I glanced, and I found this handbook shallow and - in some areas - even bad advice.
E.g. If I ever see a monetary value stored in something else than integers I'm going to run away screaming (thank you Rust decimals represented as JSON floats). It's always integers unless you have a VERY good reason to do otherwise (though exported view can be in anything, even in weird bitcoded formats).
FX exchange. Resolution of FX isn't a point-in-time thing, things like buyer rate-in-time, seller rate-in-time, agreement, agreement tolerance, agreed upon resolution timestamp come in the effect.
Immutability - that's why you want to have event sourcing everywhere that touches money:
# Resolved stream
A -> B -> E
# Actual stream
A0 -> Edit(A0, A) -> B -> C -> D -> Rollback(B) -> E
Though in the end Fintech != Fintech. I worked at Fintech where money was treated like a baggage, and in other where money was a central point of everything.
show comments
lxgr
Word of advice to anyone considering the "minor-units precision" strategy for representing monetary amounts: Don't (or at least, don't use it as an interchange/API data format).
It seems like a clever idea (fast integer math, no rounding problems for addition and subtraction), but it'll bite you incredibly hard if you ever stumble upon an edge case such as working with a partner that has a different implied number of digits for a given currency. This is especially relevant for stablecoins, which often have a different number of implied decimal digits than the "fiat" currency they represent.
Also, consider representing amounts as a string type in JSON-based APIs. JSON does not specify decimal precision, so you (and all your users/vendors) will always have to make sure your parser/serializer doesn't internally lose precision by going via floating point. This can get ugly fast, and while a string seems conceptually less neat, it completely bypasses that problem. (Some will call this an anti-pattern [1], but I'd rather not fight this particular battle for ideological purity on the shoulders of my users or shareholders.)
As a programmer, what I feel when I see fintech programmers each speaking from their own different experiences and perspectives is that it makes me wonder what it really means to be good at programming.
What user xlii said about not storing monetary amounts as floats is a common IEEE 754 issue. And while it's true that financial tracking should be done through immutable logs or event-based records, I don't think every surrounding service needs to be built with event sourcing. I think it's enough to apply it only to core logic like ledgers, settlements, orders, and executions. Looking at xlii's comment, it seems like a technique that only becomes viable when the modeling is successful.
User lxgr's comment points out that it's a minor-unit issue. If JSON numbers are parsed as floats by the language or parser, precision can be lost. Usually people send values with a separate decimal places field. However, I've heard that in HFT, they don't do that because the overhead itself is too costly.
And antonymoose's comment aligns with what many books say. That's why designs like this are common in FX or API contexts. It feels like protocol design, doesn't it?
Putting it all together, everyone's right within their own domain. While I think it'd be great to have someone like xlii as my senior programmer, I also feel like I wouldn't be able to design such a complex system myself. In that sense, everyone's statements are valid, and it's interesting to see how opinions diverge depending on the domain. Is this what expertise looks like
Looking at all this, it seems like you can roughly infer where a programmer is coming from based on their experience. Sometimes programming doesn't feel like finding the right answer, but more like choosing a worldview
Watching how programmers model their domains on HN is always fascinating. Sometimes I click on their profiles and add their domain knowledge to my own personal wiki, thinking I might use it someday
wavemode
"Fintech" is extremely broad, and most of what gets called "Fintech" is really communication. Communication between firms, between traders, between systems, between ledgers, etc. There is no industry-wide "right" way to program anything, because the right way is ultimately whatever way the other party you're communicating with will understand.
If you're dealing with a party who tracks currency in cents, then tracking currency with more precision than that is going to lead to rounding disagreements. Vice versa if you deal in cents but they deal in tenths of cents. And so on for all the other advice in this document.
belmarca
Nice. The book contains a bunch of good information that could already be found elsewhere but collecting it is quite practical. I highly suggest to read Kleppmann's Designing Data-Intensive Applications. The first edition was very good, a second one came out recently.
I was CTO of a FinTech where I built the whole software stack from scratch: the lessons in the book are mostly correct. I say mostly, because as always, there is a lot of "it depends" to take into consideration for your particular project. For example, I chose to not use event-sourcing to avoid the whole state computation issue. A standard append-only audit trail can do the job.
