Core Business System Solution

Transcription

1 Core Business System Solution With the end of the transitional period for WTO, China opens its financial sector to the outside world in an all-round way, competition in the banking industry has intensified, and the financial environment on which banks depend for survival is undergoing profound changes, confronting the majority of banks with the challenge of transformation. A number of banks are actively looking for appropriate core business system solution with a view to improve their core competence by updating their business supporting system. As one of the most important application systems in the bank IT Application System, the core business system is the key element that influences the overall level of the bank s IT applications. The core business system in the traditional domestic banks is oriented toward transaction-driven accounting, while the new generation international core business system is customer-centered, product-based, and oriented to the whole process of the design, production and sales management of financial products. A new generation bank core business system solution full of vitality should have the following four typical characteristics: 1. Advanced operation and management concepts The solution is customer-centered, market-oriented with emphasis on product innovations and integrating service channels, making the new generation core business system truly become the transaction processing system which provides clients with the basic financial products. 2. Well-defined business modules: The core business system must include client information, deposits, loans, 1

2 payments, and other basic business modules, and it can also include the expanded business modules. To meet the needs for the development of bank s business, these modules allow flexible combination. 3. Flexible architecture Aiming at bank s overall applications, the core business system solution is created based on SOA framework through loose coupling and the structured planning, which achieves core business functions by a series of application products, and can construct the whole banking application system by iterative development. 4. Standardized definitions of business services Definition of business services includes financial service and financial data model, and the business services standardization can eliminate the dependence between various application systems, which allows the banks to focus on planning business services construction and improve their core competence with less concern over the specific application products,. The organic combination of the above four characteristics makes sure that the core business system can satisfy the needs for development of banking business for a long period after go-live successfully. According to the business needs and development planning of the domestic banks and in light of advanced operational concept of the modern banks, Digital China launched the core business system solution on Sm@rtSymbols, which is designed to help banks establish a highly efficient and stable, open and advanced operating platform for new generation banking core business application. Digital China Core Business System Solution Based on the MODEL BANK framework, Digital China s core business system solution adopts Sm@rt series of software products, which are distributed and integrated by reasonable application functions, providing the banks with a core business system solution. 2

3 The business functions of all the products are as follows: 1. Comprehensive counter system Provides important client service channels, achieves teller s daily operational function and the internal network management function. The latter includes: organizational management, teller management, role management, tail-box management, heavy air management, peripheral management and so on. 2. Core business system Sm@rtSymbols Sm@rtSymbols is bank s core business system product launched by Digital China. As a customer-centered trading system covering the common core businesses in the financial sector, the core business system has the main business models with the following functions: Client Information Management Module (CIF): records clients information completely and in detail and provides scientific and logic decision-making basis for accounting and management of bank s business activities. Deposit Module (RB): Provides all-round processing functions for deposit business and can provide parameter-enabled automatic operation for the entire transaction cycle of all types of deposits. Loan Module (CL): Provides the whole bank with basis and platforms for the accuracy, uniqueness and timeliness of loan operation data and supports various types of domestic and foreign common loan products and process. International Settlements Module (TF): Provides full-range business operations for the international settlement business. Funds Module (TR): Meets the needs of banks and financial institutions for fund allocation and transfer. Domestic Payment Module (DP): designed for the transaction processing generated from deposit accounts, current accounts and incoming and outgoing 3

4 clearing documents. General Ledger Module (GL): Records all the transactions generated from the business to the unified general ledger account, and provides the function of connecting the interface of the third party s corporate general ledger system. 3. Financial Product Studio (Sm@rtFPS) Sm@rtFPS assists the product administrator in financial product designing and management with business terminology by providing a graphical financial product definition platform. 4. Enterprise Client Information System Sm@rtECIF Sm@rtECIF integrates the client information of all the application systems in the whole blank and establishes a unified customer view. 5. Enterprise Service Bus and Financial Service Standards (Sm@rtIntegrator) Sm@rtIntegrator achieves the whole bank s application integration through service integration and it also provides payment gateway business functions to achieve the modernized payment (large or small amount), SWIFT and Unionpay message processing. 6. Data integration platform and financial data model (Sm@rtFintelligen) Sm@rtFintelligen achieves information integration through data concentration, standardization and modeling and it also offers the functions of report processing and regulatory data submission. Advantages and features of the solution Digital China s core business system solution features the following : 1. Profound understanding of bank s new generation core business system Digital China incorporates the philosophy of the financial product designing and management into the core business system solution. On one hand, Sm@rtSymbols itself is a powerful financial product factory that supports the production, sales and 4

5 internal accounting of a full range of financial products. On the other hand, Digital China, from a higher level, provides banks with a financial product studio designed for financial product designing and management. This provides banks financial products with one-stop support from design to production, sales and services and will surely play an active role in enhancing the competitiveness in the banking market. 2. ModelB@nk, the best practice of banking IT application architecture ModelB@nk architecture embodies SOA s design concepts, adheres to the design principles of openness and loose coupling, carefully plans the deployment of various application systems, and makes the interface standards for various systems. ModelB@nk designs two essential infrastructures necessary for banks application integration: Enterprise Service Bus (ESB) and data integration platform (EDIP), and constructs banks service center and data center. They are not only a must for the construction of the core business system but also lay a foundation for banks to build the future application system. 3. Openness, maturity and standardization ensure the best cost-effectiveness of high performance Digital China adheres to the open-standard concept to construct the core business system solution on the open platforms and make the application system itself independent of any particular brands and know-how, which offers clients the best cost-effectiveness. Successful Cases Digital China s core business solution has been widely recognized by the industry and has been adopted by many banks including the CDB, BEA China, Morgan (China), Jinan Commercial Bank, Taiyuan Commercial Bank, Shenzhen Rural Commercial Bank and so forth, of which the CDB and BEA China has had the system go-live successfully. 1. CDB 5

6 CDB initiated the implementation of the core business system in August 2003, conducted trial operation in October 2004, and went live nationwide in April Business covers deposits, loans, foreign exchange trading, interbank lending, international settlement, bond issuance and trading, foreign exchange payment, large-amount RMB payment and treasury business. Go-live range covers 32 branches of the whole bank. 2. BEA China For BEA China project, implementation of the core business system was initiated in November 2005, seeing go-live nationwide in April Business covers deposits, loans (RMB and foreign currencies), foreign exchange trading, interbank lending, international settlement, bond issuance and trading, foreign exchange payment, Large-amount RMB payment and treasury business. Go-live range covers all the branches in China. 6