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Why Financial Institutions Are Replacing Legacy Integration with Operational Data Hubs
The Financial Industry’s Real-Time Mandate In a sector where milliseconds can matter, data latency, inconsistency, and fragmentation are no longer tolerable. Banks and insurance companies operate dozens — if not hundreds — of core systems: core banking, CRM, payment gateways, risk control, regulatory reporting, customer service platforms, and more. Traditionally, these systems are integrated via point-to-point APIs, ESBs, or batch ETL jobs — methods that introduce delay, complexity, and governance risk. To stay competitive, more financial institutions are replacing these legacy patterns with a modern operational data hub (ODH) — a real-time data integration layer designed for speed, scale, and trust. Unlike traditional data pipelines, this architecture promotes a data hub model: unified, streaming, and event-driven by design. What Is an Operational Data Hub in Financial Services? An operational data hub is a centralized platform that: Captures real-time changes from core systems Transforms and routes data across applications Provides live, queryable views for analytics, dashboards, and APIs Enables observability, lineage, and auditability for compliance In finance, this means: Real-time customer 360 for relationship managers Instant synchronization between trading, risk, and settlement systems Live reporting to meet daily liquidity and credit exposure requirements Supporting regulators with timely, traceable data pipelines Common...