API-Led Integration Powers Digital Transformation at Karnataka Bank
The new system is more productive, service delivery times have reduced from days to 4 - 20 minutes, and a majority of banking services have been modernized.
Karnataka Bank’s digital transformation goals complement the Reserve Bank of India’s vision for banks to increase their digital banking presence, thereby broadening financial inclusion and contributing to economic growth in the country.
The bank had multiple applications that were not integrated with each other, and, in spite of the existence of a core banking system, most processes were performed manually. This was not ideal to deliver seamless, fast customer services as banking functions took several days to complete. Moreover, the chances of human error were high.
To improve customer satisfaction and business efficiency, the bank decided to automate its processes, modernize legacy systems, and offer the benefits of digital banking services to customers. Reducing turnaround times for basic processes, such as opening accounts and loan applications, from days to minutes was essential.
Karnataka Bank set up the Digital Center of Excellence (DCoE) to oversee digital transformation efforts. The bank worked with Exzatech, a WSO2 Value Added Reseller, to implement WSO2 API Manager as a key component in the bank’s digital platform.
WSO2 API Manager is used to design, prototype, and publish APIs. WSO2’s offering also manages API governance - the practice of applying common rules relating to standards and security policies to APIs - access controls, and platform security.
Karnataka Bank built a simple, scalable architecture for its digital transformation initiatives. The platform employs a microservices-driven approach as it enables developers to reuse individual components to build new applications rapidly and fix issues with ease.
- The new platform has enabled Karnataka Bank to reduce turnaround times and improve the quality of customer service as intended. The bank automated and modernized approximately 80% of its processes.
- The bank also achieved the goal of significantly lowering turnaround times; customer banking services are now accomplished in 4-20 minutes. Furthermore, an estimated 400 savings accounts have been opened, nearly US $80 million worth of loans approved, and fully integrated banking services are now available to a total customer base of over 11 million.
- The platform now provides the foundation from which Karnataka Bank can offer more digital services by integrating better with its partner ecosystem. The bank has plans to integrate its sales associates and partner organizations into the digital ecosystem, integrate payments with partners in the insurance industry, and combine its credit card services with those of partner credit card vendors.
(Case study contributors: Rohitha Liyanagama and Vidura Gamini Abhaya from WSO2, Exzatech, and Karnataka Bank)
Our vision was to transform Karnataka Bank’s customer-facing touchpoints by modernizing and automating a host of processes that were crucial towards achieving their corporate goals. Partnering with WSO2 on this ensured that we had the muscle to match the mission. With legacy technology impediments being dispelled and advanced capabilities ushered in, the new platform is freeing bank employees to engage creatively while providing customers the responsiveness and nimbleness they want. Enterprise agility, management buy-in, and imbibing a digital culture were just some of the key achievements of this successful digital transformation.”
Anantha Raghava, CEO and founder of Exzatech
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