Updated: 06 August 2024
Streaming Technology on the Rise: Batch Processing Approaching Sunset
Batch processing has been a cornerstone of the banking industry, managing end-of-day tasks and data transfers to essential systems. Streaming Technology, however, is transforming approaches to risk management.
For many years this approach worked well for organizations both in terms of technology as well as operational efficiencies, despite some of its challenges.
Key Challenges with The Status Quo
This approach is increasingly seen as outdated due to several critical challenges:
- Delayed information availability
- High implementation and maintenance costs
- Complex system dependencies
Information delays limit timely risk analysis and decision-making, while high costs and system complexities hinder operational efficiency. The COVID-19 crisis further exposed these limitations, emphasizing the need for more agile and responsive systems.
Dawn of New Technologies
A technological shift inspired by innovations from technology platforms like LinkedIn, Google, and Netflix is transforming banking from batch to real-time processing. This new wave of banking technology is based on the fundamental principles of:
- Data streaming technology
- Targeted scalability
- Microservices architecture
- Polyglot frameworks
- Open-source adoption
Transforming The World of Risk Management via Real-Time Information Processing
These innovations promise significant benefits:
- Real-time data availability
- Reduced costs
- Enhanced flexibility
Banks are already integrating these technologies in frontline systems, with middle and back-office functions expected to follow. Real-time processing can revolutionize transaction processing, stress testing, management reporting, and trading platforms, offering timely insights and operational agility.
The 4 Key Pillars Driving This Revolution
To learn more in detail about the 4 key pillars drivers of the revolution, the insights of how this transformation is unfolding, and the specific technologies driving it, download the full whitepaper co-authored by ElysianNxt and Regcentric.
About ElysianNXT
ElysianNxt's Basel, IFRS9, and ALM solutions are part of a pioneering, end-to-end Financial Risk platform that was built using the latest streaming technologies. By using a distributed microservices architecture compared to a traditional central-database design, the solution can process large quantities of information in real-time. Users can react quickly to changes by performing real-time stress testing and running multiple simulations on the fly to see the immediate impact in minutes. The user-friendly system interface design provides useful information from the portfolio level, which can be drilled down to the contract level and exported in various formats.
