To stay competitive, especially with digital startups unencumbered by legacy systems, traditional financial institutions (FIs) need to deliver seamless customer services to individual consumers and enterprise customers alike.
To that end, Vincent Caldeira, chief technologist for FSI in APAC for Red Hat told PYMNTS, FIs — especially incumbent FIs — are facing rapid changes in payments that demand they modernize payments processing, embedding new functionality along the way.
Drilling down a bit, Caldeira said that the speeds of money transfers themselves are increasing across any number of use cases and verticals, and crossing borders with growing frequency.
With global reach, Caldeira said, comes the need to scale globally, too. For many firms, with legacy infrastructure that has been in place for decades, scale becomes difficult. Simply put, the back-office systems are ill-equipped to handle the demands of technological innovation, especially as financial services cross channels.
“You don’t want to break your back-end systems,” Caldeira told PYMNTS. “You want to provide your customer with new and differentiated services, but at the same time, there are limitations to systems’ ability to scale without affecting stability or performance.”
This is where open source technology has typically come to the rescue, in particular containerization and container orchestration technology based on the Kubernetes ecosystem, which allows FSI players to secure, manage and scale horizontally their payment processing functions across different computing environments.