You can't guarantee exactly-once delivery but you can construct effectively-once processing, and that is what you really want.
Store every request and response : absolutely, and not only when consuming APIs, but when collecting any information from the outside world (and, if you can, also log every intermediate transformation step within your perimeter). Content-adressed buckets + a relational table are great for this.
The text also does not mention anything about data lineage. What happens if a vendor updates some data mid-day that you absolutely need to be aware of? You need to be able to account for that, while also re-playing computations that used the old values and get the same result. It's not a particularly hard problem to solve, but it takes some thought.
benashford
I think most of this applies to software engineering generally, not just fintech.
For example the parts talking of retries, idempotency, event ordering, etc. This applies to all systems that require any degree of accuracy, even if no money is directly involved. I've seen so many systems built on the assumption that "we can always retry", but you can only retry if you fail cleanly in the first place, and if the downstream system offers the same level of idempotency that you think it does. Quite often these are not put to the test.
show comments
traceroute66
> even bad advice
That's putting it politely. Honestly, I think this "handbook" was mostly written by an LLM.
For example, in the immutability section we have this:
"Separating PII from financial data lets you honor erasure without losing the financial history you’re obliged to keep."
In a financial organisation the two go hand-in-hand for obvious KYC/AML reasons.
Keeping the financial data whilst trashing the customer names, addresses etc. instantly on-demand before the expiry of the relevant time periods is going to leave your entire organisation with a very bad day in the office if a $lawful_body comes knocking for the data to trace a crime.
People going to work in a Fintech should not be relying on a random "Handbook" written by an unknown person in an unknown jurisdiction.
People going to work in a Fintech should only ever work in accordance with their employer's internal handbooks/guidelines/etc which will have been written in conjunction with their firm's lawyers and compliance people to ensure it complies with the laws and reporting requirements in the jurisdiction(s) in which their employer operates.
show comments
danielabinav160
The idempotency keys section alone is worth the read most devs learn that lesson the hard way.
show comments
morpheuskafka
A Plaid balance check is NOT a guarantee that the ACH debit you're about to submit will go through.
I don't care if the balance is one million, before that ACH can process, every single dollar can be (a) wired out, (b) cleared out by yesterday's ACHs (bills, autopay, whatever) and checks, or (c) spent at debit/ATM.
I probably shouldn't tell you why I know that some fintechs don't address this.
koliber
Anyone know of resources like this but for capital markets? Things that would allow engineers new to trading equities, options, FX, bonds, and commodities to learn about different flows, market structure, common architectures, and other things that normally you learn from years of experience.
show comments
rTX5CMRXIfFG
I don’t work in fintech (yet) but I’ve studied finance recently and quite a lot of these pieces of advice are just intuitive when you know the business domain. Learning the “customer” of your software helps too
ricardobayes
Does anyone have more learning resources in this field? Any model implementations, pet projects, anything to get going?
cirrhosis
I have just left a fintech company after 5 years and I can say after reading this, it looks legit to me (not AI slop as someone asked). These are the same sort of lessons I learned during my time in the industry.
I would recommend anyone starting in fintech to take some time to understand accounting principles and the ledger in a bit more depth than just debits vs credits - this is likely what is most unfamiliar to programmers.
Also financial software is very data-heavy and I learned more about databases in my time working in fintech than the 15 years before that. I think going into a bit more detail about even the basics (indexes) will save a lot of headaches.
Does fintech here mean "crypto" and central bank currencies transactions?
Ajpop3y
Thank you so much for this. It came at the needed time
Ajpop3y
Thank you. It came at a much needed time.
dapperdrake
First half didn’t sound so bad.
jgalt212
> Webhooks are the most common way to receive signals from external systems, but processing them safely is not trivial
I see webhooks documented all the time, but I have yet to use them in practice, nor have my customers requested them. Is the above not true, or are they widely used in some sectors and not others?
show comments
dc_giant
Sorry have to ask these days. Is this carefully written down information from years of experience in the field or AI slop?
show comments
krever
Hey, author here. Happy to take feedback or answer questions.
