 Works, so welcome everyone. Thanks for joining this session. Hello everyone. So we will talk about Digital transformation in finance like as you know all the industries are going through transformation because of The new technologies and new ways of doing things and we thought it would be good idea to talk about This type of activities happening in finance industry as well to give you some background and some more information about what's happening there Before we start we can perhaps introduce ourselves Yes, this is our Marshaa Cholo. I'm working at Stockholm at McKinsey and I'm helping European companies European traditional companies to do digital transformation and technological advancement I am Fatih Diermanj. I work for Ericsson Software Technology as a developer and I have no idea about finance So I must say that first because I mainly work in telco space and with the open source committees Who are actually working with the new technologies that enables next generation telecom networks? and before we start with the rest of the presentation I want to Say how this idea came up because I'm telco person. He's working with finance person and like Why we have this talk with people from two different industries You're having couple of beers together and we were talking about like what are you doing? We are friends, right? Yeah, we are friends. We are still friends We said like okay, I am working in telco We are doing this type of stuff in open source and he said oh we are working with banks and so on I said like why are you not talking about what you are doing in open source conferences and open stack open infrastructure? Some it is coming up. Are you fine? We submit a talk together and We said yeah, let's go and submit a talk and talk about the stuff That is happening in open source communities and also happening in finance industry in order to Kind of show that there are many similarities when it comes to challenges principles and practices across different industries Like how they are Across different open source communities. So that's how we came up with the idea to submit this talk and Talk about finance industry and their challenges and the work that's happening there So if we look at the open source communities and the technologies developed by these communities open stack community The pilot projects that take part in open stack foundation like Qatar Zul and other projects. They develop new technologies like CNCF Like the next foundation networking and so on and all these technologies they address certain use cases they Implement certain requirements. They solve some challenges for their end users, which could be either telco industry or Finance industry or other industries and in order for these technologies to really really Provide what end users are after these communities need to work together because These days everyone puts everything on top of each other They put all Kubernetes on top of OpenStack and then they put OpenStack on Kubernetes and then they put SDN counter So everything needs to come together one way or the other to solve certain problems and This can't happen without close collaboration between these communities Like OpenStack committee coming together with CNCF committee links foundation that we're in communities talking with OpenStack community to find solutions to common problems and work together like a big community and All these communities they develop these technologies in different ways Of course, we might all want to have one way to do things But it is not logical and it's not beneficial because all the communities have their own needs and these results in Differences in the tools they use like if you are a developer if you are working with OpenStack You go to open dev get it and you send a patch there your patch gets reviewed Your patch gets tested and finally submitted if you look at CNCF committee the community the project sorted by CNCF Work on github and they have their own CI CD solutions But in the end No matter what communities are using we all need to work together and find ways to Collaborate effectively and again going back to the actual Topic of this talk we need to share with each other across these communities and Even more than that we perhaps should try to use what each of these communities are developing I am working in New York Foundation networking projects I am a contributor to the opnf project and that is an integration project and that is our biggest challenge because as an integration project We take all these different technologies and create different infrastructure solutions by composing these different components and In order for us to be successful with this we need to have some alignment across all these communities I'm not talking about the tooling because You might be using Zool we might be using Jenkins But in that we should be able to construct delivery pipelines across all these different communities so we can pull those Components into our community and compose them and test them and provide feedback to open stack community like an end user in order to achieve that we need to talk with each other we need to go to each other's conferences we need to work with each other on our environments to solve the problems and also reuse things and all these communities and all the New technologies that have been developed by the communities the open technologies like such as cloud Versus Asian infrastructure as a service cloud native and the methodologies that help us achieve developing these technologies Resulted in big advances in all industries Everything is disrupted Overnight a small startup can come up with really cool service solving Many big problems. They don't need to have like thousands of people. They don't Need to be located in certain geographic