When I reflect back on the past year and the pandemic, I’m struck by how the reliance on remote work and operations has changed the fundamentals of business forever. For the financial services industry, this rings particularly true. Many conversations I’m having right now with organizations revolve around embracing a transformation cloud, and thinking of cloud computing not just as an infrastructure decision, but also as the locus for transformation throughout the company. 

Today, as we welcome the industry to our Financial Services Summit, we’ll demonstrate just how Google Cloud accelerates a financial organization’s digital transformation through app and infrastructure modernization, data democratization, people connections, and trusted transactions. We hope you’ll join us.

How we’re helping financial services firms build their transformation clouds

At Google Cloud, we continue to focus on areas where we can bring the best of our capabilities to banking, capital markets, insurance, and payments customers around the world. Our work with financial services industry customers has given us a deep understanding of the real-world, specific use cases that matter most to them. This groundwork led us to engineer products and solutions that are open and flexible, not ones that force them to rip out existing investments in ERP or other early IaaS cloud implementations. 

It’s why we’ve engineered solutions such as Lending DocAI, Open Banking with Apigee, and Datashare for financial services to help transform the industry. These solutions were created with our customers’ security and compliance top-of-mind and are built at the intersection of user-optimized experience, technology, and sovereignty.

At their core, financial institutions want to drive growth, reduce costs, mitigate risk, stay compliant, and increase efficiency. As a result, when we partner with them on their transformation journeys, we consider three essential focus areas: 

• Enabling the human experience and connected interactions
• Building an open and intelligent data foundation for better insights
• Providing the most trusted and secure cloud in the industry

Enabling humans and connected interactions

A company’s transformation is about more than technology; people and culture ultimately drive change. HSBC, for example, recognized its business users would benefit from guided answers to common questions around risk policy compliance, and turned to Google Cloud to leverage AI and machine learning bots to assist employees, ease the burden on policy experts, and improve the user experience. Using Dialogflow, a core component of Contact Center AI, HSBC was able to build a conversational platform that quickly and accurately addresses user needs at scale. 

Another example is Equifax, which used Google Workspace to support collaboration not only internally between employees, but also externally with customers. Customers can use Google Cloud solutions for financial services to build these sorts of technology-enabled human interactions quickly and easily—supporting organizational change at scale.

Building an open and intelligent data foundation for smarter, faster insights

The real impact of Google Cloud solutions for financial services comes when the whole company has access to the right information at the right time, and can act more intelligently on that data. Our solutions help businesses safely leverage their data and get a complete 360-degree view of their customers’ information, which can often be scattered across multiple systems (CRM, lending, credit, etc.). This helps financial institutions improve the overall customer experience—and sometimes even develop new products quickly. 

Indeed, all financial institutions are looking for ways to grow revenue and reduce expenses, and data can be a critical ingredient to doing both effectively. As daily transactions rise, so does the volume and complexity of data. But to implement new customer experience innovations (and new revenue streams), financial institutions must first capture data effectively. This is why AXA Switzerland, for example, uses real-time analytics on Google Cloud to gain cross-industry insights about future trends and customer preferences.

Financial services organizations also need the confidence of building on a platform that provides choice, flexibility, and agility to move fast. It’s why we have an open cloud approach that allows Google Cloud services to run in different physical locations such as on-premises, other public clouds, and the edge. Customers can also harness the power of data and AI through our open APIs, machine-learning services, and analytics engines on any major cloud platform. This is why companies like Macquarie Bank are taking advantage of Google Cloud’s open, hybrid architecture to modernize and empower its developers.

Compliant and secure to address risk and regulatory needs

As a highly regulated industry, financial services is focused on security and compliance, risk and regulations, and fraud detection and prevention. Google Cloud offers unique capabilities to earn customers’ trust as part of our continuing work to be the most trusted cloud in the industry. Google Cloud provides a secure foundation that you can verify and independently control. Our cloud technology reduces risk and data loss, because it is built on comprehensive zero-trust architecture. Finally, we offer a shared-fate model built on best practices in risk management via automation, guidance, and insurance. This is why customers like BBVA have confidence anywhere their systems may operate. 

