Advanced Fintech Delivers Real-time Transactions Over SD-WAN

Does your company conduct the majority of its financial transactions over the Internet? Has your company bought any cryptocurrency in the past year? A "yes" answer to one or both of these questions might not be as unusual as you might think. Many digital currencies hit all-time highs a few months ago, generating widespread interest in blockchain technology. A survey by Finder even found that 26 million Americans owned crypto holdings as of January 2018.

While relatively small, this early adopter portion of digital commerce is concentrated in an influential demographic – technologists – and is expected to grow in the coming years. More importantly, digital commerce's positive outlook is representative of a larger uptick in the innovative fintech sector. This all digital financial approach is changing how consumers and businesses interact with their financial institutions.

Today's fintech story is all about increased convenience for businesses and their customers. But such ease of use comes at a price – at least to banks, credit unions and the startups trying to enter their space – in the form of greater bandwidth and reliability demands placed on corporate WANs. Bandwidth and quality of service need to scale in tandem with the rapid uptake of the new fintech services.

Blockchain gets a lot of fintech future press, and it is certainly may influence how key business apps like ERP and CRM might work in the future, but it's a small drop in the fintech pond. Consider, for comparison's sake, the meteoric rise and vast scale of the billions of USD using P2P payments networks and app-only banks.

P2P payments

Zelle, the preferred P2P payments platform for more than 30 U.S. banks, was signing up more than 100,000 new users daily in early 2018 and could reach a total of 27.4 million individuals by the end of the year, according to eMarketer. Total transaction volume from P2P payments is expected to surge nearly 300% from roughly $122 billion in 2017 to $340.9 billion in 2022.

That means tens of thousands of transactions per second even for providers much smaller than Zelle, the current leader. Failsafe Software-Defined WANs (SD-WANs) are essential in delivering the predictable performance and aggregated bandwidth necessary for reliably processing such large transaction volumes. Whether deployed as an overlay on hybrid MPLS plus Internet,  or over Internet-only WANs, a failsafe SD-WAN finds the best path for TCP and real-time apps regardless of the underlying transport.

App-only banks

A favorable regulatory environment in the European Union has fueled the recent rise of numerous app-only banks, i.e. institutions with no physical branches but most or all of the traditional services – checking accounts, ATM cards, etc. – one might expect from a conventional bank.  Typical customers of these banks are younger and wealthier than the general populations of their countries, indicating significant opportunities for stealing profitable market share.

Shifting the entire banking experience into an app can provide unique advantages over the aging infrastructure of smaller conventional banks. However, everything hinges on having an agile, responsive network with sufficient bandwidth to handle a wide variety of requests. An SD-WAN solution offers fintech a perfect fit since it permits streamlined centralized management and secure connections to multiple cloud services.

Is your network fintech-ready? Talari Networks stands ready to help with our unsurpassed failsafe SD-WAN technology. Try a demo today and check out the free eBook below.

Categories: Business Agility, Business Continuity

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