Finastra, one of the world’s largest fintechs following the merger of D+H and Misys back in 2017, has released Fusion Data Cloud, a next-generation data platform that allows fintechs to develop innovative data solutions at speed, and financial institutions to take advantage of technologies including AI, machine learning (ML) and business intelligence (BI).
Fusion Data Cloud is built on Finastra’s FusionFabric.cloud, an open and collaborative development platform and application marketplace based on Microsoft Azure technology. Fintechs can visit the platform and access its data schema and sample datasets to build solutions and integrate them with Finastra’s core busines systems. Finastra then handles the process for fintechs to sign data sharing contracts with financial institutions that want to take advantage of the fintech’s capability. The company offers fintechs a range of commercial options, such as revenue share and reselling.
Fintechs and Finastra also have the ability to use the data platform’s AI, ML and BI capabilities to train and deliver solutions initially based on sample datasets from financial institutions.Amber Sappington, head of data and analytics at Finastra, says: “By opening up our platform, fintechs can innovate in days and weeks, rather than months and years, as they have access to our structure and data. We can get solutions to clients quickly and clients can build relationships with fintechs. From a business perspective, the design of Fusion Data Cloud helps financial institutions leverage their data to grow revenue, manage risk, and reduce operational costs.”
With financial firms experiencing the impact of Covid-19 and producing more data as a result of accelerated digitalisation, the arrival of the Finastra data platform is timely. Sappington comments: “Covid changed the timeline and increased the necessity of going digital. This is the right time to leverage data to grow revenue and optimise operations costs.”
The first capital markets solution that taps the data sharing and ML capabilities of Fusion Data Cloud is Vector Risk Service. It is designed to help financial institutions meet the requirements of the Fundamental Review of the Trading Book (FRTB).
Justin Taylor, managing director at Vector Risk, says: “Without access to Finastra’s Fusion Data Cloud, we would need to take each institution’s unstructured data, understand it, clean it, and apply a structure. This could take many months, if not years to achieve. With Finastra managing the data securely for all, it’s a win-win for all parties.”
Vector Risk is one of six applications on the platform in its launch phase, but more are in the pipeline. Pedro Porfirio, global head of capital markets at Finastra, says: “Fusion Data Cloud will accelerate Finastra’s platform strategy by allowing our clients to quickly expose data needed for fintechs to deliver state of the art functionality. We’re excited by the potential this offers and have identified a number of use cases across financial industry verticals. Among these, in the treasury and capital markets universe, are uses for regulatory reporting and collateral management. One specific live example is delivering market and credit risk measures as a full service using the Vector Risk app.”