UnionBank aims to be fully hosted in the cloud

By on May 29, 2021 0
Amazon Web Services Inc. said Union Bank of the Philippines will migrate its on-premises IT infrastructure to the world’s first cloud by 2022. The migration aims to accelerate the digital transformation of the bank, improve digital banking experiences for clients and strengthen financial inclusion in Philippines by bringing financial services to remote areas of the country. UnionBank will also achieve a cloud-only IT transformation strategy, becoming the first major bank in the Philippines to be fully hosted in the cloud. Today, 70 percent of the 110 million Filipino citizens live without access to financial services, according to the Milkin Institute. Using AWS’s proven infrastructure and capabilities, including containers, compute, storage and databases, UnionBank is creating new digital banking experiences, accessible from mobile phones, that will scale to deliver to millions Filipinos have access to financial services, including wire transfers and cash withdrawals, even in very remote areas. UnionBank’s digital metrics gained ground this year, with strong first quarter results compared to the same period last year. Almost 60,000 new digital bank accounts were opened each month, an increase of 4.37 times over the same quarter last year. Digital transactions grew 380% compared to the same quarter last year. UnionBank uses Amazon API Gateway and Amazon Elastic Container Service to build new mobile banking products with microservices that support any application architecture, regardless of scale, load, or complexity. The bank has integrated “Know Your Customer” (eKYC) electronic capabilities into its mobile application, allowing customers to submit documents digitally to open a bank account rather than by mail or by visiting a physical branch. Customers can also use the app to transfer money to other banks and deposit checks simply by taking a photo of the check. Once the migration is complete, UnionBank will run nearly 400 mission-critical applications on AWS, including Finacle Core Banking and SAP HANA Enterprise Cloud, to further modernize its IT infrastructure, improve operational efficiency and innovate new services. By scaling its SAP workloads on demand using AWS, UnionBank expects to reduce infrastructure maintenance and operating costs by $ 1 million over the next five years. UnionBank is also migrating over 900 virtual machines to VMware Cloud on AWS. As a result, she hopes to generate more than 30% savings over five years and generate a return on investment in less than 18 months. In addition, the bank expects to benefit from increased staff productivity, reduced unplanned downtime and increased business agility through the faster deployment of new external applications. To accelerate its digital transformation by strengthening cloud mastery across the organization, UnionBank is investing in a cloud training program for staff. The bank offers training courses designed by AWS Training and Certification to more than 500 employees, including in-depth technical training for IT staff and cloud fundamentals training for business stakeholders. The program is also designed to foster a learning culture to help UnionBank achieve its cloud-only IT strategy faster, guided by robust IT risk management, data protection, data governance and cybersecurity frameworks. . “UnionBank uses AWS to provide banking services to the millions of people in the Philippines who need access to financial services to improve their lives,” said Dennis Omila, executive vice president and chief operating officer and information officer at UnionBank. “The breadth and depth of the world’s leading cloud provider allows us to launch new financial services more quickly, including mobile banking on wheels to expand financial inclusion in remote areas and help Filipinos around the world perform. digital banking. Now more consumers, farmers, fishermen and local businesses will have access to the tools to help better manage cash flow, making it easier to send and receive payments, ”he said. “Southeast Asian banks are embracing the cloud to exceed their customers’ expectations, seize new opportunities opened up by changing regulations and meet the challenges posed by the ongoing pandemic. These companies are ultimately recognizing the cloud as a business and technology catalyst, ”said Conor McNamara, Managing Director, AWS ASEAN. “By moving its infrastructure to AWS, UnionBank gains access to an unrivaled portfolio of cloud services to deliver new financial solutions and experiences and quickly and at scale solve important customer issues while reducing operational costs. We are excited to work with UnionBank to create an end-to-end cloud-based digital banking experience that will help support access to more financial services in the Philippines and enable core banking services from anywhere, ”said McNamara.

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