What Makes Microservices Architecture for Banking Stand out?

Digital banking transformation is a hot topic in the financial services industry right now. New technologies and innovations are helping banks reimagine their services, drive new revenue streams and stay ahead of the competition. In this blog article, we will examine the digital banking transformation journey through the lens of a microservices architecture for banking built on cloud services, which is a key component of any organization's digital transformation strategy.

What is a Microservices Architecture?

A microservices architecture is a type of software architecture that separates a business or an enterprise system into independent, modular components called microservices. This enables businesses to build applications quickly with a modular approach that is agile and easy to scale. A microservices architecture is also known as a distributed systems architecture. Distributed software systems are made up of independent, self-contained components that run on one or more servers. These components are responsible for specific business tasks, such as collecting data, processing data or storing data. A microservices architecture is also referred to as a service-oriented architecture, or SOA. An SOA has many small, discrete, independent services that communicate with each other through internet protocols, or APIs. These services can be built, tested and deployed in a shorter amount of time than other types of architecture.

Microservices Architecture for Banking

A microservices architecture promotes flexibility and scalability by enabling developers to create and deploy smaller and independent services that can be easily maintained and updated. This approach also allows different teams to work autonomously on different services without having to coordinate with each other. A microservices architecture is a good fit for the banking industry because it promotes agility and quicker product iteration. A microservices architecture can help banks better serve customers by enabling them to implement new features in their digital products faster and more efficiently.

Example of Microservices in Banking

Let’s say your bank has a mobile app for international travelers that informs them about exchange rates and enables them to convert currencies. To develop this app, you would have to create a single code base for the app and then deploy it to multiple platforms, such as Android, iOS and Windows. However, this approach would make the app bulky and difficult to maintain. With a microservices approach, you would break down this single app into a series of microservices, such as a wallet service, an exchange rate service and a conversion rate service. 

Why is a Microservices Architecture Best for Digital Banking?

A microservices architecture can help banks achieve many of their digital transformation goals by promoting agility, scalability, reliability and decoupling. So, what makes it different?

Frequently introduce new services

This architecture is intended to allow for more frequent modifications and upgrades, resulting in speedier recovery, lower failure probability, and shorter lead time. In conventional applications, changes made in one location might have an impact on a completely separate application's component. As a result, it is a never-ending development-testing cycle that is unacceptable in today's fast-paced digital banking environment.

Simpler implementation of new services

It is considerably easier to run with a microservice architecture since businesses do not have to start from scratch every time they want to introduce a new component or service.

Changes are implemented more quickly.

Companies may assign jobs among several teams using microservice architecture applications, and those teams can work on application components concurrently without imposing extra duties on one other.

Related Articles

Explore More Special Offers

  1. Short Message Service(SMS) & Mail Service

    50,000 email package starts as low as USD 1.99, 120 short messages start at only USD 1.00

phone Contact Us