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We have planned to create a bank loan application in Drupal. The Application does not have any own users records, but it completely depends on external service provider.

For example, when we log in to the application, the username and password should hit the service provider, and fetch the result from the provider; the login information should be validated into the application.

How do I implement the web service in Drupal? What type of modules do I need to use?

I need to be able to do CRUD operations using web services.

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    Can you elaborate if you want to consume or provide services? It is not clear from your description wether Drupal is the server or the client. And if you want to consume services, you need to tell what kind: XML-RPC, SOAP, Rest, ... – Berdir May 18 '12 at 7:16
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I use services module to create content in drupal 7. It is very complete and as Rama mentioned it provides with json and other formats. The following resources helped me to understand services in drupal.

  1. create a custom web service
  2. book drupal 7 web services

Hope it helps

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I've used the soapclient module in D6 for my cause with a SOAP server. It works by making SOAP calls and keeps things really simple. One method to instantiate the SOAP object and another to make the call. It has a good test page where you could enter the webservice end point, the mode like XML RPC etc. and other options such as the service method and service parameters and test the response which is quite good as you can test the service without any actual code. If you plan on implementing webservice with SOAP it is a nice module.

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in Drupal 7 services 3.x is default module. U can use REST server as can handle CRUD operations. In few simple steps you can create an end point and choose your resources. It also offers you the json,xml formats

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