SMU Teaching Bank. The implementation of a banking enterprise architecture, as an evolving platform for learning

Transcription

1 SMU Teaching Bank The implementation of a banking enterprise architecture, as an evolving platform for learning Developed and Managed by The School of Information Systems Singapore University Presented by: Alan Megargel, Senior Lecturer of Information Systems

2 SMU Teaching Bank SMU has embarked on a multiyear programme entitled SMU Bank for Financial Services Education, referred to as SMU Teaching Bank (or SMU tbank ). Starting from a clean sheet, we are building a teaching bank from the ground up, using today s architecture best practices. The mission of SMU tbank is to become a world class teaching bank, generating an on-going supply of undergrad and postgrad student projects whereby classroom learning outcomes can be put into practice, leveraging industry leading banking software and enterprise platforms. 2

3 SMU tbank Guiding Principles 1. SMU tbank shall exist for academic purposes only, to support banking related coursework, labs, and student projects. 2. SMU tbank shall align to, and inform, SMU s Unified Process Framework. 3. SMU tbank shall be assembled using a mixture of vendor products, in order to demonstrate real world change scenarios: A core banking system replacement A bank merger, whereby multiple vendor products need to coexist 4. SMU tbank shall be a platform for collaboration with banks and product vendors, for incubating new innovations. 3

4 SMU tbank Conceptual Model apps to be developed through student projects Internet Mobile Teller Payment Gateway Existing platforms available at SMU can be integrated into a teaching bank Core System A Core System B Algorithmic Trading System Content System (Flexcube) 4

5 SMU Unified Process Framework (UBPF) Customer Types Investment & Capital Markets Corporate & Institutional Private & Wealth Retail Customer Needs Investing Savings/ Surplus Funds Financing Personal/ Business Needs Support for Cross Border Trade/Projects Receiving/ Paying for Services Managing Portfolio Risk Securities Safekeeping/ Trade Settlement Support Bank Products and Services Deposits/ Investments/ Insurance Loans/Advances Fund Raising Trade/Project Finance Remittance/ Cash / Cards Capital/Currency Commodities Market Custodian Services Transaction Fulfillment Enablers PROCESS DATA TECHNOLOGY Bank Needs Accounting & Financial Controls, Reporting, Audits Financial Internal Risk, Controls, Reporting, Compliance Risk Customer, Sales Force, Distribution Channels, Data & Analytics Channel Systems Design, Controls, Production Operations & Technology The Unified Process Framework is used to visualise how a bank meets customers needs and internal management needs through processes, data and technology 5

6 UBPF Views Process REGULATORY BODIES Customers / Market Participants (internal, external) BANK 1. Business Segment View: Customers, Products and Services for Investment, Corporate, Private, Retail 2. Product & Process Lifecycle View Knowledge of end-toend process life cycle based on specific banking products. 3. Bank Functions & Processes View Middle Office services supporting the life cycle Compliance Risk Product Control Accounting 4. Data Lifecycle View Data used to implement business products, processes, rules and analytics 5. Software Systems View 6. Channel Delivery & Channel Infrastructure View 7. Enterprise Architecture & Integration View 8. Organization and Sourcing View 9. Process Performance View 10. Total Cost of Process Execution View 11. Change Scenario & Impact Tracing View The 11 views of the UBPF are used to understand linkages and flows across banking processes, data, technology and operations 6

