This year, the focus goes beyond technology to mining business insights around how cloud enables strategic industry trends such as Open and Virtual Banking and Insurance, Security and Compliance, Data Analytics and AI/ ML, FinTech and RegTech, Surveillance and more through sharing of best practices and use cases. In sessions led by customers, partners, industry leaders and AWS subject matter experts, you’ll learn how AWS helps financial institutions to focus on the innovation and outcomes that truly drive business forward. Business stakeholders, market makers, and technology owners will all learn something new, valuable and actionable.

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Open Banking on AWS
Patrick Lam
RBWM CIO Digital, Asia Pacific
HSBC
Sebastien Linsolas
Solutions Architect, Global Financial Services
Amazon Web Services
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Agenda
Evolution of Open Banking
Customer Use Case – HSBC Open Banking
Wrap Up

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Open banking is moving from an obligation
to a strategic opportunity

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Open banking is now the standard, by mandate and by choice
1. Hype Cycle for Open Banking APIs, Apps and App Stores, Gartner 2015
2. National Australia Bank, Commonwealth Bank, Australia and New Zealand Banking Group, Westpac
Banks that want to transform are embracing open banking – and it’s quickly spreading across the globe.
50% of G20 countries expect to release open banking standards by year-end 20181.
OPEN BANKING STANDARDS
Enacted
Active consideration
Australia: The four major
banks2 in Australia must make
banking data available to third-
party providers by June 2019.
Mexico: FinTech Law
requires Mexico to
publish an open
banking standard by
March 2020.
USA: Industry groups
developed frameworks
for common open
banking standards
Japan: Bank of Japan
amended the Banking Act,
calling for 80 Japanese
banks to open their APIs by
2020.
Brazil: The central
bank is advancing
with the design of
an open banking
model.
Singapore: Monetary
Authority published an API
framework for governance,
implementation, use cases,
and design principles.
Europe: UK CMA Open
Banking Standard
and EU PSD2 came into
force in January 2018.
Hong Kong: The Open API
Framework includes a four-
phase approach for banks to
implement open API functions.

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Elevated customer expectations are driving the shift
Build a technology
ecosystem
Enable continuous delivery
across portals and devices
Integrate FinTech into
the banking value chain
Open banking is an opportunity to create better customer experiences
Aggregate customer
and transaction data
Open banking is more than compliance. Consumer expectations are pushing banks to build open APIs –
67% of financial customers say they would share more data with banks in return for new benefits1.
1. Accenture Financial Providers: Transforming Distribution Models For The Evolving Consumer 2017 study. https://www.accenture.com/us-en/insight-financial-services-distribution-marketing-consumer-study
Open new distribution channels for
bank products and services
Personalize offers
and messages

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Yesterday’s tech can’t power today’s advances
Open banking is more secure, scalable, and cost-effective in the AWS Cloud. The advantage for
banks in the cloud lies in taking control of, and analyzing, large volumes of new data received
from consumers and partners, via open APIs.
On premises IT limits open banking1.
Difficult to aggregate and analyze
high volumes of bank data
Less agile, lengthy time to market
Difficult to scale
And legacy IT isn’t the only challenge2.
1. “Payment services” https://ec.europa.eu/info/business-economy-euro/banking-and-finance/consumer-finance-and-payments/payment-services/payment-services_en, The European Commission, 2018
2. The nine mandated institutions in UK (referred to as the CMA9) are: Barclays plc, Lloyds Banking Group plc, Santander, Danske, HSBC, RBS, Bank of Ireland, Nationwide and AIBG
Need to adhere to regulatory
requirements
Need to ensure security of data
Need to scale to meet demand from
consumers, and third-party
applications, for access to data