location. They can just go Bring one service up and they can hit every player in the same industry and this actually is beneficial because With what those companies are doing and how those companies are using new technologies and Adapting to new ways of doing things we can all learn from each other and this helps us to Change how we are doing things in different industries like telecom Since I am telecom person in telecom this 5g it's already happening There is a boot downstairs you can go and see the 5g radios and so on so that is built based on Open infrastructure using airship using open source technologies and if you look at transportation there are work that is work happening there to change how transportation is done and Finally, which is the topic of this talk is the finance industry and I will talk more about what's happening there But I'm sure you signed up some services that lets you open bank account in a minute other than days So that type of stuff changing everything and that is happening with the help of open technologies and open way of working like for opens in order to ensure what is happening and What we are doing is viable and sustainable long-term and help all these industries We need to collaborate across industries as well in the beginning. I said the collaboration is going on across communities and the next Or a similar thing needs to start happening with Different industries between between different industries which might be happening already But it might need to happen more perhaps to ensure whatever is done in open source communities can help solve problems for more and users and In order for us to do that we need to first listen from the people who are working in these different industries To talk about their challenges. What are they doing to address those challenges? What kind of work they are doing to transform those industries digitally? So I'm I will talk about Those parts now giving you more information about what is happening in finance industry. Thank you very much for introduction for a good presentation Yes, I would like to start With some I would like to start to support your your introduction actually and talk a little bit more about with my own words about About different industries and how different industries are merging emerging into a one type of technology stack. I mean before 20 30 years ago banking has a banking industry as cobal Telecom industries are long and even the programming language were different But right now we are in a state that all these technologies are Start to be used by every kind of industry that you could imagine and The catalyser for this are the startups actually the startups are coming to the industry and Shows that they can do much better with the new technologies with the open technologies Compared to the other companies so we saw this disruption in telecom in IPTV media with Netflix in Transportation and of course the finance we will see that so They so in this sense Europe market for the finance Is having two different challenges one is the new startups. They're like hundreds of hundreds of startups emerging from European capitals and three of them are already EU white right now revolutes Monzo and and 26 and they are providing all their operations without any physical Physical store physical a branch including cave I see know your customer and Thanks to the EU white single market policy They can they can operate in all European countries With a single side license. This is one thing that the European customers European companies banks start to see the pressure from there and also the single market policy Is also opens up a new competition actually for the traditional banks in different countries mostly the northern Banks in northern countries are better at digital transformation and they have already done this transformation long time ago like four or five years ago and The southern European banks start to see the competition or Start to understand that they need to reinvent themselves to stay relevant And we see that in the early adopters that young professionals and students are university students are already start to use this FinTech company services because They don't take anything. They don't Charge anything for any transaction for only a bank account only bank account takes like a couple of minutes It's like hassle-free and much linear operation So about the company My cast the customer that we were we were working with to to do the digital transformation It's a traditional company that has been in the in operation for centuries for a couple of centuries and the IT department consists of silos like we could see in the traditional IT companies in 2000s which is like centuries ago for us, right? and the business flow the vision business flow is formulated as one way so Whenever it needs to do an Fix or something like this. It's always like needs to find The business flow needs to find the exception to fix that problem and there are also some ongoing efforts in on agile transformation, but This transformation created some kind of hybrid workflows. For example, the business division is creating the user stories based on the business requirements and then they test they Signed off it together with the testing division and then it goes to the development Division so The developers are still in the at the end of the value stream here Technology part is a little bit better actually So they are ongoing efforts on DevOps tools but they are limited and local and There are some big bank projects like there was this Rewrite of a specific service that they that is very critical of their operation and It has been like two years of project and they didn't do any have any they didn't have any delivery in this two years of Period so it's like a big bank delivery