On the regulatory front, global legislators and regulators continue to focus on the stability of the industry that only a decade ago went through one of the biggest liquidity crises in history. With this oversight comes strong expectations of risk mitigation. Google Cloud offers a single, global set of controls, reviewed by financial institutions and regulators around the world, and verified in collaborative audits—making compliance simpler and less costly for our customers.

Finally, Google Cloud allows financial services firms to operate confidently with advanced security tools that help protect data, applications, and infrastructure, as well as their customers from fraudulent activity, spam, and abuse. We help protect your data against threats, using the same infrastructure and security services we use for our own operations, ensuring you never have to trade-off between ease of use and security. Google Cloud encrypts data at-rest and in-transit. And we now also offer the ability to encrypt data-in use, while it’s being processed for customer VM and container workloads.

Let us help you with your transformation cloud journey

We’ve seen leading financial services companies embrace Google Cloud to help them move beyond infrastructure toward the next phase of their cloud evolution. This is an era where no company is better positioned to lead than Google Cloud, and we’re excited to help you with your journey.

Learn more about Google Cloud for financial services.

Casper Labs announced a collaboration with Google Cloud that will allow developers to launch public and/or private Casper nodes directly from Google Cloud. This enables a much more seamless and highly secure process for the millions of developers who want to build in blockchain environments without having to learn new, highly specialized programming languages. Additionally, Google Cloud will provide its scalable and reliable infrastructure to developers building on the Casper Protocol. 

Blockchain technology is maturing 

As blockchain technology matures, a growing number of businesses are embracing it as a key way to drive new efficiencies and realize cost savings. 

According to a recent Casper Labs study, 87% of executives polled in the United States, United Kingdom and China reported plans to invest in a blockchain solution in 2023. This is due in no small part due to recent innovations that help organizations overcome the so-called Blockchain Adoption Trilemma, which previously held that it was impossible for any blockchain to be simultaneously a) decentralized, b) scalable, and c) secure.

Thanks to the rise of proof-of-stake blockchains like Casper, new models have emerged that enable a more scalable and secure architecture that no longer forces a compromise on decentralization. 

Another trend facilitating these growing adoption rates is the rise of WebAssembly (WASM) as a baseline technology for newer blockchains, including Casper. WASM (created by W3C) makes application development in blockchain environments far more accessible and interoperable to the millions of developers worldwide who specialize in languages like Java, Javascript, C++ and Rust. Previously, any blockchain-based build required a high degree of specialized developer knowledge, which made it a much more challenging option for most organizations. 

Meet Casper

Casper is a permissionless, decentralized public blockchain based on WASM that was built explicitly to foster enterprise adoption of blockchain technology. Beyond its more accessible model, Casper is the first and only blockchain to offer native upgradable smart contracts. This means that organizations can have the option to securely and consistently update software code even after it is running on Casper. This gives organizations the control and flexibility to use industry best practices, such as continuous deployment and continuous integration, which are already in use in their IT departments. Casper is also highly configurable and allows organizations to support public, private, and/or hybrid deployments. 

Casper is also noteworthy for the presence of Casper Labs, a software development and professional services firm that supports organizations building on the Casper network. Unlike most blockchains that follow a more traditional open-source project, Casper Labs provides around-the-clock support and bespoke software development for enterprise organizations. Recently, Casper Labs helped patent management company IPwe execute the largest-ever blockchain deployment, featuring more than 25 million patents being added as custom NFTs to the Casper Blockchain. 

How to get started with Casper on Google Cloud

Developers who want to start building on Casper can find a comprehensive series of tutorials here.

The Casper Association also recently announced a $25 million grant program to support projects and developers building on Casper. Interested participants can apply here.

With unemployment application submissions reaching record numbers over the past year, state and local agencies in the United States have faced the challenge of processing unprecedented numbers of claims per week. The digital infrastructure most agencies have in place is unable to handle this volume, resulting in constituents waiting longer, and bad actors taking advantage of vulnerable systems. The Department of Labor Inspector General estimates that $63 billion in claims distributed is either an improper payment or fraud. 

