In today's digital age, fintech companies like yours are revolutionizing the financial industry. However, with this innovation comes the need for advanced technologies to support growth and scale. One such technology is EventStoreDB, an operational database sure to fundamentally change the way you think about and manage your data.
In this blog, we'll explore why EventStoreDB is a powerful tool for your fintech company and how it can help you succeed.
What is EventStoreDB?
EventStoreDB is an open-source operational database that has emerged from the event sourcing design pattern. It's part of a new category of database that uses the state-transition data model. Natively focused on storing events as an immutable sequence, state-transition databases like EventStoreDB keep the order and business context of any state changes. Whilst events in the log cannot be changed, their effects can be altered by later events.
To demonstrate how this works in practice, imagine an “InvoiceIssued” event is appended to the log one day, only the address the invoice was issued to was incorrect. Rather than overwriting your data, this will happen in your state-transition database:
- An “InvoiceVoided” event will be added, to show the original invoice was incorrect
- Then a new “InvoiceIssued” event will occur with the correct address
For each event, the dates and times will also be stored. You can even store who made any changes to your data (e.g. customer or agent), allowing you to go back in time to understand what occurred. Let’s go into how you will benefit by capturing your data at origin like this.
Keep the story behind your data
In the scenario above, traditional databases would intentionally lose the meaningful story behind your data. That’s because traditional databases only store the current state; you would be able to see the new address, but not what it was before or why it changed.
Especially in a data-driven industry like Fintech, why your data changed is as important as what changed. With this information stored in EventStoreDB, you can:
- Time travel through your data: move through your event streams in any direction for superior analysis and forecasting
- Simplify root cause analysis: trace events back to their roots, helping you to identify bugs or other issues faster
- Gain business intelligence: keep business context for deeper insights for your data team
- Improve data integrity and auditability: you’ll have accurate, complete and secure data that can be easily audited
A database for future use cases
EventStoreDB natively supports the real-time streaming of data, unlike traditional databases that weren’t built to handle the volume of live data businesses today require. In turn, you can make quick decisions based on up-to-date information.
Additionally, EventStoreDB can be integrated with other real-time technologies like Apache Kafka, enabling real-time insights across your company. Learn more about how EventStoreDB and Kafka can work together here.
Find out more about the power of state-transition
Our webinar, Streaming Events? You Should Be Storing Them is available for you to watch on demand. After watching, you’ll know:
- More about the state-transition data model
- Why it’s important to store events - not just stream them
- Examples of use cases in the Fintech industry