Why banks need ‘MEGA’ infrastructure

Banks can cut costs dramatically when millions of customers do their banking in a mobile app instead of in branch. There are various ways to generate revenue from customers who manage their money with a smartphone, tablet or PC. A strong digital infrastructure is now key for any bank wanting to be successful in business and on their digital transformation journey.

This is where many technology-led innovations in banking are taking place. During its annual Intelligent Finance Summit 2022, Huawei put forward the concept of “MEGA”, which stands for “Multi-domain collaborative, Efficient, Green, and Autonomous”, for financial digital infrastructure. For banks and financial institutions, MEGA digital infrastructure brings next-generation computing power, data storage, and connectivity.

Dr Margaret Hu, president of marketing and solution sales, global digital finance, Huawei, said: "For digital and intelligent transformation of finance, Huawei will work with partners to embrace challenges ahead, and help the financial sector build MEGA digital infrastructure."

Working with 49 of the world's top 100 banks and other leading tech companies such as Temenos, Huawei has nurtured an ecosystem of booming digital infrastructure innovations, unlocking the value of the MEGA concept.

Advantages of the MEGA concept include:

Industry's first Storage-Optical Connection Coordination (SOCC): The combination of millisecond-level optical transmission link fault detection and fast storage switchover algorithm reduces the I/O link switchover from 120 seconds to 2 seconds when a transmission line is faulty, ensuring zero transaction failures and 24/7 online service for financial customers.

• Multi-Domain Controller (MDC): The solution implements network-wide simulation verification and one-click configuration delivery, reducing the network change efficiency from days to minutes.

• Converged Storage Pool: All data from physical machines, VMs, containers, or public clouds, can be stored in one data resource pool and centrally managed using the Huawei Data management engine (DME), improving the overall resource utilisation from 40% to 70%, while lowering the TCO by 30%.

• Guaranteed Data Protection: This solution combines the firewall, all-flash production, and all-flash backup to achieve integrated protection ranging from virus detection, prevention, and isolation to data recovery. With the virus detection rate increased from 99.5% to 99.9% and the backup and recovery time shortened by 80%, this solution enhances financial service security to a new level.

• A service-level intelligent O&M solution for the finance industry, to address a series of IT O&M challenges. The solution, jointly developed by Huawei and Netis, visualizes O&M of services, applications, clouds, data centres, networks, and devices from end to end, covering all links.

• An Intelligent Risk Decision solution that combines Tongdun's decision-making engine and model management capabilities, with Huawei’s cloud, data, and AI technologies. This solution, jointly developed by Huawei and Tongdun, helps banks and financial institutions improve decision-making efficiency by over 70%, in scenarios such as anti-fraud and credit rating.

MEGA Infrastructure in Practice

Banks have already started to implement MEGA infrastructure. On Aug 26, The Asian Banker awarded Bank of Communications (BOC) the Best Big Data Implementation award for its Lakehouse DaaS built using Huawei Cloud FusionInsight intelligent data lake.

Powered by Huawei’s GaussDB (DWS) distributed data warehouse, the new infrastructure allows BOC to put its data to better use. For example, the bank can carry out more effective marketing campaigns by creating user personas based on transactions and behaviours, improving the customer conversion rate by 164%; in risk control the system helps the bank analyse the vast amount of user behaviour data, which allows for real-time identification of fraud, reducing the number of reported cases by 52%.

Banks in emerging markets have also implemented new digital infrastructure. Bank Neo Commerce (BNC), a national bank in Indonesia publicly traded on the IDX, is another example of a bank which has successfully transformed itself into a digital bank. In a crucial step towards digital transformation, BNC chose Huawei's cloud-native digital banking solution, a forward-looking, expandable, and scalable infrastructure that turned product iteration time from months to only a few days. In the past nine months, this solution made it possible for BNC to achieve a staggering growth of accounts by 20 times.

For more information on Huawei’s digital infrastructure offerings for the financial industry, visit the website.

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