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Why LIXI2 is a Game-Changer (Part 1)

Why LIXI2 is a Game-Changer (Part 1)
Automation, automation & automation!

Posted on: April 23, 2020


An awesome customer journey in getting access to credit products starts with suppliers having the people, processes, and tools to readily adapt as demands arise. Central to this, but frequently overlooked, is having a software delivery life-cycle that can support the speed of change required. This article shows how innovation around the LIXI2 data standards and tools are driving automation in the complex credit origination and fulfilment ecosystem, and improving our users' ability to change.

In Part 2, we describe the role that LIXI2 plays in reducing the complexity of the data messaging ecosystem, thereby improving efficiency and speed of delivery.

When you think about innovation in mortgages, do your thoughts immediately jump to innovation in the customer journey or the user experience (UX)? Do you start thinking about how to automate the data capture for verification of income and expenses? Digital IDs? E-Signing? Automatic credit decisioning?

Organisations that do provide a best-in-class user experience are certainly happy to talk about it. But it is a mistake to think that you can achieve a sustainable advantage in the user experience by focussing solely on the UX.

Imagine an F1 team being restricted
to only updating their car and
its software once a month!

The world championship Formula 1 Car Racing (F1) team is NOT the team that has the fastest car at the start of the season. Instead, the champion team is the one with the tools, processes, and people that can quickly adapt to whatever situation they face: weather and environmental conditions; different drivers' strengths and weaknesses; wear and tear; as well as changing regulations.

F1 is a great analogy for organisations that deliver (or facilitate the delivery of) credit products to customers. Many of these organisations have undertaken digital transformation programs over the past years. There has been investment in core banking systems (with mixed success) and in UI development but I still see underinvestment in the underlying tools, processes and people that could enable a best in class UX. The many systems that support the entire customer journey are often held together with the technology equivalent of sticky tape and cable ties. This makes sequences of data integrations complex, and almost impossible to automate build processes and end-to-end testing. Don't even think about doing weekly releases!

An absolute must-have in transforming a credit origination and fulfilment process is automation - of code generation, build processes and testing. An automatic gearbox makes gear changes more reliable and consistent than with a manual gearbox, no matter who is driving. Automated software delivery does the same thing - more reliable and consistent change management.

The LIXI2 data standards provide a platform for an unprecedented level of automation through the development of tools and frameworks. Just look at the way the Swagger Specification for describing APIs (now called the OpenAPI Specification) has paved the way for an incredible suite of tools and platforms to automate and simplify almost all aspects of the design, documentation, development, maintenance and use of REST APIs.

The same is happening around the LIXI2 Data Standards - with a suite of tools evolving to help with almost all aspects of the design, documentation, development, maintenance and use of interfaces and systems based on the LIXI2 Data Standards. We already have tools for:

These tools are only the beginning of automation using LIXI2. The rate that these tools evolve will accelerate as an increasing number of LIXI2 implementations take place. In addition, since the suite of standards are consistent across the entire mortgage life-cycle, a wide range of organisations can benefit, collaborate and contribute to the tools.

In Part 2, we describe the role that LIXI2 plays in reducing the complexity of the data messaging ecosystem, thereby improving efficiency and speed of delivery.

If you're interested in learning more, please get in touch.


Written by:
Shane Rigby, LIXI Limited CEO
First Published: April 23, 2020