 Welcome back to theCUBE's continuing coverage of Snowflake Summit 22, live from Caesars Forum in Las Vegas. I'm Lisa Martin with Dave Vellante. We've got a couple of guests joining us now. We're going to be talking about financial services. Rinesh Patel joins us, the global head of financial services for Snowflake. And Jack Berkowitz, Chief Data Officer at ADP. Guys, welcome to the program. Thanks. Thanks for having us. Thanks for having us. Talk to us about what's going on in the financial services industry as a whole. Obviously, we've seen so much change in the last couple of years. What does the data experience look like for internal folks and of course for those end user consumers and clients? So, you know, one of the big things happening inside the financial services industry is overcoming, you know, the COVID weight, right? A lot of banks, a lot of institutions like ours had a lot of stuff on prem. And then the move to the cloud allows us to have that flexibility to deal with it. And out of that is also all these new capabilities. So the machine learning revolution has really hit the services industry, right? And so it's affecting how our IT teams or our data teams are building applications. Also really affecting, you know, what the end consumers get out of them. And so there's all sorts of consumerization of the experience over the past couple of years much faster than we ever expected it to happen. Right, we have these expectations as consumers that bleed into our business lives that we can, I can do transactions. It's going to be, you know, on the swipe in terms of checking authenticity, fraud detection, et cetera. And of course we don't want things to go back in terms of how brands are serving us. Talk about some of the things that you guys have put in place with Snowflake in the last couple of years, particularly at ADP. Yeah, so one of the big things that we've done is one of the things that we provide is compensation data, right? So we issue a thing called the National Employment Report that informs the world as to what's happening in the U.S. economy in terms of workers. And then we have compensation data on top of that. So the thing that we've been able to do with Snowflake is to lower the time that it takes us to process that and get that information out into the fingertips of people. And so people can use it to, you know, see what's changed in terms of, you know, what the worker changes, right? How much people are making, you know? And they can get it very, very quickly. We're able to do that with Snowflake now. It used to take us weeks. Now it's in a matter of moments. We can get that updated information out to people. Interesting. It helps with the talent war and, you know, helps in the talent war, helps people adjust, you know, even where they're going to put, you know, supply chain in a reaction to where people are migrating. We can have all of that inside of the Snowflake system and available almost instantaneously. And you guys announced the financial data cloud last year, right? What was that like? Because I know, we had Frank on earlier, clearly was driving the verticalization of Snowflake, if you will, which is kind of rare for a relatively new software company. But what's that been like? Give us the update on where you're at and biggest vertical, right? Absolutely. It's been an exciting 12 months. You know, we're a platform, but the journey and the vision is more. We're trying to bring together a fragmented ecosystem across financial services. And the aim is really to bring together key customers, key data providers, key solution providers, all across the different clouds that exist to allow them to collaborate, you know, with data in a seamless way. To solve, to solve industry problems, to solve industry problems like ESG, to solve industry problems like quantitative research. And we're seeing a massive ground swell of customers coming to Snowflake, looking at the financial services, data cloud now to actually solve business problems, business critical problems. That's really driving a lot of change in terms of how they operate, in terms of how they win customers, mitigate risk, and so forth. Jack, I think I feel like the only industry that's sometimes more complicated than security is data. Maybe not. Security's still more, maybe more fragmented. Really the intersection of the two is a nightmare, right? And so as you look out on this ecosystem, how do you, as a chief data officer, how do you and your organization, what process do you use to decide, okay, which of the chef, which of these ingredients am I going to put together for my business? It's a great question, right? There's been an explosion of companies, right? You know, we kind of look at it in two ways. One is, we want to make sure that the software and the data can interoperate, because we're not really, we don't want to be in the business of writing bridge code. So first thing is, is having the ecosystem so that the things are tested and can work together. The other is, and it's important to us, is understanding the risk profile of that company. You know, we process about 20% of the US's payroll, another 25% of the taxes, and so there's a risk to us that we haven't been imperative to protect. So we're looking at those companies, are they financed? You know, what's their management team? What's the sales experience like? You know, that's important to us. And so, you know, technology and the experience of the company coming together are super important to us. What's your purview as a chief data officer? I mean, a lot of CDOs that I know, you know, came out of the back office and it was a compliance or a data quality. You come out of industry from a technology company, so it's sort of the modern, you're like the modern CDO. What's your role? I appreciate that. You know what I'm saying though, right? Yeah. If for a while it was like, oh yeah, we have compliance with that. And then all of a sudden, boom, big deal. I really have two jobs, right? So I have that job with data governance, but a lot