IBS Journal January 2017


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Mambu’s technology also enables us to rapidly bring new products (such as our recently-launched easy-access accounts) to market and focus our innovation around giving our customers great products and services with a level of agility we couldn’t get from a traditional core banking system. Our customers can open a savings account with us in three minutes or less on average – this is dramatically different to what you find at the large High Street banks.


IBS Journal: Last year, OakNorth became the first bank in the UK to have its core system fully hosted on the cloud. You wanted to launch on the cloud, but because there was no policy on cloud banking in place, were unable to. Could you talk us through the transition from running Mambu’s software on traditional servers to running it on AWS cloud


infrastructure?


FG: As Mambu was originally developed for cloud, interestingly the biggest challenge was to set up our infrastructure to work in a traditional hosting setting. We worked with them and a number of partners to integrate Mambu with other non-cloud applications. We developed the features required to operate compliantly in a UK environment thus creating a self-contained banking set up. Once we were able to make the transition to cloud, we then worked closely with Mambu and Amazon Web Services (AWS) to ensure a seamless migration. Given Mambu was already cloud ready, the main challenges were around setting it up in our private cloud, as most of their clients make use of the Mambu shared cloud.


IBS Journal: Regulatory compliance has historically been one of the top factors against cloud banking. The FCA’s cloud guidelines are therefore key here. Atom Bank’s Mark Mullen recently called the FCA, “one of the most far-sighted regulators on the planet.” Would you agree? Will other regulators follow


suit?


FG: In a number of ways, the FCA is very forward-looking. Look at banking competition for example; since its inception, the FCA has taken significant steps to improve competition in the UK banking industry and make it easier for new players to enter the market. An example that springs to mind was the launch of the New Bank Start-up Unit last year. Clearly its efforts haven’t been in vain as a number of new banks have been granted licenses since Metro Bank in 2010, and it’s in talks with 20 more institutions. This compares with the US where only four new licences have been granted since the financial crisis.


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From a technology perspective, the FCA paved the way for banks, insurers and other financial services companies to take advantage of cloud computing when it published its proposed guidance on it in November 2015. We took advantage of this and worked with the regulator and AWS to help shape policies relating to data protection, access to data, security and business continuity. Two months after we moved to the cloud, the FCA published its final guidance on it and had a real-life example to demonstrate it in practice.


The FCA wasn’t the first regulator to give cloud banking the go ahead, however; the Dutch banking watchdog, De Nederlandsche Bank (DNB), approved the use of AWS several years ago, and in the US, cloud banking guidance was published in 2012.


IBS Journal: What were the key reasons for running with AWS cloud?


FG: We chose AWS as our cloud provider for a number of reasons: •


Bigger in this case was better: We were confident that AWS’ efforts towards security, its reputation and scale would be looked upon favourably from a regulatory standpoint.


•


State-of-the art infosec: AWS has a large number of certifications and because of its scale, is able to implement state-of-the-art infosec.


•


Global infrastructure: It is able to provide us with a global infrastructure (India, UK, etc.) under one umbrella that we wouldn’t be able to match on our own. The way it is set up allows us to maintain data sovereignty, which will be particularly relevant as we look to expand into foreign markets.


Flexibility: It gives us the flexibility to scale at our own pace – we pay for the products and services we’re using right now, rather than paying for things we think we’ll need in the future


•


Customer service: Our account manager was extremely supportive and helpful throughout the process.


IBS Journal: What has been the experience thus far? FG: So far, the experience has been very positive; on the retail


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