At a glance
The Pricing Engine (PE) is a cloud-native microservice with unmatched flexibility, rapid product development, and performance.
Solution category
Integration
Geography
EMEA
Built by
Nova Services
The challenge
Banks are looking for a solution to:
- Supercharge creative or complex product innovations, like dynamic pricing or family packages.
- Decouple pricing as a step forward in a core banking system replacement.
- Scale up a decoupled, microservice architecture core banking ecosystem to support the complex products of a universal bank.
- Move away from legacy hardware or software platforms towards a cloud-native environment, without a surprising cloud bill at the end of the day.
- Help with performance and availability issues, ranging from end-of-cycle calculations to instant payments.
The solution
The Pricing Engine can complement Vault Core when:
- A smart contract determines that a fee should be applied and the fee calculation uses parameter values that can be set by the Pricing Engine.
- Vault Core receives a fee posting calculated by the Pricing Engine as the result of an external trigger.
Nova Services’ Pricing Engine
Benefits
Short time to market
Decoupling pricing from the core reduces complexity of changes to products and prices. Nova Services’ flexible approach to data structures removes the need for development, even in the case of previously non-existent fields.
Cloud-native
Utilising cloud-native technologies allows banks to build upon cloud provider supported managed services. They also gain the high availability and scalability of the cloud.
High performance
Nova Services’ best-in-class response times enable pricing for instant payments. The Pricing Engine can calculate periodic fees in a few minutes for millions of accounts.
Core modernisation
Decoupling pricing from the core enables banks to realise the benefits of decoupled microservices sooner. It enables business to create new products with different prices with a shorter time-to-market. Moreover, it reduces the risk, complexity and cost of changes raising the likelihood of success.
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How the solution works
How the solution works
The Pricing Engine sends updates to Vault Core’s parameters, which are then used in smart contracts to drive the values that are posted.
The Pricing Engine can update parameters based on external triggers, as well as data it receives in advance from outside (for example, customer attribute change, or account transaction details). It can even aggregate data in advance to use in its formulas, such as the number of times withdrawals have been made from the account this month, or the number of times withdrawals have been made this month across linked family accounts.
In a multi-core environment there are advantages to centralising pricing management. When fees and rewards are based on aggregate balances from accounts or transactional behaviour in multiple cores, a centralised service could be used to maintain enterprise-wide customer behaviour data to calculate the correct results for each account. Decoupling pricing management embedded within a legacy core reduces complexity when migrating to Vault Core and facilitates greater flexibility when changes are required in the future.
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Why the partnership?
Thought Machine and Nova Services share the vision for cloud-native, microservice-based core banking. We believe core banking should be decoupled to reduce change complexity and speed up time to market. Nova Services can reduce smart contract complexity in Vault Core for more complex pricing use cases.
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