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Financial Services Firms Aim for Network Modernization in 2022

The Wall Street Journal

Financial services companies are looking to strengthen their technology plumbing in 2022 to improve current product offerings and launch new ones. This involves modernizing networks and tapping emerging technologies like edge computing and decentralized infrastructure, also known as Web3, technology leaders told the CIO Journal.

Ally Financial Inc. said it is moving to route network traffic via software, allowing it to configure cloud and data center components remotely.

Traditionally, network activity was designed to flow through physical infrastructure. Apart from being inefficient, the legacy process introduces security vulnerabilities, said Sathish Muthukrishnan, chief information, data and digital officer at the consumer bank and auto lender.

“We want to get rid of all the physical stuff and have software-defined networks that have the ability to understand the traffic that is coming in, is aware of all the different applications that have to process the traffic and will intelligently route it wherever it needs to go,” with security protocols embedded, said Mr. Muthukrishnan.

Ally Financial aims to have all of its applications running on the cloud by 2025, the company said.