Bank Migrates IT Architecture to the Cloud and Enhances Pix Services

Migrating from an on-premises infrastructure to the cloud is a crucial step for financial institutions seeking to enhance scalability and agility. On-premises environments, where servers and IT resources are physically located within the company’s facilities, present various limitations, such as the need to manually provision new servers, perform complex configurations, and ensure constant maintenance of the infrastructure, resulting in slow and inefficient processes.

These constraints became evident for one of Brazil’s leading banking institutions concerning the instant payment system (Pix). The platform, which requires high processing capacity and rapid response times, faced challenges in the on-premises environment. Architectural adjustments and capacity expansion could take up to 90 days, which did not meet the demands of a dynamic and rapidly evolving market.

In this context, the institution needed to ensure the efficiency of its services and compliance with the SLAs established by the Central Bank (Bacen). The solution, developed by act digital, involved migrating the infrastructure to the cloud. Since the transition, the bank has improved its adaptability and can now make architectural adjustments in just one day.

Client: Financial and Technological Pioneering in the Banking Sector

Founded in 1940, the bank has stood out for its innovative approach to financial services. The institution that engaged act digital is currently one of the largest banking groups in Brazil.

Over more than 80 years of history, it has been a pioneer in incorporating new technologies into its processes. In the 1980s, it launched its instant operations system with real-time transactions (via magnetic cards). At the same time, it invested in Brazil’s first private satellite data communication network, established home banking services, and created an automated customer service system for balance inquiries.

The bank was the first in Brazil to offer internet banking to its clients in the 1990s. By that time, all of the institution’s branches and ATMs were already interconnected online.

Challenge: Low Scalability of IT Infrastructure

The bank faced challenges with its IT infrastructure, particularly concerning the instant payment platform (Pix). Operating in an on-premises environment—using servers and IT resources physically installed at the company’s facilities—the institution encountered limitations in scalability and agility. This compromised its ability to meet market and customer demands.

When production gaps occurred, the time required to make architectural adjustments and expand capacity could extend up to 90 days. This delay hindered the bank’s ability to adapt to demand fluctuations and implement new payment functionalities.

Pix, a recent and significant innovation in Brazil’s financial system, required infrastructure capable of handling high transaction loads and ensuring rapid response times. However, the bank’s on-premises environment could not keep up with these requirements. The need to provision new servers physically, perform manual configurations, and ensure constant maintenance resulted in a slow and inefficient process.

The institution needed to ensure its services met the SLAs set by the Central Bank (Bacen), but the limitations of the existing infrastructure made it difficult to consistently and efficiently meet these standards.

One of Bacen’s rules concerns the service availability index for Pix, which indicates the degree of readiness of the necessary infrastructure to serve end-users, requiring a minimum of 99.5%. The institution was very close to this parameter, reaching 99.6%, but could improve this performance to achieve a higher level.

Solution: Migrating Pix from On-Premises to the Cloud

To address the scalability and efficiency challenges of the instant payment platform Pix, one of Brazil’s major banking institutions decided to migrate its infrastructure from an on-premises environment to the cloud. This solution aimed to expand processing capacity, increase scalability, and improve time to market, ensuring that Pix services met the SLAs established by the Central Bank (Bacen).

The migration involved the Front, Back, and Structural journeys that make up the Pix process, covering critical functionalities such as Pix Statement, Management Site, Integrated Products, Limit Management, Payments, Payment Transactions, and Key Generation.

Methodologies

To execute the migration efficiently, the solution was implemented in phases, allowing coexistence between on-premises and cloud environments during the transition period. This gradual approach ensured secure data replication and minimized service disruptions. Here are the project execution steps:

- Planning and Analysis: Identifying needs and mapping processes to be migrated.

- Gradual Migration: Phased implementation, allowing coexistence of on-premises and cloud environments.

- Data Replication: Adopting criteria for secure data copying.

- Validation and Testing: Verifications to ensure the migration meets performance and security requirements.

- Monitoring and Optimization: Continuous monitoring for adjustments and post-migration improvements.

Technologies Used

The migration to the cloud employed advanced technologies to ensure robust and secure performance. The choice of Azure Cloud as the primary solution provided the flexibility and scalability needed for Pix services.

- Azure (using DBCosmos): For cloud data storage and management, offering high availability and scalability.

- Java and Spring Boot: Languages and frameworks used to develop high-performance applications.

- .NET Framework: Platform used to build and run a wide range of applications.

- Copilot: Tool for process automation and increased development efficiency.

- Automated Testing: Use of Selenium, Appium, and Cucumber to ensure the quality and reliability of implemented solutions.

Results: Increased Efficiency, Availability, and Scalability

The migration of Pix services from an on-premises environment to the cloud brought significant results for the banking institution, both in terms of business benefits and technical improvements.

- High Availability: Service effectiveness increased from 99.6% to 99.9%, surpassing Bacen’s minimum target of 99.5% and approaching total availability (100%). This index ensures Pix services are always accessible to end-users, reducing the risk of interruptions and increasing system reliability.

- Cost Control and Effective Management: The migration to the cloud allowed for more rigorous control of operational costs and more effective transaction management. System stability was enhanced, leading to fewer production incidents.

- Technological Advancement: With the new cloud architecture, the institution actively participates in technological advancements, such as installment payments via Pix, all implemented within this modern and scalable context.

- Provisioning Agility: The migration reduced the time required for changes in environment provisioning architecture. Previously, these changes could take up to 90 days; now, they are completed in just 24 hours.

- Increased Scalability: The cloud environment offers superior scalability, allowing the bank to adjust processing capacity to meet demand. This eliminates production gaps and ensures services can scale as needed.

- Secure Deployment Pipeline: The adoption of security and quality gates in the deployment pipeline ensures a higher level of reliability in deliveries. These security gates are specific checkpoints in the software development and installation process.

How We Can Help Your Company

Our expertise in innovation, agility, and technological mastery ensures a secure and efficient digital migration for financial institutions. We facilitate the transition from on-premises systems to the cloud, providing enhanced operational efficiency, cost reduction, and data protection.

We develop comprehensive solutions, from conception to implementation, tailoring operational models to each client’s specific needs and ensuring integrity and security at every step of the process. We utilize cutting-edge technologies in platform development, legacy system modernization, data security, and operations, as well as application programming interfaces (APIs) and applications.

If your company needs to gain efficiency and scalability, migrating from on-premises technologies to the cloud can facilitate this journey. Speak with our specialists.