What do the movies have in common with banks? Aside from the billions of rands and dollars that flow through both industries, they seem worlds apart. Yet, in the world of cloud computing, they are suddenly close neighbours.
It’s not just that both now tend to host their services in the cloud, accessible from any connected device anywhere in the world. Now, they can take advantage of the lessons, systems and strategies that each has adopted in the cloud.
One of the best-known examples of leveraging the cloud for global impact is Netflix, which hosts its content in the data centres of Amazon Web Services (AWS), the world’s largest cloud computing service. Along with videos and movies, it also uses applies regional licensing frameworks via this cloud platform, meaning it can instantly launch new services and videos worldwide that comply with local regulations in every country.
At last week’s AWS Summit in Cape Town, it became clear just how powerful the cloud can be for South African organisations. One of South Africa’s oldest insurance companies, one of the country’s largest universities and the country’s newest bank all took to the stage to share case studies of how the cloud had transformed their operations.
That is probably all that Old Mutual, the University of Pretoria and TymeBank have in common, but they slotted in neatly to a bigger story: the cloud is available to any institution or business, large or small, old or new. This is the underlying secret to the astonishing growth of TymeBank, South Africa’s first fully digital bank, and the first entity to receive a banking license in this country in 19 years.
Launched earlier this year, it currently brings 100,000 new customers on board every month. To achieve this, it uses no less than 54 distinct services available on the AWS platform, says Dieter Botha, chief information officer of the bank.
“We’ve got so many services in the ecosystem. From a security point of view, every single one of our customers’ conversations with banks comes into the AWS world via a security layer, a content delivery network, web application firewall and AWS’s Advanced Shield, so we are pretty resilient from cyber attacks. The primary purpose is to make sure our face to the world is protected from attack.”
The most fascinating aspect of their ability to leverage the AWS cloud, however, was the fact that they were able to piggyback on processes and systems that streaming video giant Netflix had created for its own services in the cloud.
“They’ve got what we call the Netflix stack, a set of tools they put together that makes it easier to manage microservices, small elements of computer processes that run in what are called containers.”
Netflix built its own application containers, on top of an open-source platform, meaning that anyone could use and adapt the systems it had developed. However, that was only a starting point while TymeBank was pulling itself up by its own bootstraps.
“This is where we say, if you take a step back, this stuff is very cool, but it translates into an element of risk. From a risk point of view, rather than using that scaffolding, we said let’s take our microservices container, and get an animal like AWS to run it for us. So we’re effectively replacing the Netflix stack with AWS and its native services.
“Now our techies can just focus on the code inside our operations rather than build the heavy scaffolding we had to worry about. The documentation is so good on AWS, because they have real technical gurus who understand the systems, that it de-risks our services.”
Netflix wasn’t the only everyday consumer service that played its part on building TymeBank. It turns out that many of the global giants have made their systems and learnings available to anyone on the world. The bank turned to a product from none other than Facebook to help build its Web presence.
As TymeBank refines its services and migrates deeper and deeper into the Amazon cloud, it has also been able to cut costs dramatically.
“We found as we’ve grown and become more comfortable in that cloud and more skilled in the use of the cloud, we began consuming more native services, meaning they are designed to run in the cloud. That’s a really big deal for us. That’s when you see the benefits of the cloud ecosystem. One native service can trigger another, because they talk to each other well.
“This includes a set of services that help you manage your life and bills in the cloud. People forget about costs. Now we can tag a lot of our services in the AWS cloud to understand exactly what is driving cost points, and we are able to manage costs right down to the level of the techies.
“Traditionally, if you sign a contract with a big supplier, it gets filed away, and the techies don’t even know what is driving costs. By tagging services in the cloud, you’re giving cost knowledge to your techies, and it’s in their power to push it up and down. You give them the power to understand costs and manage them. That’s never been possible before.”
This partly explains why TymeBank is able to bring the monthly cost of having a bank account to exactly zero. It is only when one starts using its services that banking fees kick in.
However, the fact that a 174-year-old insurance company like Old Mutual and a 156-year-old like Standard Bank are also rapidly migrating to the AWS platform is a clear message that the cloud is not just for newcomers.
Both institutions began offering their services in the middle of the 18th century, when the concept of technology barely existed. Yet, the constant evolution and falling price of cutting-edge tech like cloud computing has meant they can not only survive, but even thrive, in the presence of young upstarts like TymeBank.
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee
Tech promotes connections across groups in emerging markets
Digital technology users say they more regularly interact with people from diverse backgrounds
Smartphone users – especially those who use social media – say they are more regularly exposed to people who have different backgrounds. They are also more connected with friends they don’t see in person, a Pew Research Center survey of adults in 11 emerging economies finds.
South Africa, included in the study, has among the most consistent levels of connection across age groups and education levels and in terms of cross-cultural connections. This suggests both that smartphones have had a greater democratisation impact in South Africa, but also that the country is more geared to diversity than most others. Of 11 countries surveyed, it has the second-lowest spread between those using smartphones and those not using them in terms of exposure to other religious groups.
