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is likely to bring notable cost savings," the report states. matter where they’re deployed—cloud, private cloud,
"We expect banks to be increasingly focusing on this public cloud, or any combination.
throughout 2022.”
This non-restrictive approach provides banks and financial
There is a real opportunity here for banking organizations institutions with the flexibility to consume whatever events
to build a tech stack that offers many more benefits and they want, with no complex integrations. Even if they want
a richer environment than simply meeting ISO 20022 to consume these events in a cloud or at another site – the
requirements. event mesh takes care of making the right event stream
available wherever they want.
Every bank has a different journey ahead based on its
technical debt and strategy. Software architects face And now for the tech and business benefits
decisions when moving forward with their infrastructure— An event mesh built with a network of event brokers
do they build their own tech stack to meet ISO 20022 and dynamically routes events across the payment ecosystem
further modernize their payment process, or do they look for faster and more efficient transaction completions. Yes,
to third-party vendors, and/or opt for complex integrations? there are technical benefits—such as the ability to unlock
legacy assets, leverage best-of-breed technologies, prepare
For the software architect there are more questions: Are for open banking and simplify governance.
they going to use cloud for certain workloads, while
staying on premise for others? Are they going to need real- The business benefits are equally significant: reducing
time analytics, insights, and fraud management? How are cost per transaction, accelerating payments, sharing
they going to deal with bursts, lowering value and cost, institutional knowledge, and streamlining partnerships
and increasing volumes of transactions? so that banks can offer products through other businesses
Success lies in a compliant, modernized system and payment providers without causing IT headaches.

This is where an event-driven architecture (EDA) and an There are also noteworthy traceability and end-to-
event mesh can address not just the immediate need to end observability benefits across a payment ecosystem
comply with new ISO 20022 standards, but also the pressing underpinned by EDA. Embedding distributed tracing into
need to modernize banking and payments as a whole. an event mesh emits trace events in OpenTelemetry format
Event-driven architecture is a design pattern that has been so banks can collect, visualize and analyze them in any
adopted by digital leaders across industries reliant on real- compatible tool, empowering them to not only confirm
time data dissemination, such as capital markets, retail and that a given message was published, but easily understand
aviation. exactly when and by whom, where it went, down to
individual hops, who received it and when ... or why not.
The core of EDA is the business “event,” where something
occurs—for instance, a payment transaction—that drives Recent research by Solace on the EDA migration (https://
the immediate distribution of information about that event solace.com/eda-survey/) validates a growing appetite in
so systems and people across the enterprise can react to financial services for event-driven architecture. Specifically,
it. The fundamental building block of EDA is the event the study shows that financial services was the most
broker—an intermediary that routes data between systems advanced sector exploring EDA, with more than a quarter,
that publish event information and those that subscribe to (27 percent), of financial services companies having a
this information. central team promoting EDA within the organization and
looking at using the technology platform to better detect
Events are published on “topics,” which are like addresses and react to opportunities or threats in a timely manner.
on courier boxes. They consist of a noun, verb and some
meta data. For example, "payment" being the noun, "settled" Keep up with the banking and
being the verb, and "SGD, Internet Banking, Hong Kong" financial services evolution
being the meta data, collectively giving us a topic like "pay/
settled/sgd/ib/hk." The need to distribute information swiftly and easily
internally and externally has never been so important, and
Once published, events can be subscribed to by various the mandated ISO 2022 standard only highlights this. As
applications, for example, "pay/settled/>" will generate all the deadline looms, financial institutions must consider
payments that have been settled, while "pay/*/sgd/ib/>" how an event-driven approach can help not only reach
will give you all internet banking payments in Singapore. compliance but also place themselves in a strong position
These event topics can then be mapped to the metadata in to adapt and succeed in a volatile marketplace.
the ISO2022 standard for easy event routing.
Sumeet Puri, is chief technology solutions officer at Solace, https://
Now, enter the event mesh. This is a network of event solace.com, which helps enterprises adopt, manage and leverage event-
brokers that dynamically distributes information about driven architecture, with a complete event streaming and management
events from one application to any other application, no platform. Contact him via LinkedIn at linkedin.com/in/sumeetpuri.

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