SaaS Lending Platform Integration

Digital bank

The bank was considering integrating an end-to-end SaaS loan origination and management platform into its architecture. ALP advised on the gap analysis, the platform diligence, the commercial terms and the integration requirements.

Scope of work

  • Needs assessment defining the requirements and deficiencies of the current technology architecture, with integration factors assessed across APIs, programming languages, data storage and formats, cloud infrastructure, security protocols and scalability.

  • Gap analysis comparing platform features against those requirements to identify gaps and define customisation needs, both in the third-party platform and in the bank's own infrastructure.

  • Technology due diligence and credit assessment performed on the platform, covering:

    • Technical architecture, rules engine and underwriting systems
    • APIs and SDKs, credit scoring models and capital market offerings
    • Deployment, patching and upgrade processes, and security tooling
    • Integration with existing core systems, and gap analysis against Sharia product requirements
  • Total cost of ownership estimated across upfront costs, recurring fees and customisation, including implementation, maintenance, training and the productivity impact of transition.

  • Negotiation supported through identification of commercial levers:

    • Volume discounts, long-term contracts and bundled services
    • Alternative pricing constructs, including subscription against perpetual licensing and usage-based pricing
    • Contract terms covering exit, termination and renewal

Outcome and value

  • A simplified integration architecture recommended, covering only the modules worth implementing.
  • Licence fee structure advised, including a usage-based pricing construct.
  • Integration enhancements specified across technical architecture, rules engine and credit scoring models.
  • A decision made on evidence rather than on vendor representation.
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