Fintechs Unlocking Growth with Huawei Cloud

Huawei Cloud understands the “what” and “how” of financial growth, having been on its own rapid growth journey in recent years. In the finance sector alone, it has become the trusted cloud service provider of over 500 customers worldwide since launching in 2017. Just in Thailand, Huawei Cloud services six of the top 10 banks in areas that include core banking, mainframe migration to the cloud and mobile applications.

Du Chao, Huawei Cloud director of marketing and solution sales Malaysia, said this footprint provides insight into what successful fintechs need from the cloud.

“We find companies using the cloud can be more responsive to the market through cloud innovation,” Du said. “They can also apply big data and AI technologies for risk control and leverage flexible infrastructure to quickly meet regulatory compliance requirements.”

Huawei Cloud’s fintech customers are using its cloud services in different ways:
● One of the top fintechs in Africa is processing 40 million transactions every day.
● One of China’s top internet banking companies is defending against 3 million fraud attacks every year.
● The first digital bank in Singapore increase its security compliance which is fully deployed on public cloud by acquiring ceritification from the Monetary Authority of Singapore.

Huawei Cloud offered insights for fintechs at the recent Huawei Cloud Summit Malaysia 2023. Du said Huawei Cloud was on a mission to help fintech companies provide faster and more secure financial services. This comes down to delivering three key things fintechs need.

1. Agile innovation
Agility is now critical for fintechs that need to process high transaction volumes every day. One Huawei Cloud customer, a top Africa-based fintech, handles 40 million requests per day and has strict low latency requirements to guarantee seamless user experiences during payments.

“Our global infrastructure and optimized network helped this customer reduce latency from 150 milliseconds to 80 milliseconds in Africa,” Du said. “In ASEAN, our network quality is even better; we have data centres in many regions, which guarantee no more than 50ms latency in most of the places in this area to Huawei Cloud.”

Like many other fintechs, this customer also needs to leverage rapid large scale out infrastructure to meet high concurrent transactions during peak times. Huawei Cloud has been able to meet that need with its cloud container service.

“With Huawei’s Cloud Container Engine, a fully managed Kubernetes service, and Cloud Container Instance, a serverless container engine, customers can scale-out 4000 pods within 30 seconds, helping this top fintech company to process over 40 million requests per day,” Du said.

One of China’s leading property insurance companies is another example of fintech agility in action. Having experienced rapid growth in its insurance policy data, this customer needed to seek out a high-performance database service to meet concurrency scenarios.

“The leading insurance company is using our MySQL-compatible, enterprise-grade database, GaussDB (for MySQL). This improves database performance by 7 times compared with open source database MySQL, and delivers the same user experience even in a scenario of a million queries per second. For reliability, we can guarantee the recovery point objective (RPO) equals zero and a recovery time objective (RTO) within seconds.” Said Du

2. Smart risk control
Managing fraud risk in real time is another key consideration for fintechs. “All financial institutions need to be able to better identify customer transfer paths and money laundering behaviours effectively and to improve the capability of credit risk control,” said Du.

Huawei Cloud’s Graph Engine Service (GES) has been built to help financial institutions monitor complex real-time transactions, so they can make better decisions and prevent fraud. Du said its financial risk control model, tested by banking institutions, can deliver clearer information faster.

“GES can support searches with a bigger scope — over five transactional hops — and show a clear money transfer path,” Du said. “GES also supports high performance, with dataset of 10 billion nodes and 100 billion edges, it can respond to a six-hop query in seconds and reduce loop detection time from 10 minutes to 1 minute.”

Intelligent call centre capabilities can also help banks boost post-loan risk management efficiency. Du said that Huawei Cloud works with partners to integrate intelligent loan collection capabilities into call centres to improve efficiency and reduce manpower cost.

“Huawei Cloud also benefits from Huawei’s 30 years’ experience in the telecommunications industry. Our customers in the financial sector can use our experience to help customers optimise wireless network and office network performance to reduce the time needed for network deployment from months to weeks.”

3. Security and compliance
Security and compliance are the final key consideration for today’s fintech customers.

“Huawei Cloud believes investing more in our security equipment and expert teams,” Du said. “We also have security centres to support customers 24/7, and have achieve many national, industry and international compliance certifications.”

Du said Huawei Cloud’s platform, for example, has a total of seven layers of defence. This includes a physical security layer around its T3+ standard equipment rooms, which include identity security and strict controls around access to cloud platforms.

“In addition, we have an intelligent centre called SecMaster,” said Du. “It has a comprehensive and self-study library and can automatically detect and fix 99% of attacks within five minutes.”

Huawei Cloud has also achieved over 130 compliance and regulatory certifications around the world and in different industries.

“That includes being compliant with Malaysia’s Personal Data Protection Act and following all guidelines for financial providers moving to the cloud,” Du said.

In Malaysia, Huawei Cloud aims to become the best partner of financial service organizations, and provides innovative, trustworthy, and secure products and services to support their business success.