How Southeast Asia’s Leading e-Wallets Saved Up to 40% in Database Costs

How Southeast Asia’s Leading e-Wallets Saved Up to 40% in Database Costs

by March 25, 2024

As Indonesia’s fintech landscape expands, the industry faces a pivotal transformation driven by digital innovation and an increasing demand for more efficient, scalable financial services — such as the database architecture solution from OceanBase.

In this rapidly evolving market, OceanBase emerges as a crucial technological ally. OceanBase offers a distributed SQL database platform that meets and exceeds scalability, performance, and cost-effectiveness requirements.

With its unique capabilities, OceanBase is setting the stage for a new chapter in digital finance, empowering businesses to navigate today’s challenges while preparing for tomorrow’s opportunities.

OceanBase: A New Era for Fintech Database Management

OceanBase, developed by Ant Group, represents a significant leap forward in database technology. It is an unlimited scalable distributed database that handles data-intensive transactional and real-time operational analytics workloads.

OceanBase distinguishes itself with its exceptional performance capabilities, evidenced by setting world records in the TPC-C benchmark test—a testament to its efficiency and scalability. Serving over 1000 global customers, OceanBase database architecture underpins all mission-critical Alipay systems, showcasing its reliability and robustness.

Before adopting OceanBase, fintech organisations in Southeast Asia faced hefty server hardware costs, with initial expenses amounting to US$730,000 and an annual increase of 20%.

For instance, the server cost would often constitute over two-thirds (70%) of the company’s total database hardware expenditure. Moreover, alternative database licensing fees would range at US$365,000, which increased by 20% annually. Such escalating costs highlighted the urgent need for a more efficient and cost-effective database solution.

Success Stories from Southeast Asia: DANA and GCash

OceanBase’s effectiveness is vividly illustrated through its collaborations with DANA in Indonesia and GCash in the Philippines. These partnerships showcase how OceanBase’s technology can transform the operational dynamics of fintech platforms, enabling them to scale effortlessly, maintain high data consistency, and achieve unprecedented levels of availability and performance.

DANA, a leading wallet provider in Indonesia, faced challenges with its initial small-scale cluster architecture, struggling to maintain high success rates and data consistency.

The deployment of OceanBase’s 3-replica architecture enabled DANA to expand seamlessly and ensure financial-grade data consistency, contributing to a remarkable improvement in performance and capacity. This strategic move supported DANA’s rapid growth and ensured zero database failures and data loss, significantly boosting business system availability.

Similarly, GCash, the Philippines’ premier e-wallet service, encountered operational costs and data management hurdles due to its expanding user base. OceanBase’s distributed architecture facilitated a 70% reduction in data storage space and a 40% cut in database resource costs for GCash.

This transformation led to a streamlined operation with 80% fewer data nodes, highlighting OceanBase’s capability to manage growth efficiently while enhancing operations and maintenance (O&M) efficiency.

Addressing Key Challenges in Fintech

The fintech industry, particularly in fast-growing emerging markets like Indonesia, grapples with myriad challenges in their growth journey. These can include inadequate performance, intensified database cost pressures, and constrained capacity for innovation.

OceanBase addresses these issues head-on, offering solutions that reduce resource and administration costs and provide stable performance to support business growth.

OceanBase’s advantages extend beyond cost savings and performance enhancements. Its high availability, financial-grade data consistency, and support for agile innovation position it as a leading choice for fintech companies aiming to stay ahead in a competitive landscape.

In addition, OceanBase’s capacity to facilitate smooth database switches and provide professional services makes it a reliable partner for businesses transitioning to more advanced database solutions.

OceanBase in Indonesia: Strategic Move for Fintech Leaders

For tech and C-level managers in the Indonesian payment and fintech industry, embracing OceanBase offers a strategic advantage. The database’s scalability, performance, and cost-effectiveness align perfectly with the needs of a market characterized by rapid growth and evolving customer expectations.

By examining the experiences of DANA and GCash, Indonesian fintech companies can gain insights into the tangible benefits of partnering with OceanBase, the only distributed database globally that has refreshed records for both TPC-C and TPC-H On-Line Transaction Processing (OLTP) benchmarks.

Adopting OceanBase signifies more than a technological upgrade; it represents a commitment to innovation, efficiency, and sustainability in the fintech sector.

With OceanBase, companies can redefine their operational capabilities, enhance customer experiences, and achieve a competitive edge in the digital finance landscape.

OceanBase in Indonesia’s Fintech Evolution

As the fintech landscape in Indonesia continues to expand and evolve, the need for robust, scalable, and efficient technological solutions becomes paramount to keep costs in line and positive growth the primary focus.

The OceanBase distributed relational database, with its proven track record and strategic advantages, offers a path forward for companies looking to navigate the complexities of digital finance.

Through partnerships like those with DANA and GCash, OceanBase demonstrates its potential to be a transformative force in the fintech industry. It enables companies to achieve operational excellence and drive innovation.

For Indonesia’s fintech sector, embracing OceanBase database architecture could be key to unlocking a new era of growth and competitiveness.

Featured image credit: Edited from Freepik