Microservices Architecture helps Digital Banking businesses

The entire fintech industry has been growing incredibly fast because of the fast-changing customer needs. In pursuit of new and existing customers or, to be more precise, delivering better or more personalised services, fintech companies are continuously striving to improve and make their services more lucrative. Fintech companies and Digital banks as the first adopters of the customer-first patterns in financial services and are gaining traction very fast.

Being customer-first and delivering personalised services requires constant upgrades in product technologies and functionality. This might be the case when the microservice architecture may help Digital banks to continually innovate, improve their functionality and implement new features quickly and efficiently.

What is a microservice architecture?

A microservice architecture, also known as microservices, is an approach of developing software. Applications are split into independently hosted parts – autonomous from one another. This means that microservices break free from the conventional way of dealing with apps as one software component and offers a completely independent approach, where every single piece is still working together to accomplish the task.

How can microservice architecture help digital banks?

The microservice architecture permits digital banks to innovate and continuously develop sophisticated, large-scale software applications. The idea is that splitting applications into several services increases the quality and speed of delivery. In practical terms, the architecture allows the development team to carry out many development and testing projects simultaneously to enable all application components function as one.

Implement new services frequently

This type of architecture is designed to make more frequent changes and upgrades and ensure faster recovery, lower probability of failure and shorter lead time. For traditional applications, adjustments in one place may affect completely different application’s component and often not known. Consequently, it is a never-ending development-testing cycle that takes time and efforts – unacceptable in today’s fast-paced digital banking.

Implement new services easier

It is so much easier to operate with a microservice architecture because companies don’t have to start over every time, they are looking to add new component or services. For example, if a bank or fintech decides to integrate a new provider, it doesn’t have to start from scratch and rebuild the system. It means the team can develop, test and deploy a new application without having an impact on the entire product. In other words, businesses can effectively and cheaply integrate new applications or services.

Implement changes faster

Applications based on the microservice architecture allows companies to allocate tasks across different teams, and those teams can work simultaneously on application components without imposing additional functions on each other. Additionally, microservices is developed in a way that companies can break down the application into independent services. There is no need to plan time-consuming integration works across different teams to upgrade a particular service. Meaning that different units can work hand-in-hand to integrate new components swiftly.

What can we conclude?

Today, customers make their banking decisions about the bank they can trust based on their experience. This is why customer-first and digital-first are a critical part of any financial company to survive. Under such circumstances, the microservices architecture can help digital banks to accelerate time to market and improve their services. Advapay has many years of expertise in driving financial service digital experiences.

Moving with times, we are currently working on the upgrades of our Digital Banking Platform Macrobank to meet the microservice architecture principles, described above.

If you are interested to hear more about our experience and expertise, contact us.