Microservices Architecture: Refining Digital Banking Solutions for Post-COVID World

June 2, 2020

iauro Team

Principal Consultant Micro-Frontend & Microservices LinkedIn

The effects of the pandemic are not lost on businesses irrespective of their domain. Consumers of financial services are desperate to find the pre-lockdown comfort again and digital channels seem to be the only visible option. However, looking at the problem from a perspective of financial institutions like banks, things seem much more complicated. Facilitating their services with digital banking solutions is one thing. Scaling up to an entire customer base solely through this medium is a different ball game altogether. How will the banking industry ensure its readiness to serve its entire clientele with digital platforms? What are the complications they need to understand? How effective the Microservices Architecture is in this regard?

Looking at the New Normal

The post lockdown world looks very different from the one that all of us closed our doors on. Social Distancing is a necessary devil and physical contacts are going to be lesser to none. In terms of banking this would mean:

  • Less number physically going to the banks that would already be working with minimal staff for a while
  • Even the ones going to the banks will prefer minimal contact during their entire interaction with the bank employees and resources like forms, cheques, etc.
  • Outside the bank, the financial transactions can expect a steep spike in the demand for cardless transactions. In fact, plastic ATM cards might as well be looking at extinction.
  • Moreover, the existing digital services may need some realignment to ensure maximum engagement from customers. Banks will need to attain new competitive advantages that are compliant with the new norm.

In short, far too many new services will have to be added and the existing service will have to be modified. All this, of course, before the competitors. It is a problem for speed, scalability performance. It is a problem for Microservices

Microservices and Banking

Microservices development follows what is called a domain-driven approach. It looks at a solution as a collection of coherent knowledge contexts or domains. Each domain is autonomously developed with corresponding microservice units and then all the domains interact with each other to make the solution work. Microservices can handle existing domains like core banking, user alerts, loan profiling, etc. The banks can also gradually work on incorporating new services and offering to retain and attract customers.

Here are the benefits that banks can have by incorporating microservice-based solutions:

  • Seamless Integration: The existing infrastructure doesn’t need to be thrown away. The microservice-based solutions shall integrate with it without hassle. Owing to the flexibility of the architecture, these solutions will help the organizations save their expenses and even evolve the existing applications for better performance. Even for the customer’s point of view, this is a big help as they will also get enough time and space to adjust to the changes. Even services like customer authentication that deal with a huge clientele on a very regular basis can work as if nothing has changed for them
  • Tighter Security Measures: Security is one aspect of banking that cannot be compromised with at any level. We are talking about crucial customer data including their authentic  identification and financial details. Communication through Application Programming Interfaces (APIs) enables Microservices to handle the security aspect on priority. They can even deal with third party applications that the banks may use for additional services. The data that the native applications operate on can be communicated securely both internally and externally without any security risks.
  • Additional Features: Developing additional features on top of the existing ones will give the customers a sense of freshness. While they might be robbed off some older benefits, they can enjoy some new ones that are well adjusted to their present needs. Furthermore, these new features will help financial institutions to attract a larger number of customers. This will, of course, not be possible without the scalable architecture of Microservices. Microservice domains will even ensure resilience in case of potential failures so that the whole application keeps on running.

Conclusion

COVID-19 might have thrown a few roadblocks for banks and other financial institutions, but they will still find workarounds as they always have. Digital Banking Solutions are an example of banks’ determination to aid its customers. Microservices Architecture is the best contemporary technology that can facilitate this determination. While the world is learning to adjust with the post-pandemic normal, the banks are ready to serve.

Know more about the benefits of Microservices development for your business here:

https://www.iauro.com/microservices

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