Enterprise OAuth2/OIDC Authorization Platform for Hundreds of Banks

Enterprise OAuth2/OIDC Authorization Platform for Hundreds of Banks

Zero-Trust Architecture for Hundreds of Banks and 10M+ Daily Users

2024 - 2026
Senior Lead Backend Developer - Platform Enablement Team
10M+
Daily Active Users
Approximate daily users across hundreds of cooperative banks
Hundreds of Bn €
Annual Payment Volume
Double-digit billions of account bookings per year across core banking and digital channels
71%
Latency Reduction
Old: 300-500ms → New: 180-220ms → GraalVM: 68-92ms
247%
Throughput Increase
Old: 150 req/s → New: 300 req/s → Native+PGO: 520 req/s

Project Gallery

Zero-trust authentication security operations center

OAuth2 Zero-Trust Platform

Zero-trust authentication security operations center

The Challenge

Building Zero-Trust Authentication Platform for Hundreds of Banks with 100% Legacy Compatibility

this major German banking IT provider runs core banking and digital channels for hundreds of banks with tens of millions of accounts, 10M+ daily users and double-digit billions of account bookings per year – plus securities and custody bookings. The challenge was to design and implement a completely new enterprise-grade authentication and authorization platform supporting Zero-Trust architecture while maintaining 100% compatibility with existing non-standard OAuth2 processes, enabling gradual modernization without disruption.

1

No existing authentication framework - greenfield project requiring architectural decisions from ground up

2

Must support hundreds of independent banks with approximately 10M+ daily active users across Germany

3

Existing OAuth2 service has extensive custom, non-standard processes requiring 100% backward compatibility

4

Zero-Trust security requirements for highly regulated banking environment (BaFin compliance)

5

No persistent data storage allowed - session and access rights management only in memory/cache

6

Extreme reliability requirements - banking systems cannot afford downtime (99.9% SLA)

7

Must provide path to gradually remove custom processes and modernize to standards-compliant OAuth2

8

Performance requirements: sub-100ms latency for 12,000+ peak tokens/second

9

Modern DevOps standards needed - team required uplift to state-of-the-art practices

The Solution

Modern OAuth2/OIDC Platform with Zero-Trust Architecture & GraalVM Native Performance

As Lead Developer and Architect, I designed and implemented the complete OAuth2/OIDC authorization framework using Spring Authorization Server (SAS) as the foundation. The architecture strictly separates inner and outer authentication flows with a modern, modular approach while providing 100% backward compatibility with legacy processes. Progressive optimization achieved 71% latency reduction (300-500ms → 68-92ms) and 247% throughput improvement through JVM tuning and GraalVM Native compilation.

1

Core Framework

Spring Authorization Server (SAS) as base, extended with custom modules for enterprise requirements and legacy compatibility layer

2

Session Management

Custom Redis-based distributed session replication with Kafka event sourcing - read-once/write-once pattern reducing Redis workload by 80% while improving consistency

3

Authentication Flows

Strict module separation: Outer OAuth2 flow via SAS + Inner authentication via Central Authentication Service + Legacy compatibility layer

4

Token Generation

External token service implementation with modern JDK 21 features, JSR-107 caches, and custom security enhancements

5

Zero-Trust

Complete Zero-Trust architecture with mTLS, certificate-based authentication, and least-privilege access

6

Smart Migration Routing

Custom Envoy filters with intelligent destination prediction based on token characteristics, banking source, and metrics - enabling zero-downtime migration

Critical Challenges

Key technical hurdles and how they were overcome

1

100% Backward Compatibility Migration

Problem

Old OAuth2 service had extensive custom, non-standard processes. New framework must provide 100% compatibility while modernizing to standards-compliant OAuth2/OIDC for future maintainability

Solution

Built comprehensive compatibility layer allowing gradual removal of custom processes over time, ensuring zero disruption during migration while providing clear path to OAuth2 standards

Migrated hundreds of banks without a single authentication failure

Impact

Seamless migration with ability to modernize incrementally to standard OAuth2 flows

2

Redis Session Replication at Massive Scale

Problem

Redis replication with user data caused excessive memory usage (45GB cluster-wide) and traffic across the hundreds-of-banks infrastructure, impacting performance and costs

Solution

Implemented custom session & persistence stack with read-once/write-once pattern, combining Redis caching with Kafka event sourcing for controlled load/save with extremely high consistent state

Impact

Achieved 80% lower Redis workload (45GB → 9GB) while maintaining high consistency and security

3

Zero-Downtime Migration Strategy

Problem

New and old services use completely different storage and handling. Sticky sessions don't work across incompatible stacks. Migration must be seamless for millions of active users across hundreds of banks

