Eliminate financial data silos! What is an autonomous decentralized architecture using iPaaS?

Distributed business systems lead to practical constraints and data fragmentation

Having each department select and implement the most appropriate service contributes to the efficiency of specific tasks in the short term. However, from a bird's-eye view of the bank as a whole, problems arise when customer data and accounting data are not properly linked. For example, when a sales representative tries to check the latest status of a customer during a visit, they must log in to multiple systems separately, such as the SFA and loan approval system, and even financial databases provided by external vendors, to compare the information. This fragmentation of customer information hinders quick decision-making.

Furthermore, because data output from information systems is limited to a fixed format, situations requiring advanced analysis often require manual, analog work, such as extracting data from multiple reports and recalculating it using spreadsheet software. As a result, IT departments are overwhelmed with work responding to individual requests from the field, leading to the progression of so-called report factories. The structure of connecting existing systems with individual development each time a new system is introduced complicates the dependencies between systems, creating a barrier to future modifications and modernization.

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Optimizing banking operations through an autonomous decentralized architecture

To eliminate system silos within banks and utilize data across the organization, it is effective to build an autonomous decentralized architecture that flexibly connects each system. A loosely coupled architecture with iPaaS as the hub achieves data integration without relying on any specific system, achieving both logical centralization and flexibility. This means a shift from the traditional centralized structure with the accounting system at the top to one in which each system autonomously collaborates according to its role.

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Offloading mechanism to reduce the load on core systems

Financial institutions require extremely high levels of stability when it comes to core system processing, such as integration with the Zengin System and guarantee companies, and the file integration tool HULFT. To promote data utilization while maintaining these important processes, offloading methods that place data on the appropriate tier via iPaaS are gaining attention. This opens up the possibility of supplying data to peripheral SaaS and analysis platforms when needed, without placing a direct load on mission-critical system, core system.

Hybrid integration of existing assets and the latest services

Financial institutions have a mix of legacy assets that have been in operation for many years and newly introduced cloud services. The autonomous distributed architecture integrates the management of real-time API-based integration with traditional file-based integration. By automatically converting fixed-length files received from the Zengin System and other systems on the iPaaS and synchronizing them with the cloud data layer, data in older formats can be utilized within modern business processes. The ability to send only the necessary data to peripheral systems without major modifications to mission-critical system, core system offers a significant benefit in terms of return on investment.

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iPaaS promotes in-house development and ensures governance

As the number of data integration patterns increases, a standardized integration platform is essential to prevent development stagnation. Therefore, we recommend utilizing a no-code/low-code iPaaS. By configuring data integration logic using a visual interface, you can prevent it from becoming a black box that only certain personnel understand, and establish a system where the IT department can take the lead in quickly building and modifying data pipelines.

Furthermore, for a financial institution, which is a corporate organization that requires extremely high reliability, it is important to be able to visualize data flows in a centralized manner. By monitoring data flow between distributed systems, it becomes possible to efficiently operate strict access control and trail management. This allows for the construction of a platform that can flexibly respond to business changes while maintaining security standards.

Specific use cases that support the advancement of business operations

Flexible system integration creates new value in specific banking operations. In lending operations, integrating transaction history from accounting systems, financial data from accounting SaaS, and credit guarantee company screening results, and ensuring that the latest information is always available on the SFA, enables highly accurate credit management and management support. In addition, a system that automatically feeds back knowledge gained from the analysis platform to the sales field improves productivity throughout the organization.

In the wealth management field, combining deposit trends with behavioral data such as app browsing history makes it possible to propose services that meet customer needs. By offloading heavy analytical processing to the cloud, advanced recommendations can be made without compromising front-end operability.

Furthermore, this architecture is also effective in fraud detection and strengthening compliance. By comparing deposit and withdrawal data, mobile app login information, external lists, and other data in real time, it is possible to build a system that immediately detects abnormal behavior. By automating screening tasks that were previously performed manually, it is expected that detection accuracy will be improved while operational workload will be reduced.

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Conclusion: Redefine data integration platform as a strategic asset

Introducing SaaS is the first step in improving business operations, but to realize its true value, an architecture that circulates data throughout the organization is essential. Building a collaboration platform with iPaaS at its core is not just a change in system connections; it is an important investment that frees sales representatives from information gathering duties and shifts IT engineers to more creative work.

Positioning data integration platform as a strategic asset for responding to this rapidly changing era and logically integrating existing legacy assets with the latest technology will be the key to successful digital transformation in banking operations going forward.

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The person who wrote the article

Affiliation: Data Integration Consulting Department, Solution Architect

K. F

In his previous job, he worked in sales and in-house system engineering at a financial institution. After joining Saison Technology, he worked as a pre-sales representative, supporting proposals and planning services related to data integration platform, while also promoting data utilization methods in the financial field. His hobbies are watching baseball games, visiting hot springs, and watching movies.
(Affiliations are as of the time of publication)

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