Successful digital transformation hinges on the ability to unlock the enormous business potential of customer experiences for a bank. It’s the focus on engineering superior customer experiences for banking leaders is the right step towards successful transformation.
According to Infoholic Research, the Microservice Architecture market is expected to reach $32.01 billion by 2023, growing at a CAGR of around 16.17% during the forecast period. It is not only a noticeable trend soon but also a way to grow in the years to come for the banking industry.
Let us look at how microservices will help the banks in this context.
- Modify without fear
Banks generally have large monolithic software architecture and are wary to quickly change the same. The bank’s architecture is mostly archaic, and the technology teams take ages to make any modifications. Microservices Enable developers to change and re-deploy software without fear of compromising the core application.
- Zip through the release deadlines
According to this Deloitte Insights report, 40% of North American banks and 29% of European banks’ IT budget is allocated to the new technologies. It is no surprise that new technologies will be based on a microservices architecture. With the new architecture in place, the release cycles could be decoupled and agility could be increased significantly. This means faster development to the deployment cycle.
- On-demand growth
The current pandemic situation has caught most of the technology owners in the banks unaware. The World Retail Banking Report 2020 (WRBR) suggests that almost 57% of the respondents prefer internet banking, which is significantly higher than the pre-COVID area.Microservices enable a banking operation to be scalable on-demand. For instance, if there is a high volume on internet banking, only that module could be scaled up to meet the demands, as the necessary infrastructure can easily be replicated.
- Higher tolerance to faults
The MCS is a fairly independent setup. It not only reduces the infrastructure’s failure footprint but also has a faster recovery rate since code is much less interdependent.Circuit breakers are good way to prevent the cascading failure effect between multiple microservices and also provide a default behaviour in case of failures.
- Make applications redundant
In 2020 and beyond, applications are going to be very code light and easy to develop and deploy. MCS architecture not only makes it easy to develop new applications in a faster and easier way, but it also makes it easy to refactor or replace them going forward.While designing need to make sure the components are loosely coupled and can be replaced with new tech stack with minimal changes.
This latest report indicates 80% of the bank’s executives cited security as one of the obstacles of modernisation. Microservices do not only improve security since services can be isolated and a security breach does not necessarily threaten an entire application.Container based services should be out of public domian, use of API gateway and tools to monitor the application are best ways to keep app away from vulnerabilities. The jar files should always be looked forward to check on latest vulnerabilities (read: OWASP) and static/dynamic scanning of code is always advisable.
As banks move ahead on their modernisation journey, the microservices-based architecture will not only make the milestones achievable but will also make the journey pleasurable and less taxing.