7 SMU tbank Engagement Model Unified Process Framework guides all FS programs UBPF The UBPF is a framework for understanding linkages between Customer Needs and Bank Needs Post-grade capstone projects specify the solution architecture for banking channels Undergrad projects deliver banking channel prototypes, based on the solution architecture specified by postgrade capstone projects IS480 Customer Types Customer Needs Bank Products and Services Transaction Fulfillment Enablers Bank Needs Investment Corporate & Private & Wealth Retail & Capital Markets Institutional Securities Investing Financing Support for Receiving/ Managing Safekeeping/ Savings/ Personal/ Cross Border Paying Portfolio Trade Surplus Business Trade/Projects for Services Risk Settlement Funds Needs Support Deposits/ Remittance/ Cash Capital/Currency Custodian Loans/Advances Trade/Project Investments/ / Commodities Services Fund Raising Finance Insurance Cards Market PROCESS DATA TECHNOLOGY Accounting & Internal Risk Financial, Customer, Systems Design, Controls, Controls, Sales Force, Controls, Reporting, Reporting, Distribution Channels, Production Audits Compliance Data & Analytics Solution Architecture Channel Prototypes Financial Risk Channel Operations & Technology MITB A. Processes, IT & Architecture C. Information Technology & Project MITB (Financial Services) Program in a Nutshell D. General for Technology & Operations SMU tbank A.1 Products & Processes C.1* Innovation D.1A* Financial Accounting for Financial Services Use Cases A.2 Retail Technology: Processes, IT & Architecture A.3 Corporate & Institutional Technology: Processes, IT & Architecture A.4 Financial Markets Technology: Processes, IT & Architecture A.5 Lifecycle Implementation of Products A.6 FS Operational Risk: Foundation & Framework A.7 FS Operational Risk: Data, Information, System & Architecture C.2 Spreadsheet Modeling for Technology & Operation Decisions C.3 IT Project & Vendor C.4 Global Sourcing of Technology & Processes * Half module D.1C* Accounting for Technology & Operations Managers D.2 Strategy & Organisation D.3 Finance for Operational Technology & Operations Managers D.4* HRM for Technology & Operations Managers * Half module Hands-On Labs A.1 is compulsory, minimum 4 others C.2 and D.1A are compulsory unless exempted; choose 2.5 other courses across series C or D. Exempted course must be replaced by another course from A, B, C or D series. E. Capstone Project E.1 Capstone Project Project definition, development & critique workshops Industry expert seminars & company site visits 2 courses E.2 Project Delivery UBPF banking use cases inform the post-grade coursework channel prototypes developed by undergrad projects are integrated into the SMU tbank architecture, and are in turn used to support hands-on labs for both undergrad and post-grade courses 7

8 SMU tbank Reference Architecture (Phase 1) Channels Enterprise Platforms Core Systems Retail Internet Corporate Internet Retail Mobile Branch Teller ATM Channel Integration Payment Services Hub Enterprise Service Bus MDM BRMS CMS ODS Retail Core Corporate Core Treasury Trade General Ledger 8

9 SMU tbank Retail Channels Branch Teller Retail Internet Retail Mobile ATM Customer Account Opening PIN Creation Credit Evaluation Accounts CASA Term Deposit Home Loan Auto Loan Education Loan Transactions Deposit/Withdrawal Bill Payment Loan Repayment GIRO / Direct Debit Transaction History Account Maintenance Update Personal Details Setup Preferences Setup Alerts Setup Likes/Interests Apply for Loan Apply for GIRO Account Statement Transactions Setup Beneficiaries Fund Transfer Standing Instruction Bill Payment Transaction History RM Scheduler Real-time Offers Merchant Discounts Bank Products Platforms Supported ios Android Transactions Same as Internet plus the following: QuikPay Person to Person Fund Transfer using Near-Field- Communication Real-time Offers Same as Internet Transactions Cash Withdrawal Fund Transfer Bill Payment Account Maintenance Update Mobile Number ATM Network Mgmt Setup New ATM Monitor ATM Network Utilization & Uptime Cash Inventory Cash Top-up Forecasting ATM Location Optimization 9

10 Enterprise Service Bus Enterprise Service Bus Exposes functionality of banking systems as reuse-able services Data abstraction guided by BIAN service definitions Service mediation maps service consumers to service versions Calls MDM for; Global/Local ID x-ref, response codes, etc.. Message logging and monitoring framework 10

11 ESB Conceptual Architecture ESB Consumer-facing Service Endpoints SOAP/HTTP or SOAP/JMS Adapter JMS JMS JMS Consumer-facing business services exposed using enterprise standard data semantics JMS used to transport messages between service components ESB Provides Service Mediation Service Orchestration Data Transformation Data Enrichment Content Based Routing Location Transparency Transaction JMS Adapter Provider-facing endpoints conform to provider system s API, message format Composite Service orchestrates multiple Atomic Services Atomic Services expose specific provider system functionality and data Adapters provide transport protocol bridging at consumer side or provider side

12 BIAN Service Landscape Industry Architecture Network (BIAN) SMU Bank service design is guided by BIAN Service Definitions Service Domain Business Domain 25/2/ Service Domains defined BIAN Metamodel 12

13 Channel Integration (layer) Channel Integration (layer) Enables 360 view of and by customers across multiple banking channels Long running state-full business process for multi-channel account origination Business Process Business process definition Participant specification Service interactions Workflow patterns Simulation Emulation and Debugging Enables origination to start on one channel and complete on another, without having to key the same data in twice Case of customer complaints 13

