Velmie

We at Velmie know that the financial services industry historically has been riddled with barriers to entry. Challengers found it difficult to break through low margins and tightening regulations. However, large enterprises that once dominated the market are now facing disruption from smaller, leaner fintech companies that are eating away at the value chain. These disruptors are marked by technological agility, specialization and customer-centric UX.

To remain competitive, financial services firms are reconsidering their cumbersome technical architectures and transforming them into something more adaptable. A recent survey of financial institutions found that about 85 percent consider their core technology to be too rigid and slow. Consequently, about 80 percent are expected to replace their core banking systems within the next five years.

Emerging regulations meant to address the new digital payment economy, such as PSD2 regulations in Europe, will require banks to adopt a new way to operate and deliver. Changes such as PSD2 are aimed at bringing banking into the open API economy, driving interoperability and integration through open standards. To become a first-class player in this new world of APIs, integration and open data, financial services firms will need the advantages provided by microservices.