DevOps is making its impact on almost every software-powered company these days. Companies in the finance domain, however, have been perhaps the slowest to embrace DevOps because of concerns regarding governance, security, compliance and regulatory regulations. But it is safe to say that they are currently leading the digital innovation in this era of cloud-native technology.
Why DevOps for the Finance Industry?
Higher customer engagement and continuous transactions make the finance industry one of the busiest and naturally requires uninterrupted infrastructure. DevOps implementation helps companies develop fast, fail fast and learn fast so they can fulfill customer expectations and deliver features faster to market than their competitors. Technology in the finance sector has not evolved much, as many companies have assumed it is too risky to embrace DevOps because of the amount of legacy code and old methodologies still in practice. As a result, digital innovation has lagged.
Challenges of Implementing DevOps in Finance
Unlike other industries, regulated industries imply several challenges:
- Strong restrictions on secured networks.
- Fine-grained audit trails.
- Strong ACLs models.
- Full lifecycle governance.
- Integration with third parties.
Security and compliance are top concerns in financial companies, and DevOps practices are, in fact, viewed as risk factors to security. Plus, the increased frequency of software releases in DevOps is seen as a threat to governance and regulatory controls.
Is the Needle Moving Toward DevOps?
According to the “2020 State of Database DevOps report“ by Redgate, financial services organizations report the highest levels of database DevOps adoption this year, with proportionally higher rates than any other sector. That shows financial sector maturity in terms of digital innovation.Â
Image source credit: Redgate
Case Studies of Financial Companies and Their DevOps Journey
Barclays DevOps Adoption
In 2015, Barclays announced it was adopting DevOps for its digital transformation journey. Barclays processes payments that equate to around 30% of the UK’s gross domestic product. The developers’ morale and quality of code increased because of DevOps and the leadership team at Barclays credited DevOps with significantly reducing the complexity of its codes, which has allowed the company to reduce delivery risk and ultimately, improve the quality of services.
DevOps the Lunar Way
Lunar Way’s journey shows you don’t have to be big to use Kubernetes. The company started its cloud-native DevOps journey by splitting its massive monolith application into smaller microservices. To spin up these microservices, Lunar Way used Ansible, Terraform and Jenkins and to deploy these microservices as a whole unit.Â
Then Lunar Way started to experience scaling issues with microservices and didn’t experience any of the microservices benefits.Â
The company started looking for ways to move past this complexity by shifting its focus from machine-oriented to application-oriented architecture. It chose Kubernetes as the abstraction layer along with AWS, not worrying about where the containers are running, and this is how it was able to manage and unlock the velocity of microservices. Lunar Way also chose Kubernetes from a security perspective and to specify how the applications should run. Now the company runs around 80+ microservices in production with the help of Kubernetes. Watch and learn how Lunar Way did it: “Two years in production with Kubernetes.”
Italy’s Biggest Bank Embraces DevOps
A conventional bank running its real business on such a young technology? No way, are you kidding me? Nope, I am not kidding.Â
Italy’s banking group, Intesa Sanpaolo, has made this transition. Banks still run their ATM networks on 30-year-old mainframe technology, so embracing the hottest trend and tech is nearly unbelievable.Â
Even though ING, the banking and financial corporation, changed the way the banks were seen by upgrading itself with Kubernetes and DevOps practices very early in the game, there was still a stigma attached to adopting Kubernetes in highly regulated and controlled environments including health care and financial services. The bank’s engineering team came up with an initiative strategy in 2018 to throw away the old way of thinking and started embracing microservices, container architecture and migration from monolithic to multi-tier applications. Today, the bank runs more than 3,000 applications. Of those, more than 120 are now running in production using the new microservices architecture, including two of the 10 most business-critical for the bank.Â
HSBC Going the DevOps Way
HSBC is changing the way typical banking works with cloud-native technology and DevOps, as an early user of Google’s Cloud Services Platform to provide core banking services to its business customers.Â
HSBC plans to build its all-new business banking service to run on a Kubernetes-managed container infrastructure using Google’s toolset. HSBC also has excellent partnerships with AWS and Microsoft, favoring the multi-cloud strategy. The company’s engineering team believes that moving to a container model under the umbrella of Kubernetes is significant because it means the environment is similar across different clouds. HSBC also hired people from outside of the banking sector because it wanted to change its culture from within. HSBC is said to have invested $10 million so far in its DevOps initiative.
Capital One’s Agile to DevOps Journey
Capital One’s Agile journey started in late 2011, with just two teams, which expanded slowly as more teams were trained in Agile development. The developers at Capital One were following the Scaled Agile Framework (SAFe). Initially, since the teams were new to the automation methodologies, integration testing, security testing, unit and performance testing were all done outside of development sprints by separate test teams. Later, once they understood how important it is to have a collaborative culture, they integrated testing into the dedicated DevOps teams and automated it well. Then slowly, they moved all testing into development sprints, adopting a culture of DevOps and uniformity and wiring integration, security and performance testing into a continuous delivery pipeline. As of 2016, the company had more than 700 Agile teams following continuous delivery.
DevOps at Bank of America
Bank of America is one of the world’s biggest financial institutions following DevOps practices, and its digital enterprise operations support nearly 4,300 retail financial centers and approximately 16,600 ATMs worldwide. The award-winning digital bank has nearly 38 million active users and approximately 29 million mobile users.
Automating Security and Compliance
As DevOps continues to evolve and become mainstream, it will continue to be of interest for many senior managers across financial services. The above case studies show they are already making DevOps a priority. But security and compliance remain barriers slowing the innovation in the financial companies.Â
Organizations should start small and keep security high priority, first using continuous integration and then adding continuous delivery and deployment using the available tools in the market. Over time, the more a company automates, the higher return on investment it can achieve.
Automating security permissions and controls will help financial companies remove some of their most common software barriers and get their releases out quicker than before, while still maintaining the necessary governance and compliance.Â
Take a Step Forward
Financial services companies need complex and rigorous software development processes to meet intense corporate and regulatory requirements. Yet, they are expected to release software faster than ever to meet expectations and beat the competition. By starting small and keeping security and compliance in mind, DevOps in finance can be achieved with great success.
