Microservice vs monolithic architecture: what’s the difference?
In general, there are two basic strategies of system development: monolithic and microservice. The former was mainly used in simple systems consisting of a single feature. The latter, on the other hand, started to become popular a few years ago, when a need for large and complex platforms arose.
However, despite the rapid changes in technology, banks, and financial organizations were struggling to catch up with the new trends in system architecture. Although many of them claimed to be focused on digital transformation, they often failed to introduce microservices architecture in order to support additional features implemented in their apps and platforms. As a result, the changes are illusory, and they will shortly require additional (and often expensive) adjustments.
Multichannel platforms: a simple solution to a complicated problem
The solution to this problem is easier than it may seem. Multichannel platforms based on microservices’ architecture are capable of supporting a variety of features, options, and apps widely used in the banking industry – and they require no further adjustment. But how exactly can they be beneficial for the bank?
First and foremost, multichannel platforms with microservices include a number of features that can be managed and improved separately, as modules. Thus, the maintenance cost of those parts is significantly lower. Secondly, thanks to microservices different technologies can be used and implemented together in one platform with no additional adjustments. Thirdly, each module can be scaled and developed separately, according to customers’ requirements. Last, but not least, if an unexpected malfunction occurs in one of the services, others can still operate normally while the issue is fixed.
Introducing multichannel platforms: a hard decision or a necessary commitment?
The complete reconstruction of banking systems is a difficult task. What is more, it will also call for an enterprise-wide transition towards microservices which is critical for maintaining the efficiency of the digital ecosystem. Even though tech debt is still growing, many companies find it tempting to stick with obsolete, monolithic systems. Such an approach poses challenges in terms of agility and innovation.
Still, in the last few years, a few additional factors appeared on the market – and they made it easier for banks to take a step towards more innovative technologies. Those factors include microservices becoming a fully developed technology and sufficient legislation having been introduced to the financial sector. Taking that into consideration, we can distinguish two strategies for introducing the new, multichannel platforms based on microservices systems:
- Holistic replacement of an existing platform.
- Gradual reengineering of the existing platform.
The latter solution requires additional preparation that may include defining the product roadmap, creating a sufficient abstraction layer and gradual separation of services from the monolithic structure of the obsolete system. Despite the complexity of the process, it is also exceptionally beneficial for the bank, as it enables them to integrate and provide access to third parties with open standards, data security, and scalability.
Omnichannel platform introduction with professional support
Such an enormous technological advancement can be very challenging, as it requires extensive knowledge of systems and technologies that may be used for implementing necessary features. Ailleron specializes in that type of projects – regardless of their size or difficulty level.
Right now, we can offer you a Corporate and Business Banking Platform perfect for the biggest customers your institutions may want to serve. We can not only provide the technology of choice – we can also help your bank prepare a sufficient strategy and plan for the entire transformation process. What is more, we can also ensure its safety and suggest changes that could improve customer service in the future.
Experts claim that in 2022 90% of IT solutions for the banking industry will be based on microservice architecture. Thus, now it is the time to act – upgrade your banking app and make the future look brighter than ever.