VMware makes trio of announcements

Banks know they need to innovate, and they want to innovate, but it’s hard to do so. Between regulations, legacy systems and communication silos change is hard to coordinate.

VMware makes it easier for them, their global marketing lead for financial services solutions Manasee Dash said.

At the recent Money20/20 event in Las Vegas VMware showcased a blockchain proof-of-concept that enhances the consensus, ledger and smart contract layers of the blockchain.

Manasee Dash

“We allow banks to adopt a business model that allows them to innovate,” Ms. Dash said. “It’s a customer-centric approach where we’re giving banking staff access to information when they need it on the front end while on the back end providing developers access to infrastructure and services that allow them to run the environment but to also build and scale.”

Banks are deploying the blockchain to simplify back-end processing and significantly reduce costs. The blockchain eliminates the need to rely on a central confirming authority that is vulnerable to compromise.

“Our research and development team has been hard at work advancing enterprise blockchain technology to solve some of the current problems around speed to finality, scalable fault-tolerance, and security,” VMware’s senior director of blockchain technologies Michael DiPetrillo said.

“The work our research team has done over three years has produced a full blockchain environment with many industry firsts in the consensus, ledger and smart contracts layers.

“It’s clear blockchain has the potential to disrupt many industries for the better, including every facet of the financial industry. We will continue to work with our customers and partners across industries to deliver solutions that help them address what’s needed not only for today but in the future as well.”

VMware was busy at Money20/20, as they also released the results of a survey providing a glimpse into the future of banking technology.

“We engaged with American Banker to understand how banks and financial institutions are thinking about emerging technology,” Ms. Dash said. “The results are clear – technology is going to drive the next transformational wave, so the question is not if they want to invest in technology, but how fast they can invest.”

Mike Dipetrillo

The survey looked at banks in the $15-$100 billion asset range and those with $100 billion-plus, asking them about their three and five-year technology plans. Seventy-eight per cent said artificial intelligence and voice-based banking chatbots will transform the industry. More than 60 per cent of the $100 billion-level banks are developing blockchain technology.

“All of these technologies are right in our sweet spot,” Ms. Dash said. “A huge proportion of banks spending is in maintaining legacy technology. It’s having a huge impact on their ability to introduce new products.”

“Smaller banks are not as constrained,” Mr. DiPetrillo added. “With fewer layers of decision making they are more agile, so they can use great technology and implement faster.”

Learn more about the survey VMware.

VMware also announced a collaboration with Bank Leumi and Temenos to create an advanced digital banking platform. Based on the platform developed for Bank Leumi’s fully mobile bank Pepper. The combined effort blends Pepper’s product base with Temenos’ core banking platform and is deployed on VMware’s cloud infrastructure, either in the public cloud or on premises.

“What Bank Leumi wants to do is to take this and sell it to banks worldwide,” Ms. Dash said.