A new offering from Microsoft will allow banks to automate the retail lending processes through a cloud-based service.

Microsoft announced its Cloud for Financial Services on Wednesday, though this is currently a soft launch in which only select companies are participating. The package includes several offerings that will help banks automate and digitalize, including its pre-built Loan Manager, which Microsoft said can automate the lending process.

“The retail lending process is typically very siloed, nontransparent and involves multiple touchpoints to originate a loan, with the average U.S. bank taking 45 days to originate a home loan,” Microsoft spokesperson Maria Carlson told Bank Automation News.

The Loan Manager platform automates lending processes, supports remote sales and services, and reduces the time spent securing approvals and signatures, Carlson said. While she did not clarify which lending processes it automates, it does digitalize and automate the traditional paper-based approval and signature process, according to the press release.

Microsoft has been dipping into financial services for years now, through various partnerships, including one with Mastercard, and another with Finastra through its cloud business, Microsoft Azure. This play, however, is much more distinct, offering a vertical stack of solutions that support bank processes and analytics.

Beyond the retail lending automation, the cloud-based solutions simplify banking in other ways, including offering self-service tools to support customer onboarding and communication across all channels. Loan Manager also provides mortgage loan officers with the ability to monitor the loan process, according to Microsoft.

For compliance and risk management, Microsoft’s cloud solution incorporates financial crime protection, using adaptive artificial intelligence (AI) technology to detect fraud patterns, and risk analytics to support modeling and regulatory reporting, Microsoft stated

Two banks have already tried the software-as-a-service solutions in a phase Microsoft called a “private preview,” with select companies. The $421.6 billion Capital One worked with Microsoft to use its cloud-based authorization engine to improve fraud detection accuracy, and the Amsterdam-based ABN AMRO Bank is using the cloud solution to enhance customer experiences through digital channels.

ABN AMRO, which had assets of $455.1 billion as of 2019, leverages Microsoft Teams for video banking, document sharing and digital contract signing, according to Microsoft. That’s supported by integration between the cloud solutions and other Microsoft tools, including its process automation solution, Microsoft Power Platform, which includes a robotic process automation tool and can be used to create chatbots.

Cloud for Financial Services also leverages AI for advanced analytics, as well as a common data model and tools for both professional developers and citizen developers. It also includes APIs to support integration, although the company did not specify for which solutions it provides hooks. These technologies allow the system to incorporate financial, behavioral and demographic data in one unified customer view, according to the release.

In March, the Cloud for Financial Services offering will enter what Microsoft calls the “public preview,” when any company can apply to be chosen to work with the cloud solution. General availability will be announced at a later date.

Shares of Microsoft [MSFT] were trading at $232.38 at 4:25 p.m. ET, up 1.48% from market open. Microsoft’s market capitalization is $1.7 trillion.

Bank Automation Ignite, on April 13-14, is the event for inspiring automation initiatives and investment in financial services. At the virtual event, financial services professionals can discover new use cases and technologies that are accelerating automation in banking. Learn more and register at www.BankAutomationIgnite.com.