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Leap in Retail Banking Streamlining Loan Application Processes through API-Led Connectivity

Introduction

LEAP, an innovative Retail Loan Application, revolutionizes the loan processing system for a leading financial institution. To ensure efficient and seamless functionality, LEAP integrates multiple systems such as a Web Application, Oracle Database, Salesforce, and various third-party APIs, including CIBIL bureau and Equifax. This case study examines how API-led connectivity optimizes the loan application process, enhancing user experience, risk assessment, and decision-making while meeting stringent time constraints.

Challenges

  • Integration complexity involving diverse systems and databases.
  • Ensuring real-time data processing within a 10-second response time limit for the web application.
  • Coordinating data retrieval from multiple sources such as Oracle Database, Salesforce, and third-party APIs.
  • Establishing seamless communication between different modules like Remark, Deviation, Risk Console, and more, while ensuring data security and integrity.

Solution

  • API-led connectivity serves as the linchpin for LEAP's diverse functionality. Leveraging iPaaS, the integration streamlines communication between the web application and various back-end systems, allowing for rapid data exchange and processing.
  • Bank had most of its business logic written in Oracle as stored procedures, making it difficult to maintain and manage. For any new enhancement, they were required to perform a lot of regression.

Architecture overview

API-led connectivity facilitates seamless integration between the Web Application, Oracle Database, Salesforce, and third-party APIs.
iPaaS’ ESB (Enterprise Service Bus) acts as the communication bridge, orchestrating data flow between different modules within LEAP.
API-led connectivity enables secure and efficient communication between diverse systems, ensuring data consistency and accuracy.
iPaaS’ robust error handling mechanisms guarantee uninterrupted service and data integrity, even during peak processing times.

Key functionality modules

Remark Module

Allows users to input remarks during file review and appraisal.

Deviations Module

Facilitates tracking of deviations based on predefined norms.

Risk Console Module

Highlights risk assessment results for credit appraisers.

Customer Loan Relation Module

Enables efficient management of customer data and relationships within the application.

CIBIL Integration

Facilitates seamless capture and analysis of customer creditworthiness.

Double Checkers Dashboard & Approver Dashboard

Provide a comprehensive overview of the loan processing status for respective stakeholders.

High Level Architecture

Business impact

  • Enhanced user experience through seamless integration and improved data accessibility.
  • Accelerated loan processing and decision-making through efficient data retrieval and analysis.
  • Improved risk assessment through comprehensive data aggregation from various sources.
  • Streamlined communication between different stakeholders, ensuring faster approvals and reduced turnaround time.
  • Scalable architecture facilitating future enhancements and integrations.

Conclusions

The successful implementation of API-led connectivity in LEAP underscores the importance of robust and scalable integration solutions in modern banking applications. By seamlessly integrating various systems and modules, LEAP optimizes loan processing, ensures data accuracy, and enhances customer experience, setting new standards for efficiency and reliability in the retail loan application process.