Enhancing competitive capabilities in financial operations with TIBCO payment infrastructure.

Commercial banks and financial companies need to handle large volumes of customer data coming from multiple sources, in various formats and data types. Pioneering enterprises will turn these challenges into growth opportunities, with the key lying in their data architecture. Event-driven architecture (EDA) addresses the dilemmas of financial organizations in accessing and utilizing real-time data, enabling strategic decision-making.

In information technology, an event is essentially a business moment - a crucial piece of data that businesses want to track. In the digital age, an event could be a customer applying for a mortgage refinancing online or calling a branch to inquire about options for a checking account. Events are inherently transient, and their value diminishes over time. The goal of organizations adopting Event-Driven Architecture is to capture and act upon events as they occur, maximizing the value of data and avoiding missed opportunities.

The reason Event-driven Architecture (EDA) is considered a missing link for commercial banks and financial companies lies in the challenges they face regarding data, as highlighted in the World Retail Banking Report 2022 conducted by Capgemini and Efma. These challenges include:

1. Failure to generate value from data.
2. Lack of resources to handle and analyze data.
3. Data silos.

Globally, it's estimated that 76% of businesses are currently in a state of "digital deadlock," meaning they haven't progressed beyond previous norms to adapt to the new market demands. Many financial organizations are attempting to address data challenges with an API-led strategy, which represents a significant step in digital transformation. However, APIs are designed to handle integration point-to-point transactions. To leverage the value of data, businesses need more. Event-driven architecture takes on this heavy lifting, strengthening real-time data analytics and providing a comprehensive view of events.

An event never occurs in isolation; it's interconnected with other factors. For example, a customer contacting a bank to refinance a mortgage asset may also be interested in paying off a credit card debt. Two events happening with the same customer could automatically be connected into one event, such as offering that customer a special-rate loan. All these transactions could occur on a mobile banking app. This example showcases the flexibility, speed, and seamlessness that EDA can bring to a business.

For organizations that have pursued an API-driven approach and still face data challenges, EDA may be the missing link, the final piece of the data puzzle to handle data at the necessary speed and scale for a customer-centric strategy.

Event-driven Architecture is essential for the future growth of the financial industry. Data challenges lead to ineffective operations on both the front-end and back-end. For financial service organizations seeking to increase wallet share, improve customer retention, and boost revenue, the layering within EDA with existing data technologies will provide a solid foundation for growth.

According to McKinsey research, deploying modern data architectures that support data processing and analysis on a large scale is more common in high-performing companies. It's no coincidence that these companies have been able to achieve revenue growth rates over 10% higher than others in the past three years.

EDA forms the backbone of real-time analytics and data strategy. It provides the necessary architecture to support flexible data structures and other advanced data technologies. Combined with APIs, EDA helps organizations optimize customer experiences and business processes. For example, EDA can enable banks to offer automated, hyper-personalized recommendations to customers in real-time, while also enabling them to identify and respond faster to potential fraud activities. Some key capabilities of EDA include:

• Easy integration
• Real-time data access security
• Flexible and fast architecture for low latency, high availability, and real-time enterprise user services
• Reliable data
• High adaptability, reusability, and low code
• Support for team processes

These capabilities help financial organizations derive real value from their data, leading to better decision-making, greater business development potential, improved customer experiences, increased satisfaction, and customer retention, among others.

Some use cases and applications of EDA worldwide:

ENAO is a preferred partner of TIBCO in Vietnam, with many years of experience in software development and providing outsourcing services, consulting, and deploying solutions using advanced technical solutions to help businesses solve complex issues that arise in their digital transformation journey.