Validating claims also requires secure data sharing with other agencies for document and identity verification. Government leaders need a way to allow case adjudicators to quickly and confidently release backlogged claims, integrate with existing systems, and segment legitimate claims from potentially fraudulent ones — all within limited government budgets — securely and at scale.

Implementing a fraud detection solution on Google Cloud

States were under pressure to release payments, while also filtering out potentially fraudulent claims. SpringML and Google Cloud developed a framework to give adjudicators a reliable verification process that quickly filters potentially fraudulent claims, while processing the remaining claims so benefits reach citizens in a timely manner. SpringML and Google Cloud, applied AI-powered machine learning models to detect anomalous patterns in large datasets. Using Google Cloud tools, SpringML implemented a solution to streamline workflows, improve efficiencies, automate processes and identify potentially fraudulent claims.

SpringML used a variety of Google Cloud products to deliver a fraud detection solution, including:

• Google Cloud Storage to store and manage data
• BigQuery to store tabular data and BigQuery Machine Learning (BQML) to conduct machine learning on that data
• AutoML solutions to build predictive models and risk scoring
• Visualization tools such as Looker and Data Studio to present data and help government leaders make informed decisions.

Implementing machine learning to detect improper payments allows agencies to classify claims as “fraud” or “not fraud” based on the number of flags, as well as prioritize the most urgent claims. Deploying intelligent virtual agents to handle frequently asked questions meant that live agents could focus their time on more challenging cases. 

Even once the pandemic is behind us, there will be bad actors trying to take advantage of overwhelmed or legacy systems. We’ve identified a few best practices for agencies managing enormous case loads and looking to improve improper payment analytics: 

• Move your systems to the cloud. Many on-premises legacy systems can’t update their applications and scale to meet the volume of claims. Moving to a cloud environment enables rapid solution deployment and ingestion of large amounts of data without fear of overloading the system. The cloud scales with you–cost-effectively and securely. 
• Understand patterns in the data. The answer is always in the data — we used deep analysis to help uncover suspicious patterns in large data sets. We implemented unsupervised machine learning to learn behaviors and create configurable rules that adjust to new information that comes into the system. We can uncover patterns that are likely associated with fraud – ones that a human might have missed. 
• Use AI/ML tools to automate your existing systems and teams. These tools enable humans to work smarter and more efficiently. We automate anomaly detection and create dashboards for adjudicators to rapidly process claims. We are enabling the Wisconsin Department of Workforce Development by implementing automatic calculations and processing of recharge amounts, resulting in faster processing times and fewer human errors. Proactive fraud detection and timely calculation of recharge payment allowed DWD to ensure the benefits reached the right individuals.
• Build flexibility into your systems. We discovered that fraud patterns change over time. For instance,flags for fraud during March-May 2020 were vastly different from those we found in June-July 2020. Google Cloud tools make it easy to continually update algorithms to detect patterns and integrate external data sources.

Using Google Cloud tools, we can update digital infrastructure and incorporate machine learning best practices to help organizations efficiently process large volumes of claims and identify high probability fraudulent ones. SpringML provides consulting and implementation services and industry-specific analytics solutions that deliver high-impact business value to accelerate data-driven digital transformation. Learn more about fraud detection and how to improve improper payments analytics by watching our webinar. 

Getting started with your migration

One of the challenges with cloud migration is that you’re solving a puzzle with multiple pieces. In addition to a number of workloads you could migrate, you’re also solving for challenges you’re facing, the use cases driving you to migrate, and the benefits you’re looking to gain. Each organization’s puzzle will likely get solved in their own unique way, but thankfully there is plenty of guidance on how you can migrate common workloads in successful ways. 

In addition to working directly with our Rapid Assessment and Migration Program (RAMP), we also offer a plethora of self-service guides to help you succeed! Some of these guides, which we’ll cover below, are designed to help you identify the best ways to migrate, which include meeting common organizational goals like minimizing time and risk during your migration, identifying the most enterprise-grade infrastructure for your workloads, picking a cloud that aligns with your organization’s sustainability goals, and more: 

• Get started with this cloud migration guide and checklist
• Key considerations for building a migration factory to Google Cloud
• Understanding the cloud migration strategies at your disposal
• Understanding how to migrate key enterprise workloads to Google Cloud

Which workloads are you moving?

