CNS Financial Business Capabilities + AWS Cloud Capabilities
Optimized for business characteristics in banking, cards, insurance, etc.
Joint development of a Korean-style financial cloud model

LG CNS announced on January 31 that it has partnered with Amazon Web Services (AWS) to provide financial-tailored cloud services to expand its financial cloud business.
The two companies jointly developed a 'Korean-style financial cloud model' optimized for the business characteristics of six financial industries (banking, credit cards, life insurance, non-life insurance, securities, and capital) by combining LG CNS’s 20 years of experience and know-how in executing Korea’s best financial business projects, its top-tier cloud implementation and operation capabilities, and AWS’s global cloud capabilities.

The Korean financial cloud model is a cloud service model that reflects the characteristics of financial operations, IT policies, and relevant domestic laws and regulations.

For example, it is a cloud model that reflects the specific characteristics of each field, such as deposit/loan, foreign exchange, and agency services for banks; issuance and settlement services for cards; and face-to-face channels, new contracts, maintenance, and payment services for insurance, along with common areas of overall financial operations like non-face-to-face channels, asset management, and financial/risk management.

The Korean-style financial cloud model created by the two companies consists of private and publicIt is a hybrid cloud model that combines a public cloud.

We provide services to help financial companies successfully transition to the cloud, such as configuring areas like the account system, which contains important customer information including personal data, in a private cloud, and areas like the information system, which manages and analyzes transaction records, in a public cloud.

Both companies jointly provide comprehensive services ranging from cloud migration consulting to implementation and operation, enabling financial institutions adopting the cloud for the first time to transition easily and quickly.

With the revised Electronic Financial Supervision Regulations coming into effect in January 2019, the adoption of cloud services by financial institutions is expected to expand.

In July 2018, the Financial Services Commission formed the 'Cloud Regulatory Innovation Task Force' and announced the 'Plan to Expand Cloud Usage in the Financial Sector' to promote the spread of cloud computing in the financial sector. Subsequently, in December, the financial authorities released the 'Guide to Using Cloud Computing Services in the Financial Sector,' which includes specific implementation methods and examples.

In the past, to prevent customer information leaks, financial companies managed critical data, such as personal information, directly on their own computer servers and could not entrust it to servers of external companies.

However, starting in 2019, IT service companies that meet a certain level of information security standards have been able to entrust the storage and management of customers' personal credit information, etc., of financial institutions such as banks.

As the financial cloud market expands due to deregulation, both companies plan to cooperate to aggressively target the market.

The adoption of cloud computing in the financial sector is expanding globally.

According to data released by the Financial Services Commission in 2018, cloud usage is expected to increase from $2.5 billion in 2016 to $3.2 billion in 2017 and $7.2 billion in 2021.

Meanwhile, LG CNS and AWS are leading the domestic cloud market, including being selected in November 2018 as the contractors to fully transition Korean Air's enterprise IT systems to the cloud over three years, worth approximately 200 billion won.

LG CNS stated that the Korean-style financial cloud model is a service optimized for the characteristics of Korea's financial industry, which must comply with complex and stringent financial supervision and information security regulations. With the recent deregulation and expansion of the financial cloud market, LG CNS plans to accelerate the expansion of its financial cloud business not only domestically but also globally by combining the know-how accumulated over 20 years in various financial businesses with the cloud capabilities of both companies.