforms

Data and Analytics Tools

Database RedShift SQL Server Big Query

MLAI ML Platform Azure AI AI Hub +TensorFlow

ImageVideo Rekognition Computer Vision Vision

Text Textract TextAnalytics Google NLP

GoogleAzureaws


Datasets In the Cloud AzureTitle Link

US Producer Price Index -- Industry httpsazuremicrosoftcomen-usservicesopen-datasetscatalogus-producer-price-index-industry

US Producer Price Index -- Commodities httpsazuremicrosoftcomen-usservicesopen-datasetscatalogus-producer-price-index-commodities

US Consumer Price Index httpsazuremicrosoftcomen-usservicesopen-datasetscatalogus-consumer-price-index

US Employment Hours Earnings -- National httpsazuremicrosoftcomen-usservicesopen-datasetscatalogus-employment-hours-earnings-national

US Employment Hours Earnings -- State httpsazuremicrosoftcomen-usservicesopen-datasetscatalogus-employment-hours-earnings-state

US Labor Force Statistics httpsazuremicrosoftcomen-usservicesopen-datasetscatalogus-labor-force-statistics

UK Met Global Weather Data httpsazuremicrosoftcomen-usservicesopen-datasetscataloguk-met-global-weather-data

NYC Taxi and Limousine Commision -- For Hire Vehicle Trip Records httpsazuremicrosoftcomen-usservicesopen-datasetscatalognyc-taxi-limousine-commission-for-hire-vehicle-trip-records

NYC Taxi and Limousine Commission ndash Yellow Taxi Trip Records httpsazuremicrosoftcomen-usservicesopen-datasetscatalognyc-taxi-limousine-commission-yellow-taxi-trip-records

NYC Taxi and Limousine Commission -- Green Taxi Trip Records httpsazuremicrosoftcomen-usservicesopen-datasetscatalognyc-taxi-limousine-commission-green-taxi-trip-records


Datasets In the Cloud AWS

Title Link

COVID-19 Data Lake httpsregistryopendataawsaws-covid19-lake

US Census ACS PUMS httpsregistryopendataawscensus-dataworld-pums

NAIP on AWS httpsregistryopendataawsnaip

OpenAQ httpsregistryopendataawsopenaq

GEOS ndash Chem Input Data httpsregistryopendataawsgeoschem-input-data

Deutsche Boumlrse Public Dataset httpsregistryopendataawsdeutsche-boerse-pds

SILAM Air Quality httpsregistryopendataawssilam

Safecast httpsregistryopendataawssafecast


Datasets In the Cloud Google

Title LinkKaggle Database httpswwwkagglecomdatasetsutm_medium=paidamputm_source=

googlecomamputm_campaign=datasets+houseadsampgclid=EAIaIQobChMI-Lab_bCB2gIVk4hpCh1MUgZuEAAYASAAEgKA4vD_BwEampdclid=CPXkqf-wgdoCFYzOZAodPnoJZQ

Realestate10k httpsgooglegithubiorealestate10k

YouTube Tech Talk Channel httppeoplecsailmiteduludwigsdatayoutube_speakers_2013txt

GitHub httpsgithubcomgooglecluster-datablobmasterClusterData2011_2md


TECHNOLOGY

TALENTD A T AS C I E N T I S T S

M O D E LV A L I D A T I O N

Q U A N T I T A T I V EA N A L Y S I S

D A T AM A N A G E M E N T

A N A L Y T I C S amp M O D E L S

S C E N A R I O amp R I S K R E P O R T I N G

About RiskSpan LEADING RISK amp ANALYTICS PLATFORM

RS Edge a scalable cloud-native platform delivering cost savings profit maximization and risk management

QUANT EXPERTISE ON-DEMAND50+ data scientist and quants supporting research analytics and reporting

VETERAN INDUSTRY THOUGHT LEADERSHIPProven financial services leaders driving the industry forward

FLEXIBLE amp CUSTOM SOLUTIONSChoose your data model and service level using one-time or fully outsourced solutions

END-TO-END PLATFORMEasily manage data models and analytics across loans and structured products




























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Data Analytics and Modeling in the Cloud · “insider’s” view of what it takes to transform for sustainability and growth. We’ve helped organizations, large and small, identify

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