In addition to the guides above which help you through your end-to-end migration, it’s also important to understand the specific workloads you’ve got on-premises (or in other clouds). Each workload has their own unique nuances — what works for one might not work perfectly for another. This is where leveraging the expertise of our RAMP team is crucial, and why we have lots of migration guides for specific workloads and end-states. For each workload, we’re highlighting a few guides that we think could be most helpful, but you can also click each topic to learn more or find more guides. 

Microsoft

• Modernization path for .NET applications on Google Cloud
• Managed Service for Microsoft Active Directory is GA
• Migrating Microsoft workloads to Google Cloud yields results

VMware

• Migrate, scale, and innovate at speed
• Boost Retail Intelligence and Agility in the Cloud
• Retire your tech debt: Move vSphere 5.5+ to Google Cloud VMware Engine
• Financial Services Spotlight:  Elevating agility and security in the cloud

Oracle

• Curious about Google Cloud Bare Metal Solution? Start here
• Getting Started with Google Cloud’s Bare Metal Solution
• Guide – Bring new life to your databases with an Oracle migration

SAP

• SAP on Google Cloud: Migration strategies
• Run your SAP workloads on Google Cloud Bare Metal Solution
• eBook – Google Cloud for SAP: The enterprise cloud for business agility, insights, and innovation

Storage

• How to transfer your data to Google Cloud
• An Overview of the Transfer Appliance
• Migration to Google Cloud: Transferring your large datasets
• Transferring data from Amazon S3 to Cloud Storage using VPC Service Controls and Storage Transfer Service

Databases

• Overview of Database Migration Service
• Database migration: Concepts and principles (Part 1)
• Database migration: Concepts and principles (Part 2)
• Database cloud migrations made easy for PostgreSQL, MySQL

Data Warehouses

• Migrating data warehouses to BigQuery: Introduction and overview
• Oracle to BigQuery migration
• Amazon Redshift to BigQuery migration guide
• IBM Netezza to BigQuery migration guide
• Teradata to BigQuery migration guide

Take the next step

When it comes to migration, we’re committed to meet every organization where they are. We fully understand the nuances and challenges of cloud migration, and at Google Cloud we have one singular goal: to help you realize true business value through your cloud migrations. 

Visit our Migration Architecture Center to find even more guides to use during your migration, or if you’re looking to dive a little deeper into planning, sign up for a free discovery and assessment of your existing IT landscape.

Compute Engine is a customizable compute service that lets you create and run virtual machines on Google’s infrastructure. You can create a Virtual Machine (VM) that fits your needs. Predefined machine types are pre-built and ready-to-go configurations of VMs with specific amounts of vCPU and memory to start running apps quickly. With Custom Machine Types, you can create virtual machines with the optimal amount of CPU and memory for your workloads. This allows you to tailor your infrastructure to your workload. If requirements change, using the stop/start feature you can move your workload to a smaller or larger Custom Machine Type instance, or to a predefined configuration.

Machine types

In Compute Engine, machine types are grouped and curated by families for different workloads. You can choose from general-purpose, memory-optimized, compute-optimized and accelerator-optimized families. 

• General-purpose machines are used for Day-to-day computing at a lower cost and for balanced price/performance across a wide range of VM shapes. The use cases that best fit here are web serving, app serving, back office applications, databases, cache, media-streaming, microservices, virtual desktops, development environments.
• Memory-Optimized machine are recommended for ultra high-memory workloads such as in-memory analytics and large in-memory databases such as SAP HANA 
• Compute-Optimized machines are recommended for ultra high performance workloads such as High Performance Computing (HPC), Electronic Design Automation (EDA), gaming, video transcoding, single-threaded applications.
• Accelerator-Optimized machines are optimized for high performance computing workloads such as Machine learning (ML), Massive parallelized computations and High Performance Computing (HPC)

How does it work?

You can create a VM instance using a boot disk image, a boot disk snapshot, or a container image. The image can be a public operating system (OS) image or a custom one. Depending on where your users are you can define the zone you want the virtual machine to be created in. By default all traffic from the internet is blocked by the firewall and you can enable the HTTP(s) traffic if needed. 