P.S. I have no clue how HN works, I posted it myself yesterday and it got 6 points. ¯\_(ツ)_/¯
Anyway, glad for the reach.
I glanced, and I found this handbook shallow and - in some areas - even bad advice.
E.g. If I ever see a monetary value stored in something else than integers I'm going to run away screaming (thank you Rust decimals represented as JSON floats). It's always integers unless you have a VERY good reason to do otherwise (though exported view can be in anything, even in weird bitcoded formats).
FX exchange. Resolution of FX isn't a point-in-time thing, things like buyer rate-in-time, seller rate-in-time, agreement, agreement tolerance, agreed upon resolution timestamp come in the effect.
Immutability - that's why you want to have event sourcing everywhere that touches money:
Though in the end Fintech != Fintech. I worked at Fintech where money was treated like a baggage, and in other where money was a central point of everything.Word of advice to anyone considering the "minor-units precision" strategy for representing monetary amounts: Don't (or at least, don't use it as an interchange/API data format).
It seems like a clever idea (fast integer math, no rounding problems for addition and subtraction), but it'll bite you incredibly hard if you ever stumble upon an edge case such as working with a partner that has a different implied number of digits for a given currency. This is especially relevant for stablecoins, which often have a different number of implied decimal digits than the "fiat" currency they represent.
Also, consider representing amounts as a string type in JSON-based APIs. JSON does not specify decimal precision, so you (and all your users/vendors) will always have to make sure your parser/serializer doesn't internally lose precision by going via floating point. This can get ugly fast, and while a string seems conceptually less neat, it completely bypasses that problem. (Some will call this an anti-pattern [1], but I'd rather not fight this particular battle for ideological purity on the shoulders of my users or shareholders.)
[1] https://blog.json-everything.net/posts/numbers-are-numbers-n...
As a programmer, what I feel when I see fintech programmers each speaking from their own different experiences and perspectives is that it makes me wonder what it really means to be good at programming.
What user xlii said about not storing monetary amounts as floats is a common IEEE 754 issue. And while it's true that financial tracking should be done through immutable logs or event-based records, I don't think every surrounding service needs to be built with event sourcing. I think it's enough to apply it only to core logic like ledgers, settlements, orders, and executions. Looking at xlii's comment, it seems like a technique that only becomes viable when the modeling is successful.
User lxgr's comment points out that it's a minor-unit issue. If JSON numbers are parsed as floats by the language or parser, precision can be lost. Usually people send values with a separate decimal places field. However, I've heard that in HFT, they don't do that because the overhead itself is too costly.
And antonymoose's comment aligns with what many books say. That's why designs like this are common in FX or API contexts. It feels like protocol design, doesn't it?
Putting it all together, everyone's right within their own domain. While I think it'd be great to have someone like xlii as my senior programmer, I also feel like I wouldn't be able to design such a complex system myself. In that sense, everyone's statements are valid, and it's interesting to see how opinions diverge depending on the domain. Is this what expertise looks like
Looking at all this, it seems like you can roughly infer where a programmer is coming from based on their experience. Sometimes programming doesn't feel like finding the right answer, but more like choosing a worldview
Watching how programmers model their domains on HN is always fascinating. Sometimes I click on their profiles and add their domain knowledge to my own personal wiki, thinking I might use it someday
"Fintech" is extremely broad, and most of what gets called "Fintech" is really communication. Communication between firms, between traders, between systems, between ledgers, etc. There is no industry-wide "right" way to program anything, because the right way is ultimately whatever way the other party you're communicating with will understand.
If you're dealing with a party who tracks currency in cents, then tracking currency with more precision than that is going to lead to rounding disagreements. Vice versa if you deal in cents but they deal in tenths of cents. And so on for all the other advice in this document.
Nice. The book contains a bunch of good information that could already be found elsewhere but collecting it is quite practical. I highly suggest to read Kleppmann's Designing Data-Intensive Applications. The first edition was very good, a second one came out recently.
