In today’s ever-changing banking and finance industry, embracing digital transformation is essential for staying competitive. Composable architecture stands out as a game changer, transforming how software solutions are created and deployed. This forward-thinking approach provides unparalleled adaptability, scalability, and effectiveness, completely transforming how customers interact with financial services. As client demands evolve, traditional onboarding methods are falling short. Enter digital onboarding platforms: indispensable tools for ramping up customer satisfaction, simplifying procedures, and boosting productivity.

Understanding Digital Onboarding Platforms

What are Digital Onboarding Platforms, and Why are they Important?

Digital onboarding platforms are the gateway to a seamless and convenient customer experience in the banking and financial sectors. They allow customers to open accounts, apply for loans, and access financial services online, without the need for physical interaction. In today’s digital-first world, these platforms are crucial for attracting and retaining customers.

Evolution of Digital Onboarding Platforms in Banking and Finance

Over the years, digital onboarding platforms have evolved from static, monolithic systems to dynamic, agile solutions. Traditional approaches often suffer from rigid architectures, making it difficult for banks and financial institutions to innovate quickly. Any changes or updates to the system require extensive coding and testing, leading to delays and increased costs.

Another challenge with traditional onboarding processes is the poor customer experience they offer. Lengthy forms, cumbersome verification procedures, and lack of personalisation can frustrate customers and drive them away to your competitors.

Read here for more information on The Proven Results of JurisTech’s Digital Onboarding Platform.

Understanding Composable Architecture

Composable architecture is a modular approach to system design that emphasises the assembly of independent, interchangeable components. These components, known as microservices, are loosely coupled and can be easily combined and reconfigured to meet specific business needs.

Core Principles of Composable Architecture

According to Gartner, at the heart of composable architecture lie four core principles:

Modularity: Composable architecture encourages the breaking down of large, complex systems into smaller, reusable services or modules, each of which is in charge of carrying out particular business operations. This modular design enables greater flexibility, as individual components can be developed, deployed, and scaled independently, without impacting the entire system.

Autonomy: Allowing these modular parts to function separately and integrate with other parts with ease.

Orchestration: Using APIs and other integration tools, coordinating these independent components’ interactions and integration.

Discovery: Making it simple to find and use pertinent parts from both internal and external sources. 

Key Components of Composable Architecture

API-driven Approach

At the heart of composable architecture is an API-driven approach. APIs (Application Programming Interfaces) allow different components of the onboarding platform to communicate with each other seamlessly. This modular approach makes it easier to integrate new services and functionalities, all without throwing a spanner in the works of the existing infrastructure.

Microservices Architecture

Composable architecture relies on a microservices architecture, where applications are broken down into smaller, independent services. Each service performs a specific function and can be developed, deployed, and scaled independently. This makes the system more resilient and easier to maintain.

Containerisation

Containerisation is a key aspect of composable architecture, enabling the packaging of applications and their dependencies into standardised units called containers. This ensures consistency across different environments and facilitates easier deployment and management of software components.

Read here for more information on Composable Architecture in Banking.

Benefits of Composable Architecture in Digital Onboarding

Enhanced Flexibility and Scalability

The inherent scalability of microservices enables digital onboarding platforms to scale horizontally, adding or removing instances of services dynamically to accommodate fluctuations in user demand. This flexibility guarantees top-notch performance and dependability, even during peak times, crafting a silky-smooth onboarding journey for customers.

Enhanced Security and Compliance:

Composable architecture facilitates granular control over security measures, allowing organisations to implement fine-grained access controls and encryption mechanisms at the component level. This layered security strategy bolsters the overall defences of digital onboarding platforms, safeguarding sensitive customer data and upholding compliance with regulatory standards.

Cost Efficiency

Although the upfront cost of adopting composable architecture may raise eyebrows, the long-term benefits are worth every penny. By axing needless complexity and smoothing out operations, banks can slash their IT expenses, boost efficiency, and fast-track the launch of fresh products and services.

Accelerated Time-to-Market

The modular nature of composable architecture facilitates rapid development and deployment cycles. This means organisations can roll out new features and upgrades to their onboarding platforms at lightning speeds, seizing the competitive edge and grabbing hold of fresh opportunities in the market.

