CASE STUDY

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 Important Instructions:

• Please read the below case carefully and answer all the questions

• Please refer to the CS Case Study Handout for understanding the case
better
• Upload your answers in PDF document on the link provided in the email

• You are allowed to make a single submission individually

• Save your file using the following naming convention:

Full name_Name of the College_<Name of the case study (Quant/CS)>

• The deadline for the submission is 26th February, 2022

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 Digital Financial services

Digital financial services (DFS) can expand the delivery of basic financial
services through innovative technologies like mobile-phone-enabled
solutions, electronic money models and digital payment platforms
• Digital store front offering
• Loans
• Savings
• Credit line
• Others
• Banking-as-a-Service
• Onboarding partners with ease
• Seamless access for customers

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 Traditional Bank vs Digital Financing

http://en.finance.sia-partners.com/20170326/retail-banking-digital-world
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 Time To market - Disruption

Business Asks –
• Launch in 6 months and ability to build new offerings with ease while loan
is the first offering
• Loan processed in less than 2 minutes with a concurrency of 10 of
thousands processed per minute
Workshop Intent :- Define an Architecture that will offer loan to mainstream retail
consumers through instore financing and co-branding
Buy vs build
Buy list of items
• Commodity tools & open source components
• Products that aid time to market

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 Approach Overview

Customer
Our business will serve loans to mainstream retail consumers
Channels:
Our customers will have
Product access to our products
We will offer differentiated product features and will support multiple co-brands through the following
channels:

EMI Fraud Co-branded • Retail

Loans Prevention loans
• Point of Sale
In-store financing Integrate data to Design API
of product drive predicative gateway to
purchases scoring and risk accommodate
ratings multiple partners

To build our Loans business we will:

• Establish partnership to drive customer acquisition
• Keep Total Cost of Operations under control and minimal

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 Architecture

To launch a compliant Loans business, we will add new services to our existing architecture

Loan Decisioning - Buy Loan Processing - build Fraud Prevention - Buy

YYY Real-time key risk analytics ZZZ is the Risk scoring and fraud
and credit decisions prevention capabilities utilizing
Clearing machine learning
Customer Customer
Key Functionality: Onboarding and
Management Key Functionality:
Settlement

• Data integration
• Real-time risk scoring
• Business intelligence and
analytics Collections Data Analytics Campaigns • Account opening verification
checks
• Behavioral and predictive
scoring • Reduce false declines
XXX is a core banking platform and system of record. It is a regulatory •
• Risk rating Machine learning and artificial
compliant, feature rich and scalable product. intelligence insights
• Collection strategies

Firmwide Integration
• Compliance and anti-money laundering • Payment Processing • Books and Records

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 Architecture Principles

1. Secure customer data

2. Build loosely-coupled systems

3. Design for 24 X 7 Availability (Resilient System – not fail proof)

4. Services for a defined purpose (data domain Models)

5. Highly scalable with high Velocity, Volume and Variety

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Loan Processing Flow

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 Problem Statement

• Candidate to look at designing a high level architecture for the build part to offer loans to mainstream retail customers
• Customer Onboarding
• Customer Management
• Collections
• Clearing and settlement
• Data processing and analytics
• Campaigns

• Use the simplified flow of loan as the requirements

• Adhere to the architectural principles
• Loosely couple Integration with bought products with ability to refactor / replace
• Ensure a single click deployment of Infrastructure that is immutable

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Loans Reference Architecture

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