Empowering FinTech: Bridging the Gap with PowerApps and Core Banking Systems Integration

In the banking industry, there is a need to address the knee-jerk reactions that often come with operational urgency and sudden change in focus. The pandemic has disrupted decades of consumer banking preferences, process disbursals, and expectations overnight. Banks were already reeling under pre-crisis challenges like revenue pressures, low profitability, and disruption from innovative fintech players. At the same time, banks had to address macroeconomic challenges like credit access and distributing fiscal packages through the crisis. Apart from these issues, banks have a significant role in continuously helping their customers rebuild financial stability and business outcomes. Banks generally use site (CBS) as transaction processing systems that support banks’ back-end operations across core functions, such as account opening, account setup, transaction processing, deposits processing, and loan processing. While CBS helps banks improve efficiency, customer experience, compliance, and innovation, there are some limitations to consider especially the cost of maintenance and changes.

Power Platform can help banks address these challenges by providing a holistic solution for all automation, low-code, AI and ML, and virtual conversational needs. It can help banks serve customers in the right channel with the right products and services, improve efficiencies and process automation, and adapt to technology for virtual services to stay resilient. Microsoft Power Platform is a suite of tools that includes Power BI, Power Automate, Power Apps, and Power Virtual Agents1. Power Apps can provide banks with a common underlying data platform while still giving each group the unique experience it needs. This will improve collaboration between the typical siloed departments. McKinsey estimates that banks can use Power Platform to automate up to 80% of their transactional operations and up to 40% of more strategic activities.

Power BI

Banks can use Power BI to create interactive dashboards and reports that provide insights into customer behaviour, transaction patterns, and other key metrics. For example, banks can use Power BI to analyse customer data from CBS and identify cross-selling opportunities.

Power Automate

Banks can use Power Automate to automate repetitive tasks and streamline processes. For example, banks can use Power Automate to automate the loan approval process by automatically sending notifications to customers when their loan application is approved or rejected.

Power Apps

Banks can use Power Apps to create custom applications that meet their unique business needs. For example, banks can use Power Apps to create a mobile app that allows customers to check their account balances, transfer funds, and pay bills.

Power Virtual Agents

Banks can use Power Virtual Agents to create chatbots that can answer customer queries and provide support after fetching data from their CBS. For example, banks can use Power Virtual Agents to create a chatbot that can help customers reset their passwords or report lost or stolen cards.

Here are some benefits of using Power Platform along with CBS:

Improved efficiency

Power Platform can help banks automate their core operations within CBS, which can reduce manual errors and improve efficiency. For example, automating the loan approval process by automatically sending notifications to customers when their loan application is approved or rejected.

Better customer experience

Power Platform can help banks provide a better customer experience by enabling them to offer personalized services and products. That is done by analysing the customer data from CBS to identify cross-selling opportunities.

Compliance

Power Platform along with CBS can help banks comply with regulatory requirements by providing a centralized platform for managing customer data and transactions.

Innovation

Power Platform can help banks innovate by enabling them to quickly develop and deploy new products and services. For example, creating custom applications that meet their unique business needs.

Cost-effective

Power Platform can be a cost-effective solution for banks, especially for small and medium-sized banks. Power Platform’s low-code approach can help banks reduce development costs and time-to-market.

Looking forward, the CBS-Power Platform duo can help banks address the challenges of the pandemic and the pre-crisis challenges like revenue pressures, low profitability, and disruption from innovative fintech players. Power Platform can help banks serve customers in the right channel with the right products and services, improve efficiencies and process automation, and adapt to technology for virtual services to stay resilient. Banks can also leverage the benefits of Power Platform to create new business models, improve customer experience, and reduce costs.

You may refer to the casestudy to understand a real-world case.

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