Solution

Developed custom Envoy filters with intelligent destination prediction based on token length, banking source, and custom metrics - routing users to correct stack automatically

Live migration of tens of millions of users between incompatible authentication systems with only minimal session loss overall

Impact

Practically zero lost sessions during migration (<0.001%), soft rollout without any issues

4

Extreme Performance Requirements

Problem

Authentication latency directly impacts customer experience across millions of daily banking users. Legacy: 300-500ms was too slow for modern digital banking

Solution

Multi-phase optimization: (1) JVM tuning achieved 180-220ms, (2) GraalVM Native compilation reached 68-92ms - 71% total latency reduction with 247% throughput increase

Impact

Customer-facing operations now feel instant (sub-100ms), enabling superior user experience

Business Impact

Measurable value delivered to the business

New Business Opportunities

Configuration-driven

Custom constraint-based SSO and authorization now configurable instead of code-intensive, enabling new products and complex authorization scenarios previously impossible or requiring extensive development effort

Cost Savings

€5.12M/year total

€4.92M vs. Auth0 Enterprise (€5M vendor cost avoided) + €200k infrastructure reduction through GraalVM Native optimization

Infrastructure Efficiency

71% reduction

From €280k to €80k/year hardware costs while achieving 247% better performance through Native compilation

Customer Experience

71% faster authentication

Latency reduced from 300-500ms to 68-92ms - banking operations now feel instant to 10M+ daily users

Developer Experience Revolution

Complete local development independence

Testcontainers integration testing, Spotless code quality, JDK 25, semantic versioning with automated releases & release notes, Docker Compose + local K8s overlay + Istio emulation - complete cloud-independent local development with all services mocked and runnable

Unlimited Growth Potential

No performance bottlenecks

Platform architecture eliminates traditional scaling limitations - handles peak loads effortlessly and supports exponential growth without performance degradation. Successfully tested with 30M users with zero architectural changes required.

Innovations

Groundbreaking solutions that set new standards

Hybrid Session Architecture (Redis + Kafka)

Novel combination of Redis caching with Kafka event sourcing for session management, implementing read-once/write-once pattern for optimal performance

Industry first: 80% reduction in cache workload while simultaneously improving consistency and security

Impact: Became reference architecture for all future services at this major German banking IT provider

Smart Envoy Routing for Live Migration

Custom Envoy filters with intelligent destination prediction based on token characteristics, banking source, and custom metrics - routing millions of users between incompatible stacks

Zero-downtime migration of millions of users between completely different authentication architectures

Impact: <0.001% session loss during migration - unprecedented success for banking scale with only minimal session loss overall

GraalVM Native in Mission-Critical Banking

First major German bank to deploy GraalVM Native for mission-critical authentication (0.25s startup, 520 req/s, 68-92ms latency)

93% startup time reduction enabling elastic scaling and 71% infrastructure cost savings in banking production

Impact: New internal standard at this major German banking IT provider: all services now migrating to GraalVM Native for cost/performance optimization

Compatibility-First Modernization Architecture

Architectural pattern allowing 100% backward compatibility with non-standard processes while providing incremental path to standards-compliant OAuth2/OIDC

Solved the 'legacy migration paradox' - achieving full compatibility AND modernization simultaneously

Impact: Enabled migration of hundreds of banks without disruption, with clear roadmap to gradually remove all custom processes

"The OAuth2/OIDC platform has become the foundation of our banking authentication infrastructure. The Zero-Trust architecture and modern DevOps practices raised our entire team's capabilities. The ability to maintain full legacy compatibility while modernizing was crucial for our cooperative banking network at this scale."

S
Senior Lead Backend Developer, this major German banking IT provider
Platform Enablement Backend Team for Authentication

Technologies Used

core

Java 21 Spring Boot 3.x Spring Authorization Server Spring Security GraalVM Native

persistence

Redis (Session Replication) Kafka (Event Streaming) JSR-107 Caches

infrastructure

Kubernetes Istio Service Mesh Envoy Proxy Docker

devops

GitLab CI/CD Renovate Spotless Semantic Release Conventional Commits JIB

security

OAuth2 OpenID Connect mTLS Zero-Trust Architecture BaFin Compliance

testing

JUnit 5 Testcontainers Mockito Integration Tests

performance

GraalVM Native Image Profile-Guided Optimization (PGO)

Need Enterprise OAuth2/OIDC Expertise at This Scale?

If your organization requires a custom, high-security authentication platform that can't be solved with off-the-shelf SaaS solutions, especially with legacy compatibility requirements at massive scale (millions of users, strict compliance), let's talk.

Schedule Consultation