Implementing Composable Architecture in Digital Onboarding for Banking and Financial Institutions

Identifying Use Cases

Prior to implementing composable architecture, organisations must pinpoint specific use cases and business scenarios where it can deliver the most value. Common use cases include digital account opening, loan origination, KYC (Know Your Customer) processes, and risk assessment.

Best Practices for Implementation

Successful implementation of composable architecture requires careful planning, execution, and governance. Key best practices include:

Start Small, Scale Gradually: Begin with a small, well-defined project and expand iteratively, incorporating lessons learned along the way.

Focus on Business Value: Prioritise features and functionalities that align with business goals and customer needs.

Embrace DevOps Culture: Cultivate collaboration and communication between development and operations teams, smoothing the delivery process and boosting agility.

Monitor and Measure Performance: Implement robust monitoring and analytics tools to track system performance, spot bottlenecks, and optimise resource usage.

Overcoming Implementation Challenges

Despite its many advantages, implementing composable architecture can come with its fair share of hurdles, such as:

Organisational Resistance: Some stakeholders may resist the shift from traditional development practices they’re accustomed to.

Technical Complexity: Managing a large number of microservices and ensuring their seamless integration can be technically challenging.

Security and Compliance Concerns: Safeguarding data and meeting compliance standards in a dispersed, microservices-driven setup demands thorough planning and robust controls.

Case Study: Success Story in the Financial Sector

Chinese Bank WeBank Embracing Composable Architecture

WeBank’s core banking system is built on a microservices architecture, enabling swift adaptation to market shifts. This setup empowers WeBank to roll out fresh solutions, products, and services in under 20 days, thanks to the reuse and integration of existing components.

As a frontrunner in composable banking on the global stage, WeBank has swiftly risen to become China’s largest digital bank.

Building a Roadmap: Planning for Composable Architecture Adoption in Digital Onboarding

Assessing Organisational Readiness

Before embarking on the composable architecture journey, organisations should assess their readiness in terms of:

Technical Capabilities: Evaluate existing IT infrastructure, skills, and capabilities to determine readiness for adopting composable architecture.

Organisational Culture: Assess the cultural readiness for openness to change, teamwork, and innovation.

Strategic Alignment: Ensure alignment between composable architecture initiatives and broader business objectives and priorities.

Embracing the Future with Composable Architecture

As we navigate the ever-changing landscape of the banking and financial industry, one thing remains clear: embracing composable architecture in digital onboarding platforms is not just a trend, but a necessity. By realising its full potential, organisations can stimulate innovation, grab new opportunities, and stay ahead of the competition in the market.

JurisTech, Your Preferred Partner

At JurisTech, we are committed to giving your digital transformation initiatives the best possible support. In order to ensure that we provide the most competitive and effective solutions for the fintech landscape, Visa, a reliable partner in the Asia Pacific region, has accredited five of our software solutions, including our digital onboarding platform.

The validation of Visa highlights our dedication to providing consumers with quick and safe access to international technology suppliers. Our award-winning proficiency in digital customer onboarding and seamless integration enables your customers to have an exceptional customer onboarding experience with your company.

Built on a solid microservices architecture, our digital onboarding platform boasts integration capabilities via APIs and is fundamentally designed to be both scalable and flexible. Not only that, but we employ containerisation of our products via Continuous Integration and Continuous Deployment (CI/CD) using Gitlab and Jenkins, just to name a few. 

You can rely on our team to help you navigate your system’s journey and precisely match it with your business requirements. Our members have a wealth of industry experience and combine technical expertise with business acumen. In addition, we offer thorough training prior to, during, and following project implementations to guarantee that all of your support requirements are met.

We place a high value on mutual understanding of performance expectations and go above and beyond to ensure that our clients have a positive experience during the digital transformation process.

For a sneak peek into our offerings, contact us today for a free demo. Find out how to improve customer satisfaction and streamline your onboarding process with JurisTech’s digital onboarding platform.

About JurisTech

JurisTech is a leading fintech company, specialising in enterprise-class software solutions for banks, financial institutions, telecommunications, and automobile companies globally.

We power economies by reimagining financial services with cutting-edge software solutions, which includes artificial intelligence (AI), auto-decisioning, digital customer onboarding, loan origination, credit scoring, loan documentation, litigation, and debt collection.

Our solutions have enabled businesses across a broad array of industries to undergo digital transformation, providing enhanced customer experiences and, most importantly, achieving their business goals.