FINANCE

Fincons Fast Data Lake: the Digital Integration Booster for Open Banking

 

Published 6 February 2020

Today’s consumers expect to interact with their bank across multiple channels and touchpoints, as well as to access information seamlessly through apps, online portals or telephone banking to check account balance and transactions, eliminating the need to visit the branch or ATM. The expectation to access information at increasing speeds across multiple channels is now the norm, with 72% of all bank interactions now digital and digital self-service becoming a high priority for consumers under the age of 53[1] according to a recent FIS report.

Contributor

The growing need to put user experience at the heart of the banking sector is, therefore, driving the imperative to develop middleware solutions that lighten the burden on legacy systems and improve access to data and analytics. Implementing APIs and microservices architecture enables banks to add capabilities without overhauling their back-end systems entirely. However, this comes with its challenges.

Not only are banks currently threatened by competition to keep improving their customer experience, but regulatory change is also forcing banks to pick up the pace in their digitalization efforts. PSD2, Directive (EU) 2015/2366, was drafted with the objective of opening up competition in the payments market to non-banks and defines the rules and obligations of market players, serving as a move towards Open Banking. One of the impending obligations is for banks to share their customer data with other players, which leads to hefty requests on banks’ legacy systems, and subsequently result in an avoidable lack of efficiency.

The Fincons Fast Data Lake solution

As reported in our ‘Achieving digital potential: new solutions to overcome limitations of legacy back-ends’ whitepaper, Digital Integration Hubs are recognized as the new design path to provide data to front-end applications in a cheaper, faster and more flexible way.

Fincons Fast Data Lake is a best practice example of this architecture design, providing a High-Performance Data Store fed by legacy systems in real-time through a highly engineered ingestion procedure.

It provides an API layer to rapidly access data, ensuring speed to front-end inquiry functionalities while reducing the load capacity required of legacy systems (mainframe offloading), and protecting them against the potential risk posed by unpredictable request volumes.

To find out more about addressing the financial, technological and compliance risks banks are facing and how adopting a Digital Integration Hub will help businesses shift the focus on to customer experience and reduce customer churn, download the full whitepaper here: https://go.finconsgroup.com/FastDataLake_whitepaper_banking

[1] FIS, Performance Against Customer Expectations, 2019