Recently, the Milemarker team was able to spend multiple days with the team at Amazon, who specializes in Redshift for Financial Services. This team is working with today’s top advisory, asset management, and insurance companies – helping them unlock the power of Redshift.
What does Amazon Redshift do?
Redshift is a fast, fully managed data warehouse that makes it simple and cost-effective to analyze all your data using standard SQL and your existing Business Intelligence (BI) tools. It allows you to run complex queries on petabytes of data in seconds, giving you the insights you need to make better business decisions.
The cloud computing era is admittedly a newer concept to many in the wealth management industry. At Milemarker, we believe this era will totally reshape the entire financial services industry.
Reshaping financial services will come through real-time and near real-time data sharing that is able to retire flat files and latent API’s – allowing companies to function like highly scalable software companies.
Why is Amazon Redshift growing in Financial Services?
The facts are that cloud computing is growing at an accelerated pace. More and more businesses are moving to the cloud every day. In fact, Gartner predicts that by 2029, 95% of organizations will be using the cloud in some capacity.
The benefits of cloud computing are vast, but for financial services companies, there are a few key advantages that make it particularly well-suited:
1. More Efficient Data Management
Amazon Redshift is a cloud-based data warehouse that helps financial services companies more efficiently manage their data. The service is designed to handle large amounts of data and to provide fast and reliable access to that data. Additionally, Amazon Redshift provides a number of features that make it easy to load, query, and update data.
What does Data Efficiency actually mean?
Data efficiency is the ability to quickly and easily access the data you need when you need it. It’s about having a system in place that can handle large amounts of data and provides fast and reliable access to that data. Additionally, features like Amazon Redshift Spectrum make it easy to query data stored in external data sources without having to first load it into Redshift.
2. Improved Business Insights
By more efficiently managing their data, financial services companies can improve their business insights. With Amazon Redshift, businesses can easily run queries on large datasets and generate reports that can help them to understand better their customers, their business operations, and the markets in which they operate.
How does Amazon Redshift actually unlock Business Insight?
Amazon Redshift unlocks business insight and intelligence by providing the ability to query large data sets quickly. This allows businesses to understand not just their customers but also their business operations and the markets they operate in, at a much deeper level. With Amazon Redshift, all of this can be done at a fraction of the cost of traditional data warehouses.
You can connect your Redshift to the Milemarker Analytics Suite to join, connect and drill down on the information that is critical to your operations, sales, client experience and overall strategic insight.
3. Reduced Costs
Another benefit of using Amazon Redshift is that it can help businesses to reduce their costs. The service is highly scalable, which means that businesses only pay for the resources they use. Additionally, Amazon Redshift offers a number of features that can help businesses save money on storage and computing resources.
4. Increased Customer Satisfaction
By using Amazon Redshift, financial services companies can also increase customer satisfaction. The service provides fast and reliable access to data, which means that customers can quickly get the information they need. Additionally, the service’s scalability means that businesses can easily meet customer demands without incurring additional costs.
5. Improved Regulatory Compliance
Another benefit of using Amazon Redshift is that it can help businesses to improve their regulatory compliance. The service’s security features help to protect sensitive data, while its auditing capabilities make it easier for businesses to track who accesses what data and when. This information can be helpful in the event of a data breach or other security incident.
How does AWS Redshift help you with FINRA & SEC Compliance?
FINRA & SEC compliance can be a challenge for any organization, but especially for financial services companies. Amazon Redshift provides a number of features that can help businesses to meet these requirements, including data encryption, data auditing, and activity logging. Additionally, the service’s scalability means that businesses can easily add more storage and computing resources as their compliance needs grow.
6. Enhanced Security
Financial services companies are handling increasingly sensitive data, so it is important for them to have a secure data warehouse solution. Amazon Redshift provides a number of features that help to protect data, including encryption at rest and in transit, role-based access control, and activity logging. Additionally, the service integrates with AWS Identity and Access Management (IAM), which makes it easy to manage user permissions and control access to resources.
As businesses grow, their data warehouse needs will change. Amazon Redshift is a scalable solution that can grow your business. The service can easily be scaled up or down to meet changing demands, and you only pay for the resources you use.
What does scaling Redshift really look like?
You have multiple choices to increase storage and/or compute capacity.
You can add more nodes to your cluster, which will linearly increase query performance and concurrency. You can also modify the node type, which will change the price/performance ratio, allowing you to optimize for either cost or speed. For example, if you want to be able to run more complex queries or support more concurrent users, you would choose a denser node type with more CPUs and RAM. If you want to minimize cost while still maintaining good performance, you would choose a less dense node type.
You can also increase the size of your existing nodes. This will give you more storage but will not change the number of CPUs or amount of RAM. This can be a good option if you are I/O bound, meaning that your queries are limited by the disk speed and not the CPU or memory.
If you’re a financial services company looking for a data warehouse solution, Amazon Redshift is a great option. The service offers a number of advantages that can help businesses to improve their data management, business insights, and compliance posture. Additionally, Amazon Redshift is a scalable solution that can grow your business.
To learn more about how Amazon Redshift can help your financial services company, reach out to Milemarker today.