Overview of Service – Oriented Architecture (SOA) and some suggestions for modernizing banking system in Vietnam

Abstract

The robust development in information technology, especially Core Banking has modernized widely and deeply banking system. Nowadays, banks and financial institutions have to create more attractive services than traditional services because of increase in competition. However, there are some limitation in reusing and optimization of Core Banking. These issues are complicated, expensive and highly risk. Service- Oriented Architecture (SOA) has been replaced Core Banking to solve the problems by some banks in the world. SOA is considered the best technology to enables the creations interface basis using standard protocols to improve interoperability between IT systems, reducing time in implement, operation and development of new services. The article answers the following questions: 

- What is SOA? 

- Which are the benefits and challenges for banks and financial institutions when they deploy SOA? 

- Some suggestions for modernization of banking system and payment system in Vietnam.