Automating Credit Checks with a Reliable API-Based Event System
Problem Statement:
The customer, a leading power and utility company, required a more efficient way to conduct credit checks during contract creation. Their existing manual process lacked the benefits of an API-Based Event System, resulting in higher operational costs and delayed decision-making. This inefficiency directly impacted liquidity and receivables management.
Key challenges included:
Complex Manual Processing: Manual credit check steps increased processing time and errors.
Operational Overhead: Costs were high due to the labor-intensive nature of credit checks.
Scalability Issues: A growing customer base required a solution that could scale without adding operational burdens.
Data Integration and Transparency: They needed reliable integration with third-party credit check providers and a clear, transparent view of all processes.
Proposed Solution & Architecture:
Unified Techs proposed an automated API-Based Event System integrated with the customer’s existing contract management platform. This solution facilitated automated credit checks during contract creation while ensuring speed, reliability, and security.
The architecture leveraged AWS services such as API Gateway, Lambda, and SQS (learn more about event-driven architectures) to create a seamless flow:
- Contract Creation and API Call: Upon contract initiation, the system would trigger an API call to initiate the credit check.
- Credit Check Processing: The credit check process was initiated through an API call, reading the necessary configurations and forwarding the request to the third-party credit check provider.
- Event Processing and Business Logic: SQS queues were used to manage event traffic and ensure asynchronous handling. Lambda functions processed the business logic for each event.
- 3rd Party Interaction: The system reliably forwarded events and credit check requests to the third-party service provider through API calls, receiving feedback for contract approval or rejection.
- Decision Making: Depending on the result of the credit check, the system would automatically approve, reject, or flag the contract for manual review.
- Process Monitoring: The solution included automated monitoring to ensure transparency and accuracy in the entire workflow.
Architecture:
Metrics for Success:
Reduced Process Costs: Automation reduced manual handling of credit checks by 70%, lowering operational expenses.
Improved Processing Time: Checks completed within minutes accelerated contract approvals.
Enhanced Reliability: Automated workflows reduced credit check errors by 90%.
Seamless Scalability: The architecture scaled without additional manual effort, supporting a growing customer base.
Lessons Learned:
Automation Lowers Operational Overhead: Shifting to an API-Based Event System eliminated bottlenecks and reduced labor-intensive processes.
Seamless Third-Party Integration: A reliable event-driven approach ensured data consistency and improved decision-making.
Scalability Ensures Future Readiness: The system’s flexible architecture allowed for quick scaling without adding complexity.