14 Payment Services Hub Payment Services Hub Orchestrates end-to-end payment processing, and interbank clearing & settlements Full payment life cycle support validation, repair, credit check, FX, liquidity mgmt, advice/statement Gartner defines a PSH as an intelligent central engine, enforcing the capture and mapping of payment information. It also enforces the rules for all payment workflows, clearing and settlement routes, and risk mitigation procedures. The PSH can also be defined as a "middle-aware financial IT orchestrator. This means it is a solution at the center of payment interactions, capable of invoking services and reacting to events that require other modules. It owns the rules of payment services integration between payment services and other banking systems. Gartner Industry Research ID Number: G Transforms payment instructions to/from ISO20022 standard Phase 1 support: Credit Transfer Direct Debit 14

15 Master Data Master Data Real-time MDM functionality exposed via the ESB Contains customer master data, eg; the CIF record Reporting Contains cross reference for: Global to Local CIF number CIF number to Account number Transactional Data Conditional Master Data Master Data Contains reference data for: Product codes, Account codes, Location codes, Branch codes, Service codes, Response codes, Complaint codes, RM codes, etc.. Reference Data 15

16 Business Rules System Business Rules System Provides centrally managed business rules externalized from the processing logic within channel applications Exposed via the ESB as Decision Services Examples: Credit Decisioning Collections/NPL Handling Product Pricing (interest, fees) Balance Mgmt (sweeps & pools) Payment Prioritization & Routing Customer next best offer 16

17 Content System Content System Provides centrally managed content delivered to customers across various channels Exposed via the ESB as Content Services Examples: Product marketing content delivered via Internet, Mobile, , post Account Statements Payment Advices Provides document workflow for various back office processes 17

18 Operational Data Store Operational Data Store Holds frequently accessed data within an in-memory data grid, for fast access Provides data access at the speed of memory (20 micro sec) In-Memory Data Grid Examples: Customer profile (CIF record) Payment transactions Credit Bureau cache Core banking system cache Supports real-time analytics Customer next best offer, triggered by a customer interaction 18

19 SMU tbank on the Cloud Our long term plan is to deploy SMU tbank onto the cloud, and open it up for use by other Universities. University A SMU tbank University B University C 19

20 SMU tbank: Capstone Projects Areas 1. Enterprise Architecture Done 2. Channel Integration Layer Done 3. Payment Services Hub Done 4. Retail Internet Done 5. Retail Mobile Done 6. RTGS Simulator Done 7. General Ledger WIP 8. Credit Limits System WIP 9. Service System Done 10. Master Data (MDM) 11. Business Rules System (BRMS) 12. Operational Data Store (ODS) 13. Real-time In-bound Marketing 14. Corporate Internet 15. Fraud Detection System 25/2/

21 SMU Master of IT in Business (Financial Services)

22 Master of IT in Business Programme (MITB) Courses A. Technology & Operations B. Analytics Technology & Applications C. Information Technology D. General for Technology & Operations A.1 Products & Processes A.2 Retail Technology & Operations A.3 Corporate Technology & Operations A.4 Financial Markets Technology & Operations A.5 Trading Technology & Operations A.6 Payment Technology & Operations A.7 Assets Technology & Operations A.8 Lifecycle Implementation of Products A.9 FS Operational Risk I: Foundation & Framework A.10 FS Operational Risk II: Technology, & Systems B.1 Analytics Framework & Business Context B.2 Data Analytics Lab B.3 Customer Analytics & Applications B.4 Operations Analytics & Applications B.5 Cloud and Big Data Analytics B.6 Visual Analytics & Applications B.7 Text Analytics & Applications B. 8 Social Analytics & Applications B.9 Mobile Analytics & Applications B.10 Business Analytics Practicum C.1 * Innovation C.2 Spreadsheet Modeling for Technology & Operations Decisions C.3 IT Project & Vendor C.4 Global Sourcing of Technology & Processes E.1 Capstone Project E. Capstone Project D.1A/B * Financial Accounting D.1C * Accounting for Technology & Operations Managers D.2 * Strategy & Organisation D.3 HRM for Technology & Operations Managers - Project Definition, development and critique workshops - Industry expert seminars and company suite visits E.2 Project Delivery * = ½ credit course, 7 sessions per term Bold = New courses phasing in from Aug 2013 onward 22

23 Thank You 23