Microservices architecture, or more simply microservices, refers to a method of designing and developing software as self-contained, deployable components that can be combined to create services. 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.

Celent defines each of these architectural elements and specifies their essential value propositions, which are: Faster to build; Easier to maintain; Quickly scalable; and Able to leverage advanced analytics and security services offered by cloud providers. Microservices offer potential insights on a number of levels for banks today facing issues from how to create loyal digital communities to establishing new digital customer relationships.