Welcome!

Microservices Expo Authors: Yeshim Deniz, Elizabeth White, Liz McMillan, Carmen Gonzalez, Pat Romanski

Related Topics: @CloudExpo, Microservices Expo, @ThingsExpo

@CloudExpo: Blog Feed Post

Digital Transformation in the Retail Banking Industry | @CloudExpo #Cloud #FinTech #DigitalTransformation

Like other industries did before it, retail banking is riding a bucking bronco of digital transformation

Digital Transformation in the Retail Banking Industry
By Omed Habib

Like other industries did before it, retail banking is riding a bucking bronco of digital transformation. While customer satisfaction levels drop and government rules and regulations continue to expand, retail banking seeks new ways to adapt to the massive changes in how consumers interact and use financial products and services.

However, unlike other industries such as book publishing that have been rocked by the tsunami of digital changes in the marketplace, companies in the banking sector also have to comply with extensive regulations intended to protect consumers. In confronting this new landscape, banks are looking at better ways to use their existing data in real-time to improve customer experience and loyalty, comply with a growing number of government rules and privacy laws, and consolidate disparate IT systems in their current infrastructure. Banks must provide a seamless experience for customers no matter which product or service they choose.

Digital Banking
Retail banks have gone digital - using online channels (e.g., mobile, web, etc.) and new technology to improve customer experiences and employee productivity. Common programming languages used in banking include Python, C++ for speed, C# for trading platforms, Java, Scala, HTML5, and .NET. This allows the institutions to introduce new features and services rapidly without the need for constant updates from vendors. It also reduces errors that are due to lack of manual oversight.

The network becomes more virtualized - rather than each router and switch on the system with set data paths solely on the destination address, a centralized controller creates the optimal path based on predetermined criteria set by the network operator. Operations can be managed with a small set of software tools, allowing users to achieve business objectives and KPIs faster and easier as the organization becomes more adaptable to change.

In essence, banks are becoming technology companies - they want to embrace a software-defined business structure because they have no other choice. Customers don't think of banks as an offline or online institution. To them, it is all the same, and they expect to have a positive experience no matter which channel they use to obtain service. If a consumer does all their banking through an app on an iPhone, that becomes their entire banking experience. Without a robust mobile app, banks are short-changing their future because customers will gravitate to more technology-savvy institutions.

Slow Adoption
One of the reasons banks are slow to adapt to a digital world is that it costs a tremendous amount of money and time to change out legacy systems. Integrating new digital technologies with legacy backend systems requires an enormous amount of capital investment. Furthermore, massive changes increase the risk of exposure to potential security problems, which are a constant threat.

Microservices and Containerization
Like many traditional businesses that have maintained legacy enterprise systems for decades, retail banks are stuck between relying on the tried-and-true monolithic legacy systems that already work and moving to provide innovative services and technologies to a mobile-first consumer community that craves the latest technology. One way retail banks meet this challenge is to adopt cutting-edge technologies such as microservices, containerization, and APIs.

Microservices are applications made up of independent processes that talk to each other using APIs. Each process handles a single small task, allowing developers to build highly modular software applications that can be rapidly developed, modified, and deployed - and also reflect individual business units and initiatives in contrast to mini-projects and individual features.

Containers allow users to run software on multiple computing environments without worrying about the type of underlying OS, network, or infrastructure. Each container has a full runtime environment - an app and its libraries, dependencies, and config files. This enables it to run on everything from virtual machines to a cloud-based PaaS.

Legacy Systems
One of the major benefits of these technologies is that a retail banking firm can implement them alongside their legacy system. They can adopt new ideas and approaches without threatening the stability of their current operation. This way, they will meet their obligations to government regulations such as Dodd Frank, Solvency II, and BASEL III. With containers and microservices, retail bank DevOps can rapidly update new features and functions without the threat of a company-wide outage or performance hits.

In effect, banks should be less concerned than they were in the past about owning and maintaining their entire IT infrastructure. Instead, different functions are broken into components, some of which will be managed by third-party providers. This reduces technological overhead and increases the number of resources available on a strategic level.

