# The Challenges DrivingDemand forHigh Performance Infrastructure.
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-10-11
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: The Changing Face of Banking: Harnessing Technology for
Meta Description: Discover how high-performance technology infrastructure is crucial for success in the ever-evolving banking sector. Explore key challenges and solutions with
URL: https://financedigest.com/the-challenges-drivingdemand-forhigh-performance-infrastructurehtml

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Multiple trends in the banking industry are making a high-performance technology infrastructure critical to ensure success. Terry Erisman, Vice President of Marketing at GridGain Systems looks at the key challenges facing financial institutions as they become increasingly reliant on technology to stay competitive, and agile.

Real-time financial regulatory compliance and fraud prevention

![Terry Erisman VP Marketing GridGain](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/11-200x300-1736843408865-compressed.jpg)

Terry Erisman VP Marketing GridGain

Fears of another 2008-style financial meltdown and concerns over [privacy have created](https://www.financedigest.com/european-privacy-watchdog-creates-chatgpt-task-force.html "European privacy watchdog creates ChatGPT task force") an evolving and increasingly complex regulatory environment. To ensure compliance,financial institutions must now monitor, collect, and analyse vast amounts of data from multiple, disparate sources in real-time to calculate and [report on their regulatory compliance status](https://www.financedigest.com/diabetic-foot-ulcers-and-pressure-ulcers-market-revenue-status-and-outlook-2016-2024-detailed-in-new-research-report.html "Diabetic Foot Ulcers and Pressure Ulcers Market Revenue Status and Outlook 2016-2024 Detailed in New Research Report").

Similarly, fraud prevention requires the real-time [analysis of incoming data](https://www.financedigest.com/shock-data-logger-market-2021-outlook-current-and-future-industry-landscape-analysis-2029.html "Shock Data Logger Market 2021 Outlook, Current and Future Industry Landscape Analysis 2029") and, frequently, the ability to apply machine learning to identify unusual activity. Fraud strategies appear in every area of financial services: from the theft of [credit cards and personal](https://www.financedigest.com/questions-to-ask-when-applying-for-a-bad-credit-personal-loan.html "Questions to Ask When Applying for a Bad Credit Personal Loan") financial information, to document forging and mortgage manipulation, to fraudulent computerized banking and securities trading. Financial services [firms](https://www.financedigest.com/digital-marketing-for-finance-and-insurance-firms-is-changing-are-you-ready.html "Digital marketing for finance and insurance firms is changing — Are you ready?") can suffer financial loss and damage to their reputations from such activities.According to Juniper Research, the problem is only getting worse as [online transaction fraud](https://www.financedigest.com/three-online-fraud-trends-beauty-and-cosmetics-merchants-should-watch-out-for.html "Three Online Fraud Trends Beauty and Cosmetics Merchants Should Watch Out For") alone is expected to climb from $10.7 billion in 2015 to $25.6 billion in 2020.

The evolution of asset and [wealth management](https://www.financedigest.com/annual-survey-of-wealth-managers-2022.html "Annual Survey of Wealth Managers 2022")

Asset and wealth [management services](https://www.financedigest.com/service-lifecycle-management-applications-market-to-grow-at-a-cagr-of-6-9.html "Service Lifecycle Management Applications Market to grow at a CAGR of 6.9%") are also changing dramatically. Today’s investors typically eschew the advice of a single investment advisor and reject the idea of a [limited trading](https://www.financedigest.com/indias-carmakers-back-zero-duty-on-limited-british-imports-under-trade-deal-sources.html "India’s carmakers back zero duty on limited British imports under trade deal – sources") day.Instead, they want their investment [services providers to offer 24/7 access to trading services and an ever-widening array of real-time data](https://www.financedigest.com/meeting-the-data-challenge-in-financial-services.html "Meeting the data challenge in financial services") that they can dive into themselves. This is requiring financial firms to update their [technology capabilities and performance in order to provide](https://www.financedigest.com/inmobi-wins-gold-silver-bronze-mma-smarties-mena-awards-named-technology-provider-of-the-year-for-fourth-consecutive-year.html "InMobi Wins Gold, Silver, Bronze MMA SMARTIES MENA Awards, Named “Technology Provider of the Year” for Fourth Consecutive Year") real-time, high performance 24/7 access through a variety of new distribution channels, including online, mobile, and social. As more channels have been opened for customer interactions, transaction volumes have increased, and providing real-time [services has become more challenging](https://www.financedigest.com/financial-services-and-data-how-do-we-meet-the-challenge.html "Financial services and data – how do we meet the challenge?").

Support for bitcoin and blockchains

Banks, enterprises and [consumers continue](https://www.financedigest.com/welding-consumables-market-continue-to-be-largest-product-segment-in-consumer-market.html "Welding Consumables Market Continue to be Largest Product Segment in Consumer Market") to adopt bitcoin and other digital-ledger technologies. A 2016 [Deutsche Bank](https://www.financedigest.com/deutsche-banks-rollercoaster-ride-towards-more-stability.html "Deutsche Bank’s rollercoaster ride towards more stability") survey of 200 participants in the global financial industry found that 87 percent expect blockchain to have a major impact on the securities services market, while 75 percent expect widespread adoption over the next three to six years

Supporting blockchain’s decentralised architecture typically requiresa high performance infrastructure.When a bitcoin transaction occurs, a record of the transaction is added to the ever-growing blockchain, which must be updated in real-time. Depending on the [specific application](https://www.financedigest.com/application-specific-integrated-circuits-market-expected-to-reach-usd-33545-7-million-by-2026-tmr.html "Application Specific Integrated Circuits Market Expected To Reach USD 33,545.7 Million By 2026 – TMR"), as the size of the blockchain and the number of subscribers continue to grow, the demands on the infrastructure to maintain the real-time ledger can become extraordinary.

