August 6, 2020
The financial services industry acts as a force multiplier of economic activities, from storing to creating wealth and providing access to credit. It has always strived to evolve with the changing needs of the consumer, and the digitization of financial services has been an ongoing process for the past few decades. Financial services can no longer offer generic solutions that target a wide range of consumers. Be it an individual working in a multinational corporation or a student, a neighborhood business, or a large-scale enterprise catering to a global populace, each client's needs are unique.
To address this diversity, institutions are consuming data from multiple sources inside and outside the enterprise. These include structured data from sources like enterprise systems, market systems, and government databases, as well as unstructured data from social networks and media.
In this article, we share some snippets from our recent white paper on using NoSQL databases in financial services organizations. This report, prepared by MEDICI in partnership with Aerospike, focuses on sharing knowledge and promoting interest in NoSQL databases and exploring collaboration opportunities and business benefits derived from NoSQL databases, specifically for the financial services industry. This report also explores Aerospike’s (one of the major NoSQL solution providers) vision of delivering informed and real-time decision-making for the financial services industry, with NoSQL-related case studies from Aerospike.
This report deep-dives in the following topics:
To learn more about this space and NoSQL’s value propositions, check out the MEDICI’s ‘Data Platforms in Financial Services – The NoSQL Edge’ report here.
One of the changes seen in financial institutions’ IT systems is the adoption of NoSQL databases.
NoSQL is usually referred to as ‘not-only-SQL,’ non-SQL, or non-relational databases. NoSQL databases such as key-value pairs are built for prime throughput versus relational databases with relative dependence. Utilizing loose dependencies and quick indexes, NoSQL databases are perfect for streaming analytics and IoT applications because data can quickly be stored and referenced from multiple, disparate data sources.
NoSQL databases represent an approach to data management and database design that’s useful for extensive sets of distributed data. They encompass a good range of technologies and architectures, seeking to resolve the scalability and Big Data performance issues that relational databases were not designed to deal with. NoSQL is particularly useful when an enterprise has to access and analyze massive amounts of unstructured data or data stored remotely on multiple virtual servers within the cloud.
The report thoroughly examines what a NoSQL database is, its types, and how its adoption can help in the digital transformation of the financial services industry. Access the report here.
NoSQL databases have increased in popularity with the rise of Big Data-based applications. Unlike relational databases, NoSQL databases are much cheaper to scale, capable of managing unstructured data, and better suit the current agile development approaches. Modern, cloud-based NoSQL databases offer five essential advantages that transform the way banks operate and serve their customers:
To explore the use cases in detail, access the report here.
Financial institutions are increasingly looking to move operational and delivery models from physical to digital platforms as more and more customers prefer these channels. NoSQL will play a critical role in enabling this shift and ensuring the high quality of services that their new digital clientele expects from them. Here, some NoSQL industry leaders, such as Aerospike, can be valuable partners in the transformation story.
Traditional architectures call for a large DRAM-based cache in front of a persistent store for high throughput and extremely low latency over large volumes of data. By contrast, Aerospike’s Hybrid Memory Architecture™ (HMA) offers a fundamentally different approach. By persisting data on fast SSD devices and leveraging primary key indexes (whether in DRAM, SSD, or Intel® Optane™ DC Persistent Memory), many advantages are realized without compromising performance while adding persistence, correctness, and security.
Aerospike empowers customers to fight fraud instantly, increase shopping cart size, deploy global digital payment networks, and deliver one-to-one personalization for millions of customers. Aerospike’s global line-up of customers includes Barclays, Charles Schwab, DBS Bank, European Central Bank, LexisNexis Risk Solutions, and PayPal. The company is headquartered in Mountain View, Calif., with additional locations in London, Bengaluru, and Tel Aviv.
Technology is going to play a massive part in this rapidly changing financial services business environment. Customers who are accustomed to instant updates through social media will expect a similar service from their financial service providers. This is only possible by removing constraints posed by traditional architectures that have existed over the years. Traditional databases are struggling to cope with the massive influx of data from multiple sources and multiple formats. On the other hand, NoSQL databases bring immense value when an enterprise has to access and analyze massive amounts of unstructured data or data that is stored remotely on virtual servers within the cloud.
Financial services have traditionally been innovators in technology. However, the baton has passed on to other areas in recent times, and the industry has struggled to cope with customer expectations. Innovations such as cloud and business analytics are yet to realize their full potential at scale in the industry. Modern, cutting-edge platforms such as NoSQL databases will help accelerate innovation to achieve its full potential so that the industry meets its consumers' demands and expectations.
Grab your copy of MEDICI’s ‘Data Platforms in Financial Services – The NoSQL Edge’ report here
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