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Customer Use Case - HSBC
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Hong Kong Open Banking Background
One of the seven Smart Banking initiatives from Hong Kong Monetary Authority (HKMA)
Why HKMA has encouraged Open Banking?
Ensure Competitiveness
and Relevance of the
banking sector
Develop Innovative banking
services to improve Customer
Experience
Keep up with International
Developments in banking
services
The above key benefits of Open Banking can be reaped only if it is widely, securely and cost-effectively
implemented in the banking sector.
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Open Banking
What is an API?
API is application programming interface, it is a set of procedures and functions allowing applications to access
features or data of an operating system/ another application or other service.
What is the difference between Open and Private APIs?
Internally, HSBC has many private APIs allowing communication between different systems. By making an API open,
it means that we will publish the API specification and document publicly, so that other third party developers will
be able to access.
What is Open Banking?
Open Banking refers the the use of Open API that enable third-party developers to build applications and services
around financial institutions.
Corporate
partners
Open API:
Third Party Service ProvidersThird Party Service Providers
Third Party Service Providers
Third Party Service Providers Third Party Service Providers
Third Party Service Providers
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Hong Kong Open Banking Phase Implementation
4 phases are suggested for Open Application Programming Interface (API) for the banking industry in Hong Kong.
Phase 1
Jan 2019
Phase 2
Jul-Oct 2019
Phase 3
TBC by Jul 2019
Phase 4
TBC by Jul 2019
Product and Service
Information
Information Retrieval
only
Cover bank products
and services
Subscription and new
applications for
product/service
Customer acquisition
Online submission /
applications of bank
products
Account Information
Retrieval and alteration
of account information
For authenticated
customers
Transactions
Banking transactions
initiated by authenticated
customers
Cover payment or
scheduled payments /
transfers
18 Jul 2018
Framework
HKMA issue Open API
Framework for the
Hong Kong Banking
Sector
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Yesterday’s tech
can’t power today’s advances
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Legacy IT isn’t the Only Challenge
TSP (Third Party Service Provider) Due diligence/certifications
UK Open Banking has a central party to manage the
third party service provider but not the case in HK
Regulatory
Need to follow the features/timeline coordinated by
HKMA
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On Premises IT Limits Open Banking
Difficult Scalability
How to handle adhoc capacity? (ie.
Campaign)
Lengthy Time to Market
How to build the infrastructure quickly ?
Security
How to make sure the services and data are
managed securely ?
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Technical Solution using AWS Cloud
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High Level Components
Third Party Service
Providers (TSP)
Individuals
Banks
Data
TSP
Services
Cloud Service Provider
Criminals
TSP
Credentials,
Token
Visiting
Patterns
API,
TLS,
Certificates,
Geo Location,
Encryption,
Resilient,
Availability,
Maintainability
Audit log,
Encryption,
Access Control,
Version Management
Service
Lookup
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Technical Deliveries
Developer Portal for Partners’ Development HSBC - https://developer.hsbc.com.hk
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Benefits Building Open Banking on AWS
• Improve performance across locations
• Send tailored and timely content
• Accelerated the development of Phase 1
• Managed CI/CD DevOps pipelines
• API-driven infrastructure
• Elastic and scalable environment
• Encryption
• DDoS Protection of Infrastructure
• Secure logging and audit capabilities
• Access to data and audit reports
• Programmatic evaluation of controls and adherence to policies
Customer experience
Reporting & AuditingAgility
Security

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Success to the delivery - Collaboration
Collaboration across teams/partners/CSP
- Using Cloud Native Technology (e.g. Serverless Technology, Infrastructure as Code)
- Able to deliver new value added services to consumers
Third Party Service Providers (TSP) Banks
Cloud Service
Providers
Regulators
(e.g. HKMA)
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Wrap Up
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Why build open APIs on AWS?
With AWS, financial institutions can meet regulatory requirements while developing new
business models – by building a secure, scalable, innovative platform for open banking in
the cloud.
Implement high
levels of security ✓Authenticate and
authorize requests
✓Enable throttling and
protect against DDoS
attacks
✓Scale APIs based
on demand
Build unified APIs on
multiple microservices
✓
Innovate faster
with 125+ AWS
services

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AWS has the technology banks need to build open APIs
*Not an exhaustive list of AWS services
Infrastructure Amazon EC2
Elastic Load
Balancing
AWS Auto
Scaling
Data Lakes & Analytics Amazon S3
Amazon
Redshift
Amazon
Kinesis
Open APIs
Amazon API
Gateway
AWS Lambda Amazon EKS
Monitoring & Reporting AWS CloudTrail
Amazon
CloudWatch
Amazon
QuickSight
Customer Experience AWS Mobile
Amazon
Pinpoint
Amazon
SageMaker

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And AWS provides the security that open banking requires
Infrastructure
AWS Systems
Manager
Amazon Virtual
Private Cloud
AWS Direct
Connect
DDoS & Encryption AWS Shield
AWS Key Mgmt
Service
Data Encryption
Keys
Data Protection
AWS
CloudHSM
Amazon
CloudFront
Amazon Macie
Monitoring & Control
Amazon
GuardDuty
Amazon
CloudWatch
AWS Config
Identity & Access
AWS Identity &
Access Mgmt
AWS Secrets
Manager
Amazon
Cognito
*Not an exhaustive list of AWS services

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Build your open banking platform in a matter of weeks
1
2
3
Talk to the AWS Financial Services team – AWS can help
you review the regulatory requirements in your country.
Build your APIs – an AWS Solutions Architect can
create your open API architecture.
Define your strategy for building modern API
environments in the cloud.

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Q&A
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27. Thank you!
© 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Patrick Lam
Sebastien Linsolas