Spread betting is increasingly popular, especially in the UK. A spread betting platform which can accurately price wagers while providing [users with the required services and access to information from multiple channels can place tremendous demands](https://www.financedigest.com/catharanthine-market-2022-research-on-user-demand-size-applications-key-players.html "Catharanthine Market 2022 Research on User Demand, Size, Applications, Key Players:") on the computing infrastructure. For instance, spread betting bookmakers and host venues must be able to stream tremendous amounts of data into advanced statistical and mathematical models that can quickly compute event relationships and outcome probabilities in order to [set prices](https://www.financedigest.com/oil-prices-set-for-weekly-fall-on-stockpile-releases.html "Oil prices set for weekly fall on stockpile releases") in real-time. To improve the trader experience, spread betting platforms may also want to provide customers with access to real-time data services and news analysis so traders can [gain insight](https://www.financedigest.com/organic-fertilizer-market-where-should-participant-focus-to-gain-maximum-roi-exclusive-report-by-future-market-insights.html "Organic Fertilizer Market | Where Should Participant Focus To Gain Maximum ROI | Exclusive Report By Future Market Insights") into trends that impact their positions.

Financial [services companies](https://www.financedigest.com/sterilization-services-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Sterilization Services Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") are under extraordinary pressure to meet evolving customer demands, prevent fraud, and comply with increasingly complex regulations.  Whilst a variety of technologies are already in use to [address these challenges](https://www.financedigest.com/rising-to-the-challenge-addressing-the-difficulties-of-pillar-2-reporting.html "Rising to the challenge: Addressing the difficulties of pillar 2 reporting"), many such systems are limited by the performance of disk-based storage.  But overcoming these limitations is not only possible but potentially less complex, and less expensive, than perhaps believed.

Upgrading IT infrastructure to enable real-time processing can be a highly advantageous solution. By [moving data](https://www.financedigest.com/dollar-moves-off-lows-on-heels-of-inflation-data.html "Dollar moves off lows on heels of inflation data") from disk into memory for rapid processing across a distributed computing cluster, an in-memory computing platform which includes an in-memory data grid and in-memory compute grid can process huge volumes of data in real-time. Such a platform can scale simply by adding additional nodes to the cluster, enabling [firms to keep pace with the rapidly evolving](https://www.financedigest.com/evolving-ransomware-and-regulations-is-your-firm-ready.html "Evolving Ransomware and Regulations: Is your firm ready?") environment and increasing threats. In fact, inserting an in-memory computing layer can increase processing speed by 1,000 [times versus disk-based approaches and support hundreds or even millions](https://www.financedigest.com/coca-cola-hbc-flags-one-time-195-million-hit-from-russian-operations.html "Coca-Cola HBC flags one-time 5 million hit from Russian operations") of transactions per second, all with minimal integration requirements.

Critically, the technology can be deployed as an in-memory computing layer inserted between existing application and [data](https://www.financedigest.com/three-layers-of-hybrid-workforce-data-for-financial-institutions.html "Three Layers of Hybrid Workforce Data for financial institutions") layers, allowing rapid, cost-effective deployment with limited integration requirements. On premise, cloud, and [hybrid deployment options](https://www.financedigest.com/mg-motor-launches-plug-in-hybrid-option-in-mexico-as-ev-race-heats-up.html "MG Motor launches plug-in hybrid option in Mexico as EV race heats up") are all possible.

Misys, for example, provides financial services software, covering retail and [corporate banking](https://www.financedigest.com/bank-of-england-sets-out-plans-to-sell-23-billion-corporate-bond-stockpile.html "Bank of England sets out plans to sell billion corporate bond stockpile"), lending, treasury, capital markets, investment management and enterprise risk. The [company offers](https://www.financedigest.com/passendo-partners-with-leading-media-company-audienzz-to-revolutionise-its-ad-offer-in-a-portfolio-of-over-70-premium-newsletters.html "Passendo partners with leading media company, audienzz, to revolutionise its ad offer in a portfolio of over 70 premium newsletters") services that are used by 48 of the world’s 50 largest banks, and recently decided to deploy an in-memory computing platform to handle the caching of data for its new data lake-based product.  It then distributed the cached data across a distributed computing cluster for massive parallel processing. By achieving real-time processing of massive amounts of trade and transaction data, the company eliminated bottlenecks, was able to begin offering next-generation financial services to its customers, and was better able to meet its regulatory requirements.

Memory [costs have dropped roughly 30 percent per year since](https://www.financedigest.com/britains-cost-of-living-crisis-sends-sterling-to-lowest-since-mid-july.html "Britain’s cost of living crisis sends sterling to lowest since mid-July") the 1960s, and while it is still slightly more expensive than disk-based storage, it offers a tremendous increase in performance and much greater flexibility to incorporate new capabilities in the future.

The benefit?  A far superior return on investment (ROI), especially when [competitive advantage](https://www.financedigest.com/turning-the-burden-of-compliance-into-competitive-advantage.html "Turning the burden of compliance into competitive advantage") and customer experience is taken in to account.


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