The Promise of Blockchain for Enterprises in Financial ......REST API SDKs for Go, Java, and Node.js...

The Promise of Blockchain for Enterprises in Financial Services

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Matthew BaldwinDirectorOracle Cloud Innovation

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Program Agenda

Enterprise Blockchain Landscape

Financial Service Initiatives

Capabilities and Advantages of Oracle Blockchain Platform

Summary and Next Steps

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 4Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Why Blockchain for the Enterprise?

Trusted TransactionsWithout Intermediaries

Reduced Costs

Faster Processes

Real-Time Transaction Visibility=

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 5

Multiple Use Cases Across Industries for Blockchain

• Increase supply chain transparency

• Reduction of counterfeit goods

• Warranty management

Retail & e-Commerce

• Clearing and settlement

• Domestic and cross-border payments

• Loan origination and post-funding automation

• Fraud prevention

Finance

• Supply chain finance• Track and trace

ownership transfer• Compliance

monitoring

Logistics

• Clinical trial management

• Privacy and sharing of patient health records

Healthcare

• Asset management• Certification of

renewable energy and emission allowances

• Metering and billing

Energy


Program Agenda





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• Payments– Cross-border real-time funds transfer among

subsidiary entities

– Seamless B2B payment handling for corporates allowing better recon/transparency/speed between invoice and payments

• Consumer Banking– Cross-border loyalty program, multi-brand loyalty

– Loyalty balance reconciliation across vendors, merchants, etc.

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• Trade Finance & Business Banking– Invoice factoring data collection and correlation

– Letter of guarantee and other documentary processes

– Buyer’s Credit for cross-border trade

– Supplier financing linked with shipping information

• Other– Merchant acquisition transaction reconciliation

– Loan securitization (e.g., mortgages) & value tracking

– Intercompany accounting & reconciliation

Key Financial Services Customer Use Cases


Payments: Cross Border Funds Transfer for Subsidiaries

• A large bank with multiple regional subsidiaries

• Current cross-border transfers between the subsidiaries use SWIFT services, which

– Are not real-time and require too many manual interventions

– Charge fees and other expenses

• Blockchain benefits

– Smart contracts enable automated transfers based on rules

– Real-time handling of transfers

– Integrated audit trail of transfer requests and confirmations, available to clients through mobile and Internet banking interfaces

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Copyright © 2018 (ICSFS) ICS FINANCIAL SYSTEMS LTD; All rights reserved. No Part of this document may be reproduced or transmitted in any form or by any means without prior permission in writing from I.C.S.F.S (ICS FINANCIAL SYSTEMS LTD)

Cross-Border Payments using Oracle Blockchain Use Case


Cross-Border Payments Using Oracle Blockchain

▪ Enhanced Customer Experience▪ Real-time vs. same day use of funds▪ End-to-End payments tracking▪ Remittance information unaltered / Undeleted▪ No single point of failure.▪ Data Privacy (no intermediaries) ▪ Cost Reduction (no intermediaries) ▪ Tamper-proof security

Business Needs:


Cross-Border Payments Using Oracle Blockchain

A middleware that provides seamless integration between:▪ Oracle Blockchain Service running on trusted shared

fabric of common information▪ Oracle REST APIs▪ ICS BANKS® Core Banking & other banks▪ ICS BANKS® Digital banking platform▪ Sanctions compliance systems & AML

ICS BANKS Blockchain Adapter


ICSFS Blockchain Solution

Oracle Blockchain Cloud ServicesAML

ICS BANKS Digital Banking

Payment AgentATM Internet BankingKiosk Mobile/ Tablet Banking SMS Banking Wearable Banking

ICS BANKSUniversal Core Banking

REST APIs for Integrations

AdministrationDynamic Configuration,

Monitoring and Troubleshooting

Blockchain Nodes & Containers

ICS BANKS Blockchain Adapter

PaaS

SaaS

REST

gRPC

On Premises

REST

gRPC


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Deploying Cross-Border Payments Using Oracle Blockchain

