Financial institutions are great at collecting data, but they actually utilize less than 1 percent of what they have in-house, said Google executive Derek White. That’s a strong use case for enlisting cloud technology’s help clean and connect that data to the players in a market’s ecosystem.
Speaking Wednesday in a “keynote fireside chat” at FIA Boca-V, White said technology has evolved to the point that what was not possible a decade ago and required a high degree of human intervention, is possible now.
White, vice president of Global Financial Services for Google Cloud who joined the company from U.S. Bank less than a year ago, said he feels like “a kid in a candy store” given his current opportunity to create and connect cloud technology for financial institutions. “Bringing it to end-users is fascinating,” he said. The cloud is bringing innovation to business in more ways “than in anything else I have seen,” he said.
Trading strategies, clearing and settlement, data reporting, trade surveillance and regulatory reporting all are examples of innovation in the fintech space, according to White. He said he has been working with financial institutions on their control environments, helping them demonstrate to regulators from a reporting standpoint that they are in control, he said.
White also said an appetite at the top for learning and understanding how technology can power a business and the cultural transformation is key. “With any of the models we develop, whether it’s machine learning or artificial intelligence,” results are not instantaneous. They require a period of about 10 to 12 months to test and validate the data and determine what actions are needed to get the outcomes we are looking to drive, he said.
On the plus side, White said businesses find there is not an immediate need to retire their legacy systems, because they can connect to hybrid systems that incorporate the new technology, letting the organization iimplement the new technology faster.