Event-Driven Architecture in FinTech Using Spring Boot and Kafka

Authors: Ajay Benadict Antony Raju

DOI: https://doi.org/10.5281/zenodo.14209107

Short DOI: https://doi.org/g8rrgc

Country: USA

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Abstract: This has called for the need to have some sort of system that is scalable, pressure resistant as well as real-time capable given the growth in the financial technology sector. Therefore, the event-driven architecture (EDA) has become such systems’ essential element because they develop highly balanced and modular applications that can handle numerous transactions and data. This paper is intended to present a brief on how EDA can be employed in FinTech with accentuation on the best ways in which Spring Boot and Apache Kafka can be adopted to facilitate the development of efficient systems.
Since Spring Boot follows microservices based architecture it is very suitable to use in building event-based services. Kafka a distributed streaming platform is used for the event stream processing in a asynchronous, high throughput and fault tolerant manner. Thus, with the help of Kafka and the real-time data streaming, the FinTech applications regulate the real-time financial processes, recognize fraud and provide the clients with customized services.
This paper has articulated EDA, the concept of using Kafka as the event storage, and how Spring Boot consolidates the development of the microservices that act on these events. It also describes its application in the FinTech industry, including payment system, real time data analytics, and risk management, in which case the authors consider the applicability of EDA in terms of scalability, fault tolerance, and responsiveness.
We do this and then offer some concluding remarks about the prospects and risks of employing EDA in FinTech and the place of event-driven systems in the financial industry in the years to come.

Keywords: Event-Driven Architecture, FinTech, Spring Boot, Kafka, Microservices, Real-time Processing.

Paper Id: 231653

Published On: 2024-04-04

Published In: Volume 12, Issue 2, March-April 2024

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