Across every country surveyed, those who use smartphones are more likely than those who use less sophisticated phones or no phones at all to regularly interact with people from different religious groups. In most countries, people with smartphones also tend to be more likely to interact regularly with people from different political parties, income levels and racial or ethnic backgrounds.
The Center’s new report is the third in a series exploring digital connectivity among populations in emerging economies based on nationally representative surveys of adults in Colombia, India, Jordan, Kenya, Lebanon, Mexico, the Philippines, Tunisia, South Africa, Venezuela and Vietnam. Earlier reports examined attitudes toward misinformation and mobile technology’s social impact.
The survey finds that smartphone and social media use are intertwined: A median of 91% of smartphone users in these countries also use social media or messaging apps, while a median of 81% of social media users say they own or share a smartphone. And, as with smartphone users, social media and messaging app users stand apart from non-users in how often they interact with people who are different from them. For example, 52% of Mexican social media users say they regularly interact with people of a different income level, compared with 28% of non-users.
These results do not show with certainty that smartphones or social media are the cause of people feeling like they have more diverse networks. For example, those who have resources to buy and maintain a smartphone are likely to differ in many key ways from those who don’t, and it could be that some combination of those differences drives this phenomenon. Still, statistical modelling indicates that smartphone and social media use are independent predictors of greater social network diversity when other factors such as age, education and sex are held constant.
Other key findings in the report include:
- Mobile phones and social media are broadening people’s social networks. More than half in most countries say they see in person only about half or fewer of the people they call or text. Mobile phones are also allowing many to stay in touch with people who live far away: A median of 93% of mobile phone users across the 11 countries surveyed say their phones have mostly helped them keep in touch with those who are far-flung. When it comes to social media, large shares report relationships with “friends” online who are distinct from those they see in person. A median of 46% of Facebook users across the 11 countries report seeing few or none of their Facebook friends in person regularly, compared with a median of 31% of Facebook users who often see most or all of their Facebook friends in person.
- Social activities and information seeking on subjects like health and education top the list of mobile activities. The survey asked mobile phone users about 10 different activities they might do on their mobile phones – activities that are social, information-seeking or commercial in nature. Among the most commonly reported activities are casual, social activities. For example, a median of 82% of mobile phone users in the 11 countries surveyed say they used their phone over the past year to send text messages and a median of 69% of users say they took pictures or videos. Many mobile phone users are also using their phones to find new information. For example, a median of 61% of mobile phone users say they used their phones over the past year to look up information about health and medicine for themselves or their families. This is more than the proportion that reports using their phones to get news and information about politics (median of 47%) or to look up information about government services (37%). Additionally, around half or more of mobile phone users in nearly all countries report having used their phones over the past 12 months to learn something important for work or school.
- Digital divides emerge in the new mobile-social environment. People with smartphones and social media – as well as younger people, those with higher levels of education, and men – are in some ways reaping more benefits than others, potentially contributing to digital divides.
- People with smartphones are much more likely to engage in activities on their phones than people with less sophisticated devices – even if the activity itself is quite simple. For example, people with smartphones are more likely than those with feature or basic phones to send text messages in each of the 11 countries surveyed, even though the activity is technically feasible from all mobile phones. Those who have smartphones are also much more likely to look up information for their households, including about health and government services.
- There are also major differences in mobile usage by age and education level in how their devices are – or are not – broadening their horizons. Younger people are more likely to use their phones for nearly all activities asked about, whether those activities are social, information-seeking or commercial. Phone users with higher levels of education are also more likely to do most activities on their phones and to interact with those who are different from them regularly than those with lower levels of education.
- Gender, too, plays a role in what people do with their devices and how they are exposed to different people and information. Men are more likely than women to say they encounter people who are different from them, whether in terms of race, politics, religion or income. And men tend to be more likely to look up information about government services and to obtain political news and information.
These findings are drawn from a Pew Research Center survey conducted among 28,122 adults in 11 countries from Sept. 7 to Dec. 7, 2018. In addition to the survey, the Center conducted focus groups with participants in Kenya, Mexico, the Philippines and Tunisia in March 2018, and their comments are included throughout the report.
Nokia to be first with Android 10
Nokia is likely to be the first smartphone brand to roll out Android 10, after its manufacturer, HMD Global, announced that the Android 10 software upgrade would start in the fourth quarter of 2019.
Previously named Android Q, it was given the number after Google announced it was ditching sweet and dessert names due to confusion in different languages. Android 10 is due for release at the end of the year.
Juho Sarvikas, chief product officer of HMD Global said: “With a proven track record in delivering software updates fast, Nokia smartphones were the first whole portfolio to benefit from a 2-letter upgrade from Android Nougat to Android Oreo and then Android Pie. We were the fastest manufacturer to upgrade from Android Oreo to Android Pie across the range.
“With today’s roll out plan we look set to do it even faster for Android Pie to Android 10 upgrades. We are the only manufacturer 100% committed to having the latest Android across the entire portfolio.”
HMD Global has given a guarantee that Nokia smartphone owners benefit from two years of OS upgrades and 3 years of security updates.