First rapidly deployable Monte Carlo Simulator for Financial Services Industry

December 1, 2021 | 3 minute read
Joaquín Sanroman Pereira
Master Principal Solutions Architect
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Oracle Cloud Infrastructure (OCI) has created the first Monte Carlo simulator to be deployed in "one-click" for the Financial Services Industry to accelerate cloud adoption and support banks in the mission-critical HPC applications migration.

Decades of experience, deep business background, and the best HPC services and hardware offering allow Oracle to make the difference in high-frequency trading, monte carlo simulations, payments, fraud detection, cyber security, risk calculation, etc.

Monte Carlo simulation is a crucial tool for banks, insurance, asset managers, and other financial institutions to perform a wide range of different analyses and evaluations (e.g., liquidity positions, cash flows / DCF analyses, risk, regulatory, compliance).

Regulatory agencies across all FSI segments are demanding a higher degree of certainty of outcome from models. Financial Institutions must deal with the growing complexity and importance of this type of analysis. 

Transformation in any case

Based on the cloud maturity level of the institution, there are different options to perform this calculation. However, there are mainly on-prem-based solutions, and only in a few cases have we observed an industrialized approach.

The Monte Carlo simulator opens the door to a new HPC FSI architecture where less is more.The simulator was build on a client-first approach, allowing them focus on just business. It decreases operations complexity with a complete automated infrastructure deployment that perfectly matches DevOps environments and will enables the client to dynamically adapt the infrastructure to their business needs.

In terms of price, Oracle Cloud Infrastructure is cheaper than its competitors. We have built a containerized solution that allows us to improve the cost optimization and achieve much better results in scalability and deployment timing. Moreover, the simulator has been fully tested over any Intel and ARM compute instances increasing the performance and reducing even more the cost.

Workload architecture

Once the most common use cases and the key architectural aspects are identified, we have an open-source architecture already built that allows you to avoid vendor locking and save on any license cost, guaranteeing the performance through our dedicated and specialized hardware.

Mission-critical applications have local regulatory requirements in scalability and disaster recovery that are fully covered by the multi-region and multi-tenancy deployments allowed. Also, container implementation will enable you to run any quantitative library independently of the language (Java, Python, C++, C#, etc.)

Lift and shift enable organizations on the cloud but waste many of the potential savings you can get rearchitecting the application to a more cloud-native approach. Compared with the common legacy architectures, applying this reference architecture can help you to achieve 35-45% of potential savings.

In addition, to the collaborative effort of this architectural exercise, our simulator also decrease the operations complexity and accelerate the cloud addoption.

Conclusions

Today, banks are executing today a mandatory transformation process to keep on top of the Financial Services industry. Transactionally, low latency, significant volumes of data, and complex regulatory requirements are some of the most critical points of the business.

Our FSI strategy pass through creates specific FSI portfolio services and assets to support banks in evolving their global architectures and accelerating cloud adoption.

Moreover, our Oracle Cloud Infrastructure HPC offering can alleviate many popular issues financial institutions often face, supporting them to achieve better performance at a lower price point. 

Joaquín Sanroman Pereira

Master Principal Solutions Architect

7 years of experience in Financial Services allowed me to achieve the strong needed business and hands-on technical background to lead complex Global Strategic FSS programs resulting in a strong proven experience leading global transformation programs on multidisciplinary/multicultural environments.


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