ABC Bank! – Digital Lending Transformation Case Study (Enterprise Architect View)

ABC Bank – Digital Lending Transformation Case Study (Enterprise Architect View)

1. Business Context

ABC Bank wants to modernize its Retail loan digital lending platform to deliver faster, compliant, secure, and customer-friendly experiences. Current challenges:

• Legacy core banking (Finacle / BaNCS) integrations are slow and batch-driven.

• Manual KYC/AML/credit processes create delays.

• Compliance reporting to FIU-IND, RBI is reactive, not proactive.

• Legacy tech stack (EJB, PL/SQL, Oracle Forms, Proc*C) limits agility.

Strategic Goals:

• Digital-first onboarding for customers like Amit R, buying homes from builders like MGroup.

• API-driven integration with compliance and credit ecosystem.

• Cloud-native microservices, DevOps & DevSecOps adoption.

• Automated regulatory compliance reporting.

• AI/GenAI for advisory and risk insights.

• Future-proof architecture aligned with RBI, FATCA, OFAC standards.

3. Enterprise Architecture – Strategy & Design

a) Enterprise Strategy

• Move from legacy batch-driven architecture to real-time API-first microservices.

• Cloud-native deployment on Azure AKS, Istio Service Mesh, Azure API Management.

• DevOps + DevSecOps with IaC (Terraform, ARM), CI/CD (Azure DevOps), Security gates (SAST, DAST, container scanning).

• Legacy modernization:

  • EJB → Spring Boot Microservices

  • PL/SQL Stored Procs → REST APIs / Spring Data JPA

  • Proc*C Batch → Spring Batch

  • Oracle Forms → Angular Frontend

  • Automated conversion accelerators where possible.

• Security by design: Zero Trust, RBAC, Data Encryption, SIEM logging, Immutable audit trails.

b) Business–IT Alignment

• Business Objective: Speed loan approvals, improve compliance, enhance CX.

• IT Execution: Microservices + API integrations, modernized workflows, automation, AI-driven risk detection.

• KPIs: Loan approval TAT reduced from weeks → hours, regulatory penalties avoided, fraud losses reduced, NPS improved.

4. Capability Model

Core Business Capabilities

• Customer Onboarding & Identity Mgmt

• KYC/CDD/EDD

• AML/Financial Crime Detection

• Credit Risk Scoring

• Fraud Scoring

• Loan Evaluation & Underwriting

• Loan Agreement Mgmt

• Loan Disbursement

• Compliance Reporting

• Customer Advisory

Capability → Service Mapping

• Onboarding → Onboarding Microservice

• Identity → SailPoint + Azure AD Integration Service

• KYC → Fenergo Connector Service

• AML → Actimize Connector Service

• Credit Risk → Bureau API Service

• Fraud Detection → Hunter API Service

• Loan Decisioning → Decision Engine Service

• Agreement → Document Service + E-signature Service

• Disbursement → CBS Integration (Finacle/BaNCS) Service

• Compliance → Regulatory Reporting Service

• Advisory → GenAI Advisor Service

5. Security Across Lending Journey

• UI → API Gateway: TLS 1.3, OAuth2, JWT.

• Identity → IAM (Azure AD): MFA, SailPoint governance.

• Microservices → Partner APIs (Fenergo, Actimize, CIBIL, Hunter): VPN/IPSec tunnels, mTLS.

• Data: AES-256 at rest, TLS 1.3 in transit, Azure Key Vault for key rotation.

• Logs: Immutable storage (ELK + WORM).

• DevSecOps: Security scanning integrated into CI/CD.

