BNP Paribas has committed to joining the IBM Cloud for Financial Services as its anchor client in Europe. It is the first step in creating an ecosystem for the platform on the European continent.
Technology giant IBM (NYSE: IBM) has revealed that several financial institutions have joined the IBM Cloud for Financial Services Platform. Among those institutions is BNP Paribas SA (EPA: BNP). The technology giant made this known in a press release. BNP Paribas is one of Europe’s biggest banks, its joining the IBM Cloud for Financial Services serves as a sign that the cloud framework is robust.
IBM Cloud for Financial Services is a partnership between IBM and Bank of America Corporation (NYSE: BAC). The tech giant had announced in November last year that it was developing an out-of-the-box cloud solution for financial services.
Bank of America was the first collaborator to host its IT processes on the platform.
IBM Cloud for Financial Services Offers Range of Advantages
IBM Cloud for Financial Services runs off Red Hat OpenShift. It makes it the first financial services-ready cloud. There are several advantages that this brings. The operations of financial institutions can be quite complex. Outsourcing of the software needs often has problems of its own. The use of a cloud service that provides ready solutions solves these problems from the word go. It also provides a safe environment for financial institutions. Especially in a time of security uncertainty.
BNP Paribas has committed to joining the IBM Cloud for Financial Services as its anchor client in Europe. It is the first step in creating an ecosystem for the platform on the European continent.
The platform offers measures to ensure security. One of those is the Keep-Your-Own-Key (KYOK) feature. It allows for platform-wide encryption capabilities without the exposure of clients’ encryption keys.
MUFG Bank Is Interested as Well
IBM (IBM) is not resting on its oars either. The tech giant is also expanding the platform into Japan. This time, MUFG Bank (TYO: 8306) is looking at joining the IBM Cloud for Financial Services.
It brings the platform to the global stage. As the platform expands, it will fill a niche that many financial institutions have been waiting for.
It will also bring to a close the many logistical issues of deploying independent cloud infrastructure.
Howard Boville, Senior Vice President, IBM Cloud said:
“IBM is creating a platform with the goal that financial services institutions can address their regulatory requirements while creating a collaborative ecosystem that helps enable banks and their providers to confidently transact.”
This unique approach comes with the territory. Other industries have a less-stringent approach to regulation. Because of the sensitive nature of banking and finance, this cannot happen in the financial services sector. It also brings to light the importance of having a company that is sensitive to compliance needs. It differentiates the mediocre from the best.
As financial services continue to expand, strategic partners are needed. It will be interesting to note how the IBM partnership will fare in the future.
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