of data security. But I also have a product development unit. Massive business in monetization of data or people analytics or these compensation benchmarks or helping people get mortgages, right? So providing that information so that people can get their mortgage or their bank loans or all this other type of transactional data. So it's both sides of that equation is my remit inside. You're responsible for building data products. That's right. Directly. It's a massive team that builds data products. Okay, that's somewhat unique in your legs. But I think it's where CDOs need to be, right? So we build data products, we build and we assist as a hub to allow other business units to build analytics that help them either optimize their cost or increase their sales. And then we help with all that governance and communication by, we don't want to divide it up. There's a continuum to it. And you're a peer of the CIO and the CISO? Yeah, exactly, they're my peers. I actually talk to them almost every day. So I've got the CIOs appear, I've got the security is appear and we get things done together. Talk about the alignment with business. We've been talking a lot about alignment with the data folks, the business folks, the technical folks to identify the right solutions to be able to govern data, to monetize it, to create data products. You mentioned a couple of your cohorts, but what on the business side? Who are some of those key folks? So we have, we're like any other big, big organization. We have lots of different business units. So we work directly with either the operational team or the heads of those business units to divine analytic missions that they'll actually execute, right? And at the same time, we actually have a business unit that's all around data monetization. And so I work with them every single day. And so these business units will come together. I think the big thing for us is to define value and measure that value as we go. As long as we're measuring that value as we go, then we can continue to see improvements. And like I said, sometimes it's bottom line, sometimes it's top line, but if we're involved, data is actually a substrate of the company, right? It's not a side thing to the company. I mean, the robot is, yeah, but if they say data first, but you really are data first. Yeah, yeah, our CEO says data is your product. Data's our middle name, it literally is. Well, so what do you do in the Snowflake Financial Services data cloud? Are you actually going to be, are you monetizing? Yeah, yeah, so we have clients, so part of our data monetization is actually providing aggregate and anonymized information that helps other clients make business decisions. So they'll take it into their analytics. So, supply chain optimization, where should we actually put the warehouses based on the population shifts? And so we're actually using the file distribution capabilities or the information distribution, no longer files, where we use Snowflake to actually be that data cloud for those clients. So it just, the data just pops up for our other clients. I think the industry's existed a lot with the physical movement of data. When you physically move data, you also physically move the data management challenges. Where do you store it? How do you map it? How do you concord it? And ultimately, data sharing is taking away that friction that exists. So it's easy to be able to make informed decisions with the data at hand across two counterparties. Yeah, and it's a benefit to us because it lowers our friction. We can have a conversation and somebody can be, obviously the contracts have to be signed, but once they get done, somebody's up and running on it within minutes. And we're used to be, as you were saying, the movement of data and loss of control, we never actually lose control of it. We know where it is. Or, yeah, contract signed, now you got to go through this long process of making sure everything's cool. Or, a lot of times it could slow down the sale and they say, hey, let's see how that's going to, let's do a little advanced work. Now you're working without a contract. Here, you can say, hey, we're in the Snowflake data cloud. It's governed. You're a part of the ecosystem. Yeah, and the ecosystem, we announced, oh gee, I think it's probably almost a year and a half ago, a relationship with ICE, Intercontinental Exchange, where they're actually taking our information and their information and creating a new data product that they in turn sell. So you get this sort of combination. Absolutely. The ability to form partnerships and monetize data with your partners vastly increases as a consequence. Talk to us about the adoption of the financial services data cloud in the last maybe nine months or so since it was announced. And also, in terms of its value proposition, how does the ADP use case articulate that? So, very much so. So in terms of momentum, we now have a global organization, as you mentioned, we are verticalized. So we have increasingly more expertise and expertise and expertise now within financial services. That allows us to really engage and accelerate our momentum with the top banks, with the biggest asset managers by AUM, insurance companies, sovereign wealth funds on Snowflake. And obviously those data providers and solution providers that we engage with. So the momentum's really there. We're really moving very, very fast in a great market because we've got great opportunity with the capabilities that we have. I mean, ADP is just one of many use cases that we're working with the collaborations that we're taking to market. So, yeah, the opportunity to monetize data and help our partners monetize the data has vastly increased within this space. When you think about, oh, good, please. I was just going to say, from our perspective, as we were getting into this, Snowflake was with us on the journey. And that's been a big deal. So when you think about the data privacy, governance, et cetera, in public policy, you got, it seems like you have, obviously you got things going on in