Matera, maker of instant payments, QR code and digital ledger technology, announced the launch of Digital Twin.
Digital Twin is described as a “one-of-a-kind cloud-native software that sits on top of a financial institution’s core banking platform to enable real-time transaction authorizations and balance updates 24X7 for DDAs and other financial accounts.”
For financial institutions with on-prem technology, Digital Twin also offers “a simple, low-risk path to the cloud.” This high-performance solution sits “on top of the existing core banking platform to deliver streamlined digital experiences with unlimited ability to scale while keeping operational costs low.”
Designed to help banks and credit unions accelerate digital transformation, Digital Twin supports growing transaction volumes and unifies experiences on digital channels. In preparation for roll out to the U.S. market, Digital Twin has “been thoroughly tested by Avanade and Microsoft, with the results detailed in a new whitepaper, Matera Digital Twin.”
Carlos Netto, Co-Founder and CEO of Matera, said:
“Core banking solutions were not built for digital transactions and instant payments, yet replacing them is not realistic – it can take years to accomplish, is prohibitively expensive and incredibly risky. But banks must do something to keep pace in a digital world. It is no longer acceptable for innovation to be hamstrung due to a legacy Core. With Digital Twin, banks can move forward. Digital Twin can handle the volume, ensure continuous uptime and simplify the shift to the cloud. It is the ideal solution for modernizing financial institutions in the United States – one that has been proven through our test with Avanade and Microsoft.”
Multiple studies reveal that banks can’t deliver real-time information, and they are spending outsized budgets on technology to try “to keep up with digital transactions. As real-time transactions increase, this problem is only going to get worse. ACI predicts real-time transactions will be 5X higher in 2026 than they are today.”
Further complicating matters, given all of the merger and acquisition activity “taking place in the banking sector, there is still no easy way to integrate accounts.” Digital Twin solves this issue by enabling the DDAs from multiple Cores “to be replicated on one secure platform.”
Digital Twin can also run on any cloud or database provider; and “not just one but multiple, different providers at the same time.” This flexibility creates built-in redundancy “for financial institutions.”
Unlike other “stand-in” solutions that just back up “a bank’s Core, Digital Twin is doing the work – the transaction authorizations and balance updates. Ultimately, Digital Twin is the single source of truth 24X7.”
To test Digital Twin’s capabilities, Matera partnered “with Avanade and Microsoft to process digital transactions on 145 million test accounts, measuring throughput.” The Digital Twin software was deployed “using Avanade’s expertise in a Microsoft Azure cloud environment.”
The 145 million test DDA accounts were “loaded onto Matera’s Digital Twin to assess how many transactions could be processed on these accounts.”
Load tests were performed on a single low cost instance “to analyze application and cloud behavior as well as overall capacity.” In the subsequent test, Digital Twin was able to process over 12,000 transactions per second “across these 145 million accounts and over 3,400 transactions per second on a single account.”
Fabio Hasegawa, President of Avanade Brazil, said:
“Matera’s Digital Twin solution, combined with the technical leadership of Microsoft, accelerates our ability to offer valuable solutions to financial institutions. Digital Twin not only increases capacity and ensures availability to process digital transactions, but it provides a simple path to the cloud. Financial institutions can reliably accelerate their path to the cloud without replacing their legacy Core in the short term.”