I was CTO of a FinTech where I built the whole software stack from scratch: the lessons in the book are mostly correct. I say mostly, because as always, there is a lot of "it depends" to take into consideration for your particular project. For example, I chose to not use event-sourcing to avoid the whole state computation issue. A standard append-only audit trail can do the job.
You can't guarantee exactly-once delivery but you can construct effectively-once processing, and that is what you really want.
Store every request and response : absolutely, and not only when consuming APIs, but when collecting any information from the outside world (and, if you can, also log every intermediate transformation step within your perimeter). Content-adressed buckets + a relational table are great for this.
The text also does not mention anything about data lineage. What happens if a vendor updates some data mid-day that you absolutely need to be aware of? You need to be able to account for that, while also re-playing computations that used the old values and get the same result. It's not a particularly hard problem to solve, but it takes some thought.
I think most of this applies to software engineering generally, not just fintech.
For example the parts talking of retries, idempotency, event ordering, etc. This applies to all systems that require any degree of accuracy, even if no money is directly involved. I've seen so many systems built on the assumption that "we can always retry", but you can only retry if you fail cleanly in the first place, and if the downstream system offers the same level of idempotency that you think it does. Quite often these are not put to the test.
> even bad advice
That's putting it politely. Honestly, I think this "handbook" was mostly written by an LLM.
For example, in the immutability section we have this:
In a financial organisation the two go hand-in-hand for obvious KYC/AML reasons.Keeping the financial data whilst trashing the customer names, addresses etc. instantly on-demand before the expiry of the relevant time periods is going to leave your entire organisation with a very bad day in the office if a $lawful_body comes knocking for the data to trace a crime.
People going to work in a Fintech should not be relying on a random "Handbook" written by an unknown person in an unknown jurisdiction.
People going to work in a Fintech should only ever work in accordance with their employer's internal handbooks/guidelines/etc which will have been written in conjunction with their firm's lawyers and compliance people to ensure it complies with the laws and reporting requirements in the jurisdiction(s) in which their employer operates.
The idempotency keys section alone is worth the read most devs learn that lesson the hard way.
A Plaid balance check is NOT a guarantee that the ACH debit you're about to submit will go through.
I don't care if the balance is one million, before that ACH can process, every single dollar can be (a) wired out, (b) cleared out by yesterday's ACHs (bills, autopay, whatever) and checks, or (c) spent at debit/ATM.
I probably shouldn't tell you why I know that some fintechs don't address this.
Anyone know of resources like this but for capital markets? Things that would allow engineers new to trading equities, options, FX, bonds, and commodities to learn about different flows, market structure, common architectures, and other things that normally you learn from years of experience.
I don’t work in fintech (yet) but I’ve studied finance recently and quite a lot of these pieces of advice are just intuitive when you know the business domain. Learning the “customer” of your software helps too
Does anyone have more learning resources in this field? Any model implementations, pet projects, anything to get going?
I have just left a fintech company after 5 years and I can say after reading this, it looks legit to me (not AI slop as someone asked). These are the same sort of lessons I learned during my time in the industry.
I would recommend anyone starting in fintech to take some time to understand accounting principles and the ledger in a bit more depth than just debits vs credits - this is likely what is most unfamiliar to programmers.
Also financial software is very data-heavy and I learned more about databases in my time working in fintech than the 15 years before that. I think going into a bit more detail about even the basics (indexes) will save a lot of headaches.
Similar style and message to https://shapeofthesystem.com/
Does fintech here mean "crypto" and central bank currencies transactions?
Thank you so much for this. It came at the needed time
Thank you. It came at a much needed time.
First half didn’t sound so bad.
> Webhooks are the most common way to receive signals from external systems, but processing them safely is not trivial
I see webhooks documented all the time, but I have yet to use them in practice, nor have my customers requested them. Is the above not true, or are they widely used in some sectors and not others?
Sorry have to ask these days. Is this carefully written down information from years of experience in the field or AI slop?
Hey, author here. Happy to take feedback or answer questions.
P.S. I have no clue how HN works, I posted it myself yesterday and it got 6 points. ¯\_(ツ)_/¯ Anyway, glad for the reach.