Banks have been taking care of everyone's financial requirements for a long time. Do you want a safe place to save your money? Bank. Do you need a loan for your home or business? Bank. Do you require a money transfer? Bank.
For some years, smaller rivals have disrupted these two aspects of the banking business—lending and payment—and banks have lost significant income to inventive and tech-savvy fintech firms.
Organizations have now employed fintech app software solutions to let users open bank accounts, conduct transactions, pay bills, manage payments, produce invoices, and create and sign documents all on one device.
However, it also comes with a strict requirement for digital banks to continuously innovate, improve their functionality, and swiftly and effectively implement new features.
This may be the scenario where a microservices architecture can assist fintech firms in becoming customer-centric and providing individualized services.
In this article, we will be going over some proven reasons why microservices will be a game-changer for mobile fintech apps in the next few years.
Read more: 5 unexpected benefits of mobile wallet for businesses
QUICK OVERVIEW
Microservices revolutionized the way programs are designed, maintained, and supported after they've been released.
More importantly, they have fundamentally altered the way engineers and management think about digital goods.
The concept behind them is simple: let's build something scalable to fuel a fast-paced market with a continual demand for change.
According to Statista, microservices were implemented by 71% of enterprises in 2021, with 37% doing so partially.
Moreover, on average, microservices can boost productivity by 50% and cut overhead expenses in half.
If you're still on the fence about using microservices in your next fintech mobile app, here are a few things to think about.
Read more: Monolithic or Microservices? Which is better for your firm?
MICROSERVICES' 3 KEY ADVANTAGES FOR FINANCIAL SERVICES
1. Better agility
The primary reason to choose a microservices architecture is probably agility.
In most cases, banking software solutions must service thousands of clients while also accommodating an increasing number of users and demands.
When a system is not scalable, users may experience performance difficulties, downtime, and errors.
A microservice is deployed and managed separately since it is a self-contained entity. As a result, it's critical that it fulfill a precise, well-defined business role.
In order to stay ahead of the competition and gain clients, financial firms must also deliver new products and upgrades quickly. With a monolithic program, this is a difficult process.
However, with microservices, there is no need to schedule time-consuming integration work across many teams in order to upgrade a specific service.There's also no need to retest the entire system because everything is self-contained.
2. Improved security and compliance.
Fintech security infrastructure faces new issues as a result of modern fintech needs.
Features such as a digital wallet, robo advice, blockchain, and others necessitate the presence of a strong security system.
As a result, financial institutions that deal with highly sensitive data such as personal user data, transaction details, and billing data must ensure data privacy and compliance.
Banking software may be made more secure and compliant by implementing a microservices design. For example, if potential concerns are discovered in a certain module, software specialists can devote all of their efforts to resolving them as quickly as possible while the rest of the system remains unaffected thanks to loose coupling.
According to a recent IBM study about microservice in 2021, 29% of respondents believe they were able to increase the security of company/customer data, while 26% say they were able to improve application protection.
Read more: Will Fintech startups replace banks?
3. Seamless integration
The integration layer is the brains of a Fintech product that must interface with several other financial services via APIs in a variety of forms.
When monolithic systems are combined, an ESB (Enterprise Service Bus) software is often employed to manage the process.
When this software gets too large and difficult to maintain, IT teams begin to wonder why they are unable to simply migrate to something simpler, given that they are locked into a vendor lock-in with the ESB.
Due to isolation, scalability, and resilience, microservices make the API layer easier to maintain and protect.
Fintech companies frequently need to link with other financial institutions and banks, therefore having a microservice architecture for your business app is incredibly essential.
FINAL WORDS
Because of the ongoing demand from customers and regulations, developers must constantly change in order to stay afloat.
Fintech apps, at the same time, may have the speed, flexibility, and performance they need to survive and grow if microservices are properly implemented. Adopting microservices as a long-term approach will only help them achieve this.
It's not always easy, but it's always enjoyable. If you have a suggestion, please contact us; we are happy to assist you.