Team FS Microsoft team FS is used for Task management VCS and the computing power is solely based on on-prem and Windows service so this is the this is kind of the summary of Of the European market and the customer itself now. What is really digital transformation, right? I mean when you are thinking about distance transformation, we can start with a very quick example actually for example this so you take an analog signal and Then you hammer it on top a little bit, you know and then you come You you squeeze it a little bit down here and then hammer it a bit more and then it becomes a square and then you come Bring it into this digital transformation, right? I can give you a proof tip about this It's better to squeeze in the The wave between your legs actually so that it doesn't jump on your face when you are hammering, okay? Okay, that was the stupid joke part. Okay Thank you very much for the laugh So digital transformation is not about the technology actually it's more about Mentality changing the mentality to use the new technologies that we have in the last five ten years For the business purpose for the developers purpose to be where we We are doing the digital transformation to help the developers and business people to operate faster so in this sense actually we started a pilot project and we gathered like 15 developers testers five business people product owner Business developer and such and then we created this cross-functional agile team scrum team and we We worked on four different sections actually to to have a digital transformation Project and of course we had a goal. We had a goal to build a feature a new digital feature for the bank So these are organization automation method and legacy. I will start talk about this one by one Sorry another joke Okay here Scrum teams we created scrum teams we and we Establish all the scrum ceremonies like you know supreme planning retrospective daily standouts and stuff to create the first if first layer for the developers first Contract let's say for developers and business people to talk to each other And of course it started with a cargo cart I mean first people thinking I mean people don't know the purpose of these ceremonies But we just follow it but within time with the coaching and in time It actually helps the developers and business people to understand this To understand the purpose of these ceremonies and the scrum master is quite critical here in this In this Transformation because we are having a lot of analog people still in the organization and We need to protect our digital people Digital team so scrum master actually is doing a really good job Good scrum master is actually doing a really good job in this one to help to defend the Digital team or like scrum team To the rest of the organization We were blessed that we had a really good scrum master actually and he was He was doing a tremendous job on this from the client side and the next one is more About automation So automation is also important in our Journey in our digital transformation journey because we need to make sure that we have failed fast Fade fast and move fast type of mentality and automation is critical part here right we need to be able to deliver fast and Deploy it fast to be able to see the result So this is a typical CICD pipeline that you can see in every major Technology companies The developers start with their local machine that they push it to source control from source control It goes to the built-in test servers build server is Building it the test server runs the test and if everything goes nice We put it on the built repository and from built repository it ends up in a demo environment We had to do it till demo environment because we have some limitations in the bank IT environment So we have test environment and the production environment, but we couldn't do the deployment to to these two environments And we use team FS because they were they were already having the technology the tools everything So it's not a tooling problem It's more about the usage right and we make sure that this pipeline is used by the developers every day in Every day with the commits to the main branch Yeah The next one is I Mean if it's not more important than organization, I think it's made way more important than automation The using the modern development practices having the having nice tools and everything doesn't solve your problem You need to use these tools And to be able to use these tools you need to know Certain the technology certain techniques and to start with is the TDD the test in development You start with the failed test cases you write failed test cases and then you write the implementation to Pass your test cases and you read reiterate again Refactor and retrait again again and the other one is the to have a sane Version control. We also established git flow. That's also one of the one of the ceremony that you start with to create a cargo cult and then after that When people start to understand the purpose of branching and having different user stories in different branches You can start to graduate from this git flow, but TDD is very critical Yeah, and we did all the poor requests rigorously and review them so that We make sure that our master branch is ready to ship even though it's not shipped. It's ready to be shipped when it's needed And the last thing about it is the legacy Everyone of us wants to start a new project and wants to write solely our own on code. We don't want to read other developers code, but This is a myth. I mean, this is a unicorn. We cannot redo it So we had a lot of legacy code as well. You know in our repository So what we did we started with the encapsulating the dependencies and and create dependency injections so that our External external libraries or