Broadening arena of Microservices in Financial Services Sector

Microservices- An It model that disintegrates down ultimately into slow-moving, monolithic IT systems into varied decoupled and self-sustained multiple small independent services-have now evolved as a pivotal asset for all of the financial services arena as they have embarked upon their digital transformation voyage.

It’s an easier thing to understand why it is so pivotal in transforming the financial service arena landscape. With the existing and upcoming financial benefits that also includes

  • Rapid Rise in Scalability
  • Improved Security measures and proactiveness of the subsystems.
  • Totally transparency and reliable IT infrastructure

These all measures together support the financial organizations to be dynamic, increase the agility, being always proactive and mitigate any untoward risks, and as well to steadily innovate and thereby be the financial leader globally.

Pondering upon what is Microservices? They were initially designed in such a way that they emerge as the problem solver to mitigate the inherent problem of monolithic design wherein they break up applications into smaller, independently coupled and nonaligned deployable services that thereby suites such smaller services in performing varied and specific business capabilities.

The model is set to become even more popular and will be a must to be adopted in the Financial Service arena in the upcoming years, with the microservices market only to be estimated to reach $32 billion by 2023. Even during the current year 2020, many years after the term microservices entered the industry’s core arena, Lexicon and the pivotal interest strived to grow according to Google Trends; in February of this year, the search term reached an all-time high with users in the UK.

An illustration of how microservices have already been optimally utilized can be found in the form of streaming-giant Netflix. Until 2008 and a few years later, Netflix relied on a monolithic model when it suffered an IT outage due to major database corruption. Following this, Netflix designers and Management took the final decision to break apart the application, moving from monolithic to multiple varied independent services in order to increase scalability, reliability, and availability.

This further broadened and continued its growth which is understandable, with the given success of businesses such as Amazon, PayPal, Capital One, and Monzo. Organizations like these have demonstrated the ability to rapidly scale and deliver value because of their microservices architecture – essential qualities in the financial industry.

Microservices Core Challenges and Path Ahead: –

Nevertheless, in the current day scenario for organizations considering this particular move, it’s essential to be aware that from the evolution of a monolithic infrastructure to a microservices driven architecture it isn’t always simple as not every organization gets it right and it is not appropriate for every application that is utilized globally.

A transition to microservices can be particularly painful for the banking arena: as these companies and certain other financial institutions typically rely on batch-based processing, and architecture there utilized is hugely a monolithic – ancient by technology standards. The challenge with these monolithic ancient platforms is that consumer-facing applications need to have a swifter development and release cycles to keep up with consumer demands. However, there are complex data dependencies, especially when mainframes are thrown into the mix.

Even if a mobile banking application uses an agile methodology to go to market, core banking architectures can cause delays in the pipeline.

The Ensono’s own data pool witnessed that, 29 percent of the businesses struggle with delays in their deployment cycles. 16 percent are hugely failing to meet delivery deadlines which amongst the banking sector, these figures are quite expected to be much higher.

Benefits expected within its reach: –

If the banking arena, as well as all other financial institutions, do get the right mix of microservices, then there are plenty of advantages to looking forward to. Layered on top of the core banking arena, microservices can reap following lead benefits like : –

  • Enable the core software and application developers in changing and also in the re-deployment of the software without fear of compromising the core application.
  • Decoupled release cycles and the strengthened agility, that refers to as an application backed update can be swiftly developed and deployed in hours.
  • More effectively it supports scaling the overall growth amongst the users, and quickens the transaction volumes since the infrastructure can be easily replicated.
  • Curb down the infrastructure’s failure footprint, since code is much less interdependent and are basically acts as the separate chord.
  • Make apps easier to be obstinate and replace it going forward if it gets obsolete.

Improve the whole security process, and, since the services can be isolated and a security breach does not necessarily threaten an entire application.

These are all considerable advantages for sure, but banks need to ensure that their IT strategy is robust enough to achieve this transition. To run a microservices infrastructure, the whole organization must align its operations, and other IT units and leaders will need to be pulled into the transition.

Team sizes may need to shrink to accommodate for more agile working practices; DevOps practices and methodologies will likely need to be adopted so that the larger number of services can benefit from fully automated deployments; organizational communication will need to be optimized; and businesses will need to have the tools and processes in place to trace, alert, and recover any faulty services.

Even before all of this, companies need to ask several critical questions: do they really need it, do they have the know-how in house, and is their agreement from all departments. If there are positive answers to all three, then the path ahead may well be one that leads to a microservices model.


Please enter your comment!
Please enter your name here