6. RACI (Sample)

Function	Responsible	Accountable	Consulted	Informed
KYC (Fenergo)	Compliance Ops	CRO	EA, IT Security	RBI
AML (Actimize)	AML Ops	CRO	Data Ops, EA	FIU-IND
Credit Scoring	Risk Ops	CRO	EA, Bureau Partners	Customer
Fraud Scoring	Fraud Ops	CRO	EA, Experian	Audit
Loan Evaluation	Underwriting	CIO	EA	Business
Disbursement	Operations	COO	IT, EA	Builder
Reporting	Compliance Ops	CRO	EA, Legal	Regulators

7. Top 50 Enterprise Risks (Sample Highlights)

Risk ID	Name	Category	Owner	Mitigation
R1	Fenergo API Failure	Integration	EA Lead	Retry logic, Circuit Breaker, DR setup
R2	Actimize ETL Delay	Data	Data Ops Lead	Parallel processing, SLA monitoring
R3	Finacle/BaNCS Downtime	Partner/Core	CBS Lead	Active-active DR, API fallback
R4	Incorrect Credit Report	Partner	Risk Head	Dual bureau validation
R5	Fraud Score Misclassification	Application	Fraud Ops	ML retraining, explainability
R6	Regulatory Non-Compliance	Governance	CRO	Policy-as-code, audits
R7	Legacy Migration Slippage	Modernization	App Lead	Automated conversion tools
R8	DevSecOps Adoption Gaps	Process	DevOps Lead	Mandatory pipeline gates
R9	Unauthorized Access	Security	CISO	MFA, RBAC, IAM governance
R10	Customer Drop-off	Business	CX Head	Assisted journeys via chatbot

(→ Full Top 50 list provided in structured Excel-style earlier.)

2. Digital Lending Journey – End-to-End Flow

Step 1: Customer Onboarding

• Amit R applies for a home loan through mobile/web banking portal.

• Authentication: Azure AD.

• Identity lifecycle governance: SailPoint (role provisioning, access recertification).

Step 2: KYC / CDD / EDD

• Data routed to Fenergo for regulatory checks (Sanctions, PEP, FATCA, OFAC).

• Results stored in compliance repository; exceptions flagged for manual review.

• Reporting: Automated submission to RBI for KYC/CDD/EDD compliance.

Step 3: AML & Financial Crime Monitoring

• Customer & transaction data pushed to Actimize Crime Suite.

• Batch feed: CBS (Finacle/BaNCS) → SFTP → Actimize ingestion layer → ETL → AML pipeline.

• Reports: CTR, STR, NTR, CBWR generated and filed to FIU-IND.

Step 4: Credit Risk & Fraud Assessment

• Credit Score APIs: CIBIL & Experian.

• Fraud Score: Experian Hunter.

• Risk decisioning engine consolidates KYC, AML, credit & fraud scores.

Step 5: Loan Evaluation & Underwriting

• Decision Engine evaluates eligibility.

• Auto-approval if thresholds met; exception cases go to manual underwriting.

Step 6: Loan Agreement & Digital Signing

• Loan agreement digitally generated.

• DocuSign / Adobe Sign integrated for e-signature.

• Agreement stored in secure Document Management System (DMS).

Step 7: Loan Disbursement

• Integration with TCS BaNCS / Infosys Finacle CBS for fund release.

• Direct disbursement to Prestige Group (Builder) account.

Step 8: Compliance & Reporting

• Actimize reports → FIU-IND.

• KYC/CDD reports → RBI.

• Ongoing monitoring of loan performance & customer behavior.

Step 9: Advisory & Customer Engagement

• GenAI-powered Advisor for loan FAQs, repayment options, foreclosure queries.

• AI/ML models retrain periodically on loan repayment data & fraud patterns.

8. Summary – Why This Case Study Matches Enterprise Architect JD

• IT Strategy Development: Modernization roadmap (legacy → microservices, DevOps, cloud-native).

• Business–IT Alignment: Direct mapping of business goals (faster loans, compliance, CX) to IT capabilities.

• Architecture Design: Detailed capability → service → application → technology mapping.

• Technology Evaluation & Selection: Spring Boot, Angular, AKS, SailPoint, Fenergo, Actimize, GenAI.

• Governance & Compliance: Integrated regulatory reporting to FIU-IND, RBI; IAM & data governance via SailPoint & Azure.

• Stakeholder Collaboration: RACI model ensures cross-team alignment.

• Enterprise Risks: 50 detailed risks across business, tech, data, process, security, partners, governance, each with owner & mitigation.

✅ This unified end-to-end case study presents you as an Enterprise Architect who can design, govern, modernize, and transform a complex BFSI platform while ensuring compliance, modernization, and digital innovation.