back-end API API doesn't interfere with our test cases. I Will explain it more so we create this Mock libraries that mocks the interfaces as far as we see it The same for external libraries or back-end APIs or any other functionality that still important for us, but it is out of our scope and We put this unit test tests We create a unit test to test this functionality to test the interfaces and we put them in the pipeline To be running every common change so that when we see that there is a Change in the in the code that we are out of scope We can spot it on the fail test case and we can fix it either by talking with that department or fixing our own interfaces This also helped us actually to write concise Function-based unit test cases for our own source code Because we don't need we don't need to need to start we don't We didn't need to write Test cases to test the external functionalities or the combination of external functionalities anymore. I Get a lot of help from two books actually Martin folders refactoring to and Michael feathers working efficiently with legacy code They are really great books. I suggest them to everyone. I really I like to thank them from here For their great knowledge sharing So far that's it. These are the four things that we have Four tools that we used actually for digital transformation and I will talk a bit more about the end result The end result is about three things speed quality and ownership We start to have multiple deployments per day We start to deploy to the dev environment within a minute without any manual term for intervention and the as we as I said the the build or the Release is ready to be deployed All the time we got instant feedback culture So so that the developers can see their failed failed test cases before it becomes like a snowball effect We had the the development environment or the build server is our became our single point of truth To manage different type of dependency problems dependency dependence issues and Ownership developers start to feel more responsible as they are seeing their changes are Effective instantly The sense of quality Was really high actually some of the developers told us one by one said like this is the This is the this is the Highest ownership for the quality that they could see as a project in that country Yeah, and the business developers actually get along with the developers, I mean it's very normal, but That was really nice end result. So all of these results actually are about the About improving the Developers experience and business people experience on on their work. Actually, it's not about revenue and stuff It's more about developers and business people. But of course it affects the the company revenue, of course So what's next? We are still early, of course, I mean we are not early we did the quite big transformations But we are still behind on some of things like test coverage because of the legacy code we need to change the legacy code organically to have To have unit tested to be able to test it Nicely so that we can have zero touch deployments and Single single touch deployments single click deployments also are kind of one of the targets actually that you would like to do before with zero touch Expanding the usage of monitoring tools like Dynatrace and stuff Ensure the test environment test data are set up and support Automated testing we still have problems with the test data And the last thing is actually what is what is this conference is all about is the cloud, right? We we our customer is actually quite concerned about security perspective of the cloud even the private cloud but I saw a lot of good presentations here in this conference and I think I will bring some of them to the clients and more try to motivate them to move to that To try that journey as well So that's it. That's it for me any questions. I would like to answer Yes microphone over there so Thank you for that presentation. So I mean one of the challenges you just mentioned now is of course security and regulatory compliance and all that stuff Yeah, and if you go to speak to any back today, you know, they'll all say that to use AWS Azure and so forth but in this Excuse me in this Example you have here with this bank Have they already worked out how they're actually going to run this because the practical aspects of from a regulatory aspect I mean key is of course to be able to automate this all the way. Yeah, they were to use these tools, right? So, yeah Are you having the dialogue around open stack private clouds? Most I would say 90% of the data cannot live in a public cloud so to speak. So what's what's your what's the strategy on that side? well, I think the strategy is first to start to Transform some of their internal tools right internal ways of working and internal tools And this is what we are we try to achieve in the first phase and the second phase I'm thinking I mean we didn't discuss this with the client yet So with the customer yet, but we can I'm thinking of starting with the container architecture in in on on-prem servers, even though it's not private cloud public cloud But we can start with the container architecture to understand The the the advantages of new technologies and then also containers will help us to migrate to private clouds Public clouds much easier. Yeah, would you say that open stack is a nice opportunity for a bank like this? Yeah, I think so I think so I think we together with the partners with the solution partners. I think open stack is a good solution Like I said, I talked with a couple of guys already here Yesterday and the day before and I think we can use this kind of services. All right. Thanks. Thank you very much Any other question? Yes, thank you very much everyone. Thanks a lot. We appreciate that you're coming