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Core Banking AML BC Connector

BANK 1

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BANK 2 BANK 3

High LevelArchitecture


Payments: Seamless, Near Real-time B2B Payments from ERP

• Replace Batch File-based Integration with Blockchain

– Real-time

– Auditability & Tracing

– Non-repudiation

• Execute payment orders and report status in real-time

– Intra-day settlement and liquidity for corporate customers

• Across multiple countries

– Better customer experience for multi-nationals

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 15

Business/Trade: Bank Guarantee on Blockchain

BanksVendors

• Current Bank Guarantee process is paper based and manual

• Beneficiary is dependent on the Vendor for interactions with the Banks– Lack of transparency between all parties leads to discrepancies – Potential tampering requires extra verification– Lack of tracking complicates amending or invoking

• Significant manual effort, cost, and delays

Beneficiary

Blockchain to streamline the process

• Trusted network for authorized transactions

• Direct interactions

• Verification of the digital BG

• Irrefutable BG records

• Real-time status visibility

• Reduced manual effort


Business/Trade: Buyer’s Credit for Cross-Border Trade

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Blockchain Benefits• Faster turnaround and funds availability

– Automatic loan creation– Automatic liquidation of bill under LC– Automatic liquidation of Loan Contract

• Cost savings– SWIFT msg reduction– Less manual effort

• Single source of truth – Greater visibility– Avoids human errors by automating loan

creation, liquidation, and bill liquidation

Current Challenges• Multiple versions of truth, discrepancies requiring research and reconciliation• Reconciliation effort on Nostro – Vostro accounts• Manual operations in Loan Creation, Bill Liquidation, etc. with possibility of human errors• Processes are long, redundant and expensive• Potential delays in obtaining funds


Business/Trade: ERP-Integrated Trade Finance Blockchain

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Banks, buyers, sellers, carriers, insurance providers and government agencies can process Trade Finance requests and operate financial instruments, track shipments, trigger payments etc. on permitted private channels.

Benefits✓ Reduce the time and costs✓ Eliminate cumbersome

offline reconciliation✓ Reduce fraud risks (>15B/yr

in documentary fraud)✓ Eliminate data tampering


Abstract:

• A vendor that can receive money in advance from the Bank by sharing his accounts receivables (issued invoice).

• At the same time, the solution gives visibility by tracking the products, which means less risk to the Bank.

Benefits

• Liquidity for the vendor

• Risk Management for the Banks

Business/Trade: Invoice Factoring


Consumer: Global Loyalty Network (GLN)

Enhance Customer Experience• Can use your country points in other countries.• Typical use cases – payments, offline/online

shopping, remittance• No complex transfers that take weeks or months to

complete

Increase Operational Excellence• All participating companies simultaneously store

identical transaction data -> enables accurate settlement without additional reconciliations

Create Business Value• Good way to consume debt• New business model based on exchange of digital

currencies between global financial institutions• Your customers → My customers→ Our customers

Bank-anchored global integrated platform that offers cross-border use of loyalty points and benefits around the world to card users

BENEFITS


Consumer: Mileage to Opportunity Exchange Platform

Enhance Customer Experiences

Create Business Value

Increase Operational Excellence

Using Blockchain, all participants simultaneously manage identical transaction data for mileage status, mileage history per customer without additional reconciliation.

Can swap your transportation mileage for commercial loyalty points.

• For transportation company → Debt to revenue

• For operating company, new business model based on exchange of different loyalty programs

Providing global integrated mileage platform that converts insufficient transportation mileage into new opportunities.