Lacking the Human Touch
Software-defined banking may reduce the trust of some consumers because of the potential reduction in human interaction. Traditional banks have an advantage over Internet-only banks because their customers can get to know the manager and employees at a local branch. If consumers have a problem, they can turn to people they know to help resolve the situation. Local branches may also provide some services that are not available to consumers online. This is especially important for local businesses that rely on banks to provide capital for purchasing inventory, equipment, and business expansion.

As software systems continue to evolve and become more efficient, the need to employ additional staff across the institution diminishes. This can have a drawback effect over time as customers who prefer to work directly with bank employees may discontinue patronage.

ME Bank Adapts to Digital
One example of a forward-thinking financial institution is ME Bank in Australia, which won a Mozo award in 2016 as the Expert's Choice for Australia's best bank. Owned by a consortium of super funds, ME Bank started in 1994 by offering home loans and has since expanded to offer credit cards, personal loans, automobile loans, insurance, and other services.

In a recent interview with Business First magazine in Australia, ME Bank's CEO, Jamie McPhee, talked about the challenges of banks adapting in the digital era. He said that we are moving from the industrial age of mass production to a new era that uses data to create a better customer experience. The digital transformation, he said, is affecting every business.

When he took over the CEO position in 2010, McPhee immediately began employing digital tactics. His belief is that banks who survive in the new digital age can adapt technology to meet customer expectations and demands. While many banks are incorporating newer technologies, McPhee went a step further, creating a shift to a "digital first" philosophy.

He was also a leader in the move toward mobile banking. Early on, McPhee recognized the rise of mobile banking and the desire for consumers to complete transactions through smartphones and other portable devices. He noted the success of ING Direct, which launched in 1998 without any brick-and-mortar locations, yet garnered 5 percent of the retail banking market in short order. McPhee's efforts have paid off. In 2014, ME Bank garnered a profit of almost $37 million (AUS).

ME Bank's experience is instructive. They realized that successful banks, and indeed businesses across the industrial spectrum, must customize data to meet customer expectations, needs, and desires.

Management and Monitoring

Retail banks can minimize and prevent UX issues by deploying software that manages and monitors the performance of their applications, alerting them to problems well before they reach crisis levels. Application performance management (APM) tools such as AppDynamics alert your internal teams to problems in the critical transactions that power your business. By monitoring software and performance optimization, you can detect serious issues before your users do, which helps maintain the level of service your customers expect.

The post Digital Transformation in the Retail Banking Industry appeared first on Application Performance Monitoring Blog | AppDynamics.

Read the original blog entry...

More Stories By Jyoti Bansal

In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

@MicroservicesExpo Stories
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
The IT industry is undergoing a significant evolution to keep up with cloud application demand. We see this happening as a mindset shift, from traditional IT teams to more well-rounded, cloud-focused job roles. The IT industry has become so cloud-minded that Gartner predicts that by 2020, this cloud shift will impact more than $1 trillion of global IT spending. This shift, however, has left some IT professionals feeling a little anxious about what lies ahead. The good news is that cloud computin...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
An overall theme of Cloud computing and the specific practices within it is fundamentally one of automation. The core value of technology is to continually automate low level procedures to free up people to work on more value add activities, ultimately leading to the utopian goal of full Autonomic Computing. For example a great way to define your plan for DevOps tool chain adoption is through this lens. In this TechTarget article they outline a simple maturity model for planning this.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The rise of containers and microservices has skyrocketed the rate at which new applications are moved into production environments today. While developers have been deploying containers to speed up the development processes for some time, there still remain challenges with running microservices efficiently. Most existing IT monitoring tools don’t actually maintain visibility into the containers that make up microservices. As those container applications move into production, some IT operations t...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Software development is a moving target. You have to keep your eye on trends in the tech space that haven’t even happened yet just to stay current. Consider what’s happened with augmented reality (AR) in this year alone. If you said you were working on an AR app in 2015, you might have gotten a lot of blank stares or jokes about Google Glass. Then Pokémon GO happened. Like AR, the trends listed below have been building steam for some time, but they’ll be taking off in surprising new directions b...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...