Oracle FLEXCUBE: The Shift in Core Architecture
The recent architectural changes in Oracle FLEXCUBE 14.6 have had me thinking, about whether the decision by Oracle to break down its monolithic Core Banking Product ‘FLEXCUBE’ into multiple applications was going to be good for the banking industry, or simply good for Oracle.
Considering that most of the core functionalities stay the same in the newer version, could this change in the core architecture be a marketing strategy (think about Apple Inc. selling their chargers and headphones independently), OR is Oracle really focusing on improving their engineering methodology by adopting a microservices architecture? This change would allow for easy adoption of modern technology, wherein services are independent of each other. In addition, they could develop sector-specific solutions within the fintech industry, allowing them to further extend their reach to budding players in the game.
I am inclined towards thinking the latter. Understanding your client’s requirements and offering them lightweight solutions from the start allows them to train and test your product, thus supporting them in their journey to implement the broader Oracle banking application suite in a progressive manner.
The prior versions of Oracle FLEXCUBE were difficult to manage with all the modules compacted in one application. The recent development in the product highlights a functional decomposition of the core modules thereby creating new product lines that could be marketed as independent applications. These applications at the same time are engineered to seamlessly work together as one core banking solution. This is a smart banking solution and business strategy.
This has opened doors for Oracle to develop and market its product not only to large financial institutions but also agencies like forex exchanges, brokerage firms, and personal financing institutions that have long aspired to become the banks of the future.
As a FLEXCUBE consultant and a core banking analyst, having serviced this product for over a decade and constantly trying to understand the Oracle ‘mindset’, today, I am confident that Oracle Banking Suite would remain to be a global leader in the fintech industry. Their decision is good both for financial institutions as well as for Oracle.