Use snapshot schedules (hourly, daily, or weekly) as a best practice to back up your Compute Engine workloads. Compute Engine offers live migration by default to keep your virtual machine instances running even when software or hardware update occurs. Your running instances are migrated to another host in the same zone instead of requiring your VMs to be rebooted. 

Availability

For High Availability (HA) Compute Engine offers automatic failover to other regions or zones in event of a failure. Managed instance groups (MIGs) help keep the instances running by automatically replicating instances from a predefined image. They also provide application based autohealing health checks. If an application is not responding on a VM, the auto healer automatically recreates that VM for you. Regional MIGs let you spread app load across multiple zones. This replication protects against zonal failures. MIGs work with load balancing services to distribute traffic across all of the instances in the group. 

Compute Engine offers autoscaling to automatically add or remove VM instances from a managed instance group based on increases or decreases in load. Autoscaling lets your apps gracefully handle increases in traffic, and it reduces cost when the need for resources is lower. You define the autoscaling policy for automatic scaling based on the measured load, CPU utilization, requests per second or other metrics.

Active Assist’s new feature, predictive autoscaling, helps improve response times for your applications–When you enable predictive autoscaling, Compute Engine forecasts future load based on your Managed Instance Group’s (MIG) history and scales it out in advance of predicted load, so that new instances are ready to serve when the load arrives. Without predictive autoscaling, an autoscaler can only scale a group reactively, based on observed changes in load in real time. With predictive autoscaling enabled, the autoscaler works with real-time data as well as with historical data to cover both the current and forecasted load. That makes predictive autoscaling ideal for those apps with long initialization times and whose workloads vary predictably with daily or weekly cycles. For more information, see How predictive autoscaling works or check if predictive autoscaling is suitable for your workload, and to learn more about other intelligent features, check out Active Assist.

Pricing

You pay for what you use. But you can save cost by taking advantage of some discounts! Sustained use saving are automatic discounts applied for running instances for a significant portion of the month. If you know your usage upfront, you can take advantage of committed use discounts which can lead up to significant savings without any upfront cost. And by using short lived preemptive instances you can save up to 80%, they are great for batch jobs and fault tolerant workloads. You can also optimize resource utilization with automatic recommendations. For example if you are using a bigger instance for a workload that can run on a smaller instance you can save costs applying these recommendations.

Security

Compute Engine provides you default hardware security. Using Identity and Access Management (IAM) you just have to ensure that proper permissions are given to control access to your VM resources. All the other basic security principles apply, if the resources are not related and don’t require network communication amongst themselves, consider hosting them on different VPC networks. By default, users in a project can create persistent disks or copy images using any of the public images or any images that project members can access through IAM roles. You may want to restrict your project members so that they can create boot disks only from images that contain approved software that meet your policy or security requirements. You can define an organization policy that only allows Compute Engine VMs to be created from approved images. This can be done by using the Trusted Images Policy to enforce images that can be used in your organization. 

By default all VM families are Shielded VMs. Shielded VMs are virtual machine instances that are hardened with a set of easily configurable security features to ensure that when your VM boots, it’s running a verified bootloader and kernel — is the default for everyone using Compute Engine, at no additional charge. For more details on Shielded VMs refer to the documentation here.

For additional security, you also have the option to use Confidential VM to encrypt your data in use, while it’s being processed in Compute Engine. For more details on Confidential VM refer to the documentation here.

Use cases

There are many use cases Compute Engine can serve in addition to running websites and databases. You can also migrate your existing systems onto Google Cloud, with Migrate for Compute Engine, enabling you to run stateful workloads in the cloud within minutes rather than days or weeks. Windows, Oracle or VMware applications have solution sets enabling a smooth transition to Google Cloud. To run windows applications either bring your own license leveraging Sole-tenant nodes or using the included licenced images. 

Conclusion

Whatever your application use case may be, from legacy enterprise applications to digital native applications, Compute Engine’s families will fit it. For a more in-depth look into Compute Engine check out the documentation. 

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