Microservices in finance: Why building smaller is now a bigger deal for your bank

Cherukuru, Suman Kumar (2025) Microservices in finance: Why building smaller is now a bigger deal for your bank. World Journal of Advanced Engineering Technology and Sciences, 15 (3). pp. 2569-2578. ISSN 2582-8266

This article explores the paradigm shift from monolithic to microservice architectures in banking systems. Beginning with the historical evolution of banking technology, it examines how traditional monolithic structures—once beneficial for their integrated operations—now create significant limitations in agility, scalability, and innovation capacity. The discussion contrasts these legacy systems with microservice architectures, highlighting how decomposing applications into independent, specialized services enables financial institutions to achieve greater resilience, technological flexibility, and market responsiveness. Strategic benefits for banks are analyzed alongside the synergistic relationship between microservices and cloud computing, which provides the ideal infrastructure foundation through container orchestration, service meshes, and observability tools. The article addresses critical considerations for implementation, including security requirements, regulatory compliance challenges, and migration strategies. Finally, it examines common obstacles in adoption, the organizational transformations required, governance frameworks, and emerging trends shaping the future of microservices in financial technology.