Finacle Architecture Diagram Software Architecture And
They are also able to use this initiative to bring digital transformation to their organizations.When building a digital transformation strategy within the banking industry, there are two main focus areas to consider: the actual business needs and the technological approaches that should be available to fulfill them. Flip the machine on using the electricity change Positioned at the rear of.From our experience, banks that take on open banking as a disruptive growth opportunity can go beyond fulfilling the regulatory mandate, entering new markets and creating new business models. With the pandemic and a number of new regulations, such as open banking, pushing the need for online/digitized services even further, digital transformation is not a one-step approach, but rather an agile iterative process.Plug the facility twine into your binding machine and also a grounded socket outlet. However, these approaches should be carefully evaluated to avoid risk and ensure security. The banking sector is continually adopting modern approaches and API-led integration to optimize operations, add value and provide enhanced customer experiences. Microservices is a software architecture and delivery paradigm that delivers functionality by composing a number of small runtime services although perceived.
When considering online banking, electronic fund transfer (EFT) services (e.g., ATM, credit and debit) and mobile banking, supporting stand-in processing for key services (24×7) allows consumers to use banking throughout the day.Most of the core banking systems are brought down, usually during night hours, to start end-of-day batch processing. Stand-in Processing for Core Financial ServicesMost online/mobile banking users are familiar with notifications stating that transactions made after a certain time are processed the next day. This is a tedious task, as we are looking at various legacy systems, vendor-specific applications and built-in processes — different protocols, message formats, business logic and technologies — that should work together seamlessly.
Open APIs and StandardsThe introduction of open banking and additional regulation brought on the need to share data, such as account/payment information, with customer consent among other third parties such as financial institutions and fintech, regionally and globally. This calls for capabilities such as message transformations, file processing, data polling, reporting, data as services and integration with message brokers. Once nightly processing is completed, updates of the copied files need to be processed back to the core banking system before it begins the usual processing.From a technical standpoint, in order to support stand-in processing, a caching layer/store needs to be built in a dedicated system that can process data as well as ensure that there is no data loss. This allows 24×7 services to operate as usual.
Consider exposing the data layer, which can be in various sources/formats (databases, spreadsheets, CSV files, etc.), as reusable standard services such as REST/SOAP will be beneficial from a maintenance aspect as well as to assist with seamless future innovations.Also, there could be many proprietary (legacy/cloud) systems involved in various processes, which may not have standard service extension points and may support different messaging formats. It is also crucial to carefully design the data layer and to expose it securely as there are various databases and reports that are generated on a daily basis in a typical bank’s architecture. However, the following section discusses the core capabilities any integration platform should provide to bring about dynamic changes to every aspect of the business, such as converging divergent technologies, adopting agile strategies and becoming laser-focused on personalizing the customer experience.When considering generic integration requirements, the ability to support enterprise integration patterns (message routing, transformation, correlation, incorporating with messaging systems, etc.) and support for various protocols and message formats (HTTP, HTTPS, JMS, REST, SOAP, FIX, ISO8583, FTP, JSON, XML, EDI, etc.) helps with seamless integration between the numerous systems that are involved in the banking landscape. When the number of applications and delivery channels increases, problems such as task duplications can lead to inefficiencies and reduce time to focus on strategic value-added tasks.Reference architecture with WSO2’s integration platformThe above diagram depicts the use of the WSO2 integration platform in a typical banking architecture.
A preferred messaging system (e.g., JMS brokers) can be connected to this internal layer to ensure guaranteed delivery between the core banking layer and the middleware. This highlights the requirement of templated connectors in an integration solution, which provides service-type operations by wrapping any vendor-specific complexities so that the bank only needs to worry about the business logic.As for the stand-in processing requirement, an intermediate caching layer can be built using the data services and the mediations incorporating any business logic that are developed. It is not scalable for each of these applications to maintain integration flows with the core banking system. This becomes cumbersome, as there could be a lot of other internal applications that connect with the core banking solution.
Unless specified in a regulation, most banks follow standards such as OAuth-token-based security and OpenAPI specifications for REST APIs. Ensuring proper API security for an API-based approach is key as the exposed data is at high risk. The ability to visualize any operational insights/metrics around those operations, such as ETL/CDC, will be useful as a feedback loop to improve those processes and to troubleshoot.While improving the integration needs with internal digital innovation, there comes a point where external parties would need access to certain services, which highlights the need to expose managed services responsibly (i.e., API management). In addition, large file processing/transfer is an important aspect to consider when aligning the various backup mechanisms and batch processing operations that take place. Streaming integration capabilities can be used in such a scenario by providing change data capturing ( polling and listening modes) and advanced ETL ( extract-transform-load). At a high level, once online, the core banking system needs to pull any offline transaction-related data and update the internal systems and flag any such transactions to be processed.Most banks do not have the required technology to implement these required tasks in their existing infrastructure.
Proper authorization mechanisms, such as OAuth2 scopes, should also be taken into account to make sure that the exposed service operations are only accessible to the intended consumers.
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