From Bottleneck to Breakthrough: Scaling Loan Management to 999 TPS and 6 Million Monthly Disbursements

FintechSoftware Product Development

TECHNOLOGIES

SERVICES

EXPERTISES

Project Context

Solution

Outcome

About Client
Our client is a USA-based non-profit organization that stewards a global open-source community dedicated to financial inclusion. The initiative maintains an open technology platform used by financial services providers worldwide to deliver accessible financial services.
With support from certified local partners and a network of global volunteers, the company enables organizations to instantly create, configure, and deploy credit, deposit, and share products across multiple branches, ensuring responsible lending while expanding financial services’ access.
Business challenge
The large end customer faced a critical inflection point in their growth strategy. Their existing loan management infrastructure had become a bottleneck – both financially and operationally.
The core challenge was stark: they needed to process approximately six million new loan disbursements monthly while managing an existing portfolio of ten million closed loans, along with all associated transactions and lifecycle management activities.
Their current system of record simply couldn't deliver this at a sustainable cost.
But scale wasn't the only issue. The customer needed flexibility to support diverse credit products across different market segments and use cases. Each product required unique configurations – different interest calculation methods, repayment schedules, risk parameters, and fee structures.
Their expansion into emerging markets at both consumer and merchant levels depended on finding a solution that could handle this complexity without breaking the budget.
The stakes were high: without a lower-cost, scalable core system, their growth strategy in emerging markets would stall, leaving millions of potential customers without access to vital financial services.
Time was of the essence. The customer understood that our client could become an integral part of their credit stack, drastically reducing costs for their loan management system of record – a key driver for their expansion plans. But they needed the right team to make it work.

Approach
Binariks assembled a team of two Senior Java Engineers and two Senior AQA specialists who have both the technical depth and domain understanding required for complex fintech systems.
Understanding the legacy challenge was crucial. Our client's platform, initially launched in 2006, came with a mature but intricate codebase. Our team participated in comprehensive knowledge transfer sessions covering everything from business logic to technical architecture, ensuring we could navigate the complex calculations and dependencies inherent in loan management systems.
We integrated into the client's Scrum workflow, participating in regular open demos for stakeholders and end users. During refinements, our engineers worked closely with the knowledge owners, contributing to active Q&As and detailed developer notes that clarified requirements and uncovered edge cases early.
Binariks' QA specialists participated in requirement analysis, helped refine user stories, and defined test cases that would validate the system's most complex financial calculations.
Our goal was to move beyond feature delivery and address the underlying concerns about system stability, data accuracy, and scalability that were critical to handling millions of loans monthly.
Implementation
Core Technical Foundation:
The platform runs on a robust technology stack built for high-volume financial operations:
- Backend: Java 17, Spring Boot, and Hibernate
- Database: PostgreSQL for complex queries and data integrity across millions of transactions
- Messaging: ActiveMQ and Kafka managing asynchronous repayment schedules and batch operations
- Infrastructure: Kubernetes and Prometheus for orchestration and monitoring
Key Functional Enhancements:
Our development team delivered critical features that expanded platform capabilities:
- Charge-off Management and Scheduling
- Payment Holidays for Loans
- Improvements to Progressive Loan workflows and charge creation logic
- Performance optimization of batch processing for large-scale repayment cycles
Quality Assurance Transformation:
We fundamentally improved testing and release stability:
- Built ~250 automated end-to-end tests validating complex financial operations (interest accrual, fee allocation, payment calculations)
- Implemented automation frameworks using Java 17, JUnit, Cucumber, and Allure
- Enhanced defect management process for better tracking and resolution
- Introduced exploratory testing sessions to uncover edge cases in the legacy codebase

Value Delivered

The collaboration delivered measurable success, transforming platform stability, performance, and scalability for global financial service providers.
Results achieved:
- Reached 999 transactions per second (TPS) performance benchmark.
- Supported 6M active and 10M closed loans with full operational stability.
- Enabled a lower-cost, scalable core system of record, crucial for expansion in emerging markets.
- Increased release reliability and accuracy through automated QA and defect management improvements.
- Enhanced confidence in financial precision, ensuring correct interest, repayment, and fee calculations across millions of records.
- Positioned the platform for continuous evolution, allowing faster delivery of new features and market adaptations.
The end customer now has a foundation that supports their current scale while providing the flexibility and cost structure needed for their expansion strategy. More importantly, they have a system that continues to evolve – a platform that grows with their business rather than constraining it.

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