Application Of Spring Boot Microservice Architecture for Scaling Banking Applications

Abstract

This paper discusses the use of a microservice architecture with Spring Boot and Spring Cloud for scaling banking applications. It aims to identify the constraints of conventional monolithic banking platforms and then design architectural solutions with Spring Boot that offer modularity, separate scaling capabilities, and ease of service testing. The motivation for such a study lies in explaining how transaction volumes are growing very fast in the global payments industry and further increases are forecasted through instant transfers, together with highly stringent regulatory requirements under PSD2, GDPR, and Basel III Besides this, downtime in banking systems is highly costly-with the possibility of running into several thousand dollars per minute. The novelty of the research lies in the comprehensive combination of five key Spring Cloud components—Service Discovery, API Gateway, Config Server, Circuit Breaker and Observability—with the Database per Service pattern, the saga pattern and two‑phase commit, CQRS and Event Sourcing; this approach ensures high fault tolerance, regulatory compliance and predictable horizontal scaling under peak loads. The main conclusions indicate that the proposed microservice framework reduces downtime to industry-minimum levels, simplifies adaptation to changing regulatory requirements, guarantees data integrity and flexibility, and that built-in security mechanisms and Zero-Trust models secure personal and critical operational data. This article will be helpful to IT architects and developers in banking organizations and fintech companies who are engaged in designing and implementing scalable, fault-tolerant microservice systems.