Mileage

Points

ICO tokenTransportation

Companies

RetailCompanies

Integrated Mileage Blockchain Platform


Blockchain Cloud Service

Loan Securitization Using Blockchain

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SolutionEnd to End automation via a blockchain and smart contracts • Provides the same view of data to both parties• Uses smart contracts to verify and alert on the

changes in data to act• Automates securitization reconciliation process • Continuous cash flow projections and reporting

Benefits• Provides strong audit trail • Improves efficiency and reduces processing cost• Reduces errors and manual processing• Can maintain near-real time valuations based on payments data• Enables real-time integration with core systems and reporting

Oracle Confidential – Under NDA


Program Agenda





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• Fast to provision

• Easy to configure changes

• Quick to onboard new members

• Fast to develop & test smart contracts and integrate applications

• Performance and scalability

• HA and operational resilience

• Security and confidentiality

• Plug-n-Play enterprise integration

• Supportability and management

• Policy-based governance

Enterprise Demands from Blockchain Platforms

Rapid Experimentation Production-Ready

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Delivering Enterprise Grade Capabilities

Performance at ScaleParallel executionElastic scale-outMuch faster world-state DBAuto-tuning and dynamic scaling

Operational ResilienceHigh availability VMsAutonomous recovery agentsContinuous backup to object storeMulti-AD and multi-region DR

Security & ConfidentialityIntegrated identity managementIdentity federationData encryption at-restCertificate revocation managementFine-grained access control mechanism

Supportability & OperationsDynamic configurationMonitoring dashboardsZero-downtime managed patching Multi-datacenter deploymentsGovernance for consortia

Development & IntegrationSQL-based rich queriesSynchronous & async REST APIsJava, GO, and Node.js SDKsEnterprise App AdaptersRich queries for history DBAnalytics integration Data modeler, IDE, Java chaincodeDev mode testing with cloud Peer

Italics – planned enhancements


Pre-Assembled

Enterprise-Grade

Plug and Play

Open

Oracle Blockchain PlatformHardened for enterprise applications

Oracle Blockchain Cloud Platform

Oracle Cloud Infrastructure and PaaS Services

Container Services

Identity Management

EventsManagement Services

Data Services

Governance*

Consensus

Smart Contracts Confidentiality

REST API SDKs for Go, Java, and Node.js OIC Adapters

Distributed Ledger

Open Source Hyperledger Fabric

Oracle-managed PaaS

On-Premises AppsSCMERP HCM CX

Oracle SaaS

CRM3rd Party SaaS

Custom Cloud Apps

Hyperledger Fabric Peers in customer data centers

or 3rd party clouds

Pre-Assembled

Open

Enterprise-Grade

Plug-n-Play Integrations

*coming soon


Ease of Integration and Systems of Record Connectivity

NEW SAAS BLOCKCHAIN APPLICATIONS

• Supply chain track & trace use cases and more

• Oracle GBU applications in selected industries

ORACLE INTEGRATION CLOUD

• Adapters for Oracle & 3rd party applications in cloud and on-prem: ERP, SCM, CX, HCM…

• Technology adapters (MFT, JMS…)

• Turn application events into REST calls to run blockchain transactions

REST API-DRIVEN INTEGRATION

• Invoke txn’s in sync & async mode

• Get txn status

• Register event callback URL

• Query ledger data

• Provisioning API

• Operations/Configuration APIs

JAVA, GO, AND NODE.JS CLIENT SDKS

• Invoke txn’s asynchronously

• Get txn status

• Query ledger data

• Subscribe to events

• Add channels/peers

• Enroll new members

Apps Apps


Comprehensive Blockchain Platform

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Membership Service

Membership Service

Applications

Validating Nodes/ Peers

Distributed Ledger (Single Version of Truth)

Smart Contracts (aka Chaincode)

Ordering Service

Ordering Service

REST Proxy and Operations APIs

Operations

Admin/Operations Console

Integrated backplane of supporting services

Oracle value-add

Rich integration tools for SORs & new apps

App

App

SDK

REST proxyREST

Flexible, global, interoperable deployments

P P

P

Pre-assembled Dependencies

SQL-based rich queries over K-V ledger

SQL

Automated DevOps in Oracle-managed PaaS


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Learn More

http://oracle.com/blockchainhttp://cloud.oracle.com/blockchain

http://developer.oracle.com/blockchainThank You!

The Promise of Blockchain for Enterprises in Financial ......REST API SDKs for Go, Java, and Node.js...

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