This report explores the innovative and promising software engineering concept of microservices and the revolutionary architecture that is being built on modularization approaches for systems and businesses using them. Increasingly microservices have been thrust into the limelight as a transformative tool in software engineering. This report is the second in a series on digital transformation that examines legacy and ecosystem migration in Japan’s banking industry and the potential of emerging technology.

Source: James Lewis, Martin Fowler, Celent

Microservices are a key element in APIs and Open Banking. Understanding where and how they’re used is imperative for any nontechnical banker who wants to be part of tomorrow’s connected banking ecosystem.

This approach to development is extremely amenable to the current environment characterized by the proliferation of online services and accompanying noise about fostering fintech partnerships. Indeed, the very concept and approach to development, operations, and maintenance of microservices is progressive. It also sits at the opposite end of the spectrum from the highly integrated monolithic core systems of Japanese banks — both the massive self-run, in-house megabank-operated systems and the shared regional bank systems.