Europe and you got California, you have other states. There's increasing complexity. You guys probably love that. More data warehouses, but where are we at with that whole? It's a great question, right? Privacy is, we hold some of the most critical information about people because that's our job to help people get paid. And we respect that as sort of our prime agenda. Part of it deals with the technology. How do you monitor? How do you see? Make sure that you comply with all these regulations. But a lot of it has to do with the basic ethics of why you're doing and what you're doing. So we have a data and AI ethics board that meets and reviews our use cases, make sure not only are we doing things properly to the regulation, but are these the types of products or these are the types of opportunities that we as a company want to stand behind on behalf of the consumers, right? Our company's been around 75 years. We talk about ourselves as a national asset. We have a trust relationship. We want to ensure that that trust relationship is never violated. Are you in a position where you can influence public policy and create more standards or framework? We actually are, right? We issue something every month called the National Employment Report. It actually tells you what's happening in the U.S. economy. We also issue it in some overseas countries like France. Because of that, we work a lot with various groups. And we can help shape either data policy, we're involved in understanding, although we don't necessarily want to be out in the front, but we want to learn about what's happening with Federal Trade Commission, EEOC. Because at the end of the day, we serve people. I always joke, ADP is my grandfather's, it's my grandfather's ADP. Well, it was actually my grandfather's ADP, right? He was a small businessman, and he used ADP all those years ago. So we want to be part of that conversation because we want to continue to earn that trust every day. Well, plus your observation space is pretty wide, and you've got context and perspective on that that you can bring. We move somewhere between two and a half trillion dollars a year through our systems. And so we understand what's happening in the economy. Oh, sorry. Can your national employment report combine with this little snowflake magic tell us what the hell's going to happen with this economy? It's really interesting you say that. Yeah, we actually can. Okay. I think when you think about the amount of data that we are working with, the types of partners that we're working with, the opportunities are infinite. They really, really are. So it's either a magic eight ball or it's a crystal ball, but you have it. We've just uncovered that here on theCUBE. We think we have great partners. We have great data. We have a set of industry problems out there that we're working in collaboration with the community to be able to solve. What are some of the upcoming use cases, Rinesh, that excite you, that are coming up in financial services that snowflake is going to knock out of the park? So look, I think there's a set of here and now problems that the industry faces. ESG is a good one. If you think about ESG, it means many different things from business ethics to diversity to your carbon footprint and every asset manager has to make sure they have now some form of green strategy that reflects the values of the investors. And every bank is looking to put in place sustainable lending to help their corporate customers transition. That's a big data problem. And so we're very much at the center of helping those organizations support those informed investors and help those corporate transition to a more sustainable landscape. So let me give you an example. On Snowflake, we launched capabilities about diversity benchmarks. The first time in the industry, companies can understand for their industry, their size, their location, what their diversity profile looks like and their org chart profile looks like to differentiate or at least to understand are they doing the right things inside the business. The ability for banks to understand that and everything else, it's just, it's a big deal and that was built on Snowflake. And it's massive, especially in the context of the question around regulation because we're seeing more and more disclosure agreements come out where all regulators are making sure that there's no greenwashing taking place. So when you have really strong sources of data that are standardized that allow that investment process to ingest that data, it does allow for a better outcome for investors. Real data. I mean, that diversity example, they don't have to rely on a survey. It's not a survey. It's anecdotes. It's coming right out of the transactional systems and it's updated, whenever those paychecks are run, whether it's weekly, whether it's bi-weekly or monthly, all that information gets updated and it's available. So it sounds like ADP is a facilitator of a lot of company's ESG initiatives, at least in part. Well, we partner with companies all the time, right? We have over 900,000 clients and all of them are, you know, we've never spoken to a client who's not concerned about their people, right? And that's just good business, right? And so, yeah, we're involved in that and we'll see where it goes over time now. I think there's tremendous opportunity. If you think about the data that the ADP have in terms of diversity, in terms of the gender pay gap, huge, huge opportunity to incorporate that, as I said, into the ESG principles and criteria. Good, because that definitely needs to be addressed. Guys, thank you so much for joining Dave and me on the program, talking about Snowflake ADP, what you're doing together and the massive potential that you're helping unlock with the value of data. We appreciate your insights and your time. Thank you for having us, guys. Yeah, thank you so much. For our guests and Dave Vellante, I'm Lisa Martin. You're watching theCUBE live in Las Vegas at Snowflake Summit 22. Dave and I will be right back with our next guest.