BBM Academic Briefing
Transcript of BBM Academic Briefing
SMU Teaching Bank
Developed and Managed by
The School of Information Systems
Singapore Management University
The implementation of a banking enterprise
architecture, as an evolving platform for learning
Presented by: Alan Megargel, Senior Lecturer of Information Systems
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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.”
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 Banking
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.
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4
(Flexcube)
Internet
Banking
Mobile
Banking Teller
Core
Banking
System A
Core
Banking
System B
Algorithmic
Trading
System
Content
Management
System
Existing platforms
available at SMU
can be integrated
into a teaching
bank
Banking apps to
be developed
through student
projects Payment
Gateway
SMU tBank Conceptual Model
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Investing
Savings/
Surplus
Funds
Receiving/
Paying
for Services
Managing
Portfolio
Risk
Deposits/
Investments/
Insurance
Loans/Advances
Fund Raising
Capital/Currency
Commodities
Market
Trade/Project
Finance
PROCESS DATA TECHNOLOGY
Financing
Personal/
Business
Needs
Support for
Cross Border
Trade/Projects
Accounting &
Financial
Controls,
Reporting,
Audits
Internal Risk
Management,
Controls,
Reporting,
Compliance
Customer,
Sales Force,
Distribution Channels,
Data & Analytics
Systems Design,
Controls,
Production
Remittance/ Cash
Management/
Cards
Customer
Needs
Bank
Products
and
Services
Bank
Management
Needs
Financial
Management
Risk
Management
Channel
Management
Operations & Technology
Management
Securities
Safekeeping/
Trade
Settlement
Support
Custodian
Services
SMU Unified Banking Process Framework (UBPF)
The Unified Banking Process Framework is used to visualise how a bank meets customers
needs and internal management needs through processes, data and technology
Investment Banking
& Capital Markets
Corporate &
Institutional Banking
Private Banking & Wealth
Management
Retail
Banking
Customer
Types
Transaction
Fulfillment
Enablers
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REGULATORY BODIES
BANK 1. Banking Business Segment View: Customers, Products and Services for
Investment, Corporate, Private, Retail Banking
3. Bank Management Functions
& Processes View
Middle Office services supporting the
life cycle –
Compliance
Risk Management
Product Control
Accounting
2. Product &
Process Lifecycle
View
Knowledge of end-to-
end process life cycle
based on specific
banking products.
Pro
ce
ss
Customers / Market Participants (internal, external)
4. Data
Lifecycle View
Data used to
implement
business
products,
processes, rules
and analytics
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
5. Software Systems View
UBPF Views
The 11 views of the UBPF are used to understand linkages and flows across
banking processes, data, technology and operations
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Investing
Savings/
Surplus
Funds
Receiving/
Paying
for Services
Managing
Portfolio
Risk
Deposits/
Investments/
Insurance
Loans/Advances
Fund Raising
Capital/Currency
Commodities
Market
Trade/Project
Finance
PROCESS DATA TECHNOLOGY
Financing
Personal/
Business
Needs
Support for
Cross Border
Trade/Projects
Accounting &
Financial
Controls,
Reporting,
Audits
Internal Risk
Management,
Controls,
Reporting,
Compliance
Customer,
Sales Force,
Distribution Channels,
Data & Analytics
Systems Design,
Controls,
Production
Remittance/ Cash
Management/
Cards
Customer
Needs
Bank
Products
and
Services
Bank
Management
Needs
Financial
Management
Risk
Management
Channel
Management
Operations & Technology
Management
Securities
Safekeeping/
Trade
Settlement
Support
Custodian
Services
The UBPF is a framework for understanding linkages between
Customer Needs and Bank Management Needs
Investment Banking
& Capital Markets
Corporate &
Institutional Banking
Private Banking & Wealth
Management
Retail
Banking
Customer
Types
Transaction
Fulfillment
Enablers
UBPF
MITB (Financial Services) Program in a Nutshell
A.1 Banking Products & Processes
A.2 Retail Banking Technology: Processes, IT & Architecture
A.3 Corporate & Institutional Banking Technology: Processes, IT &
Architecture
A.4 Financial Markets Technology: Processes, IT & Architecture
A.5 Lifecycle Implementation of Banking Products
A.6 FS Operational Risk: Foundation & Framework
A.7 FS Operational Risk: Data, Information, System & Architecture
A.1 is compulsory, minimum 4 others
C.1* Innovation Management
* Half module
* Half module
C.2 Spreadsheet Modeling for Technology & Operation Decisions
C.3 IT Project & Vendor Management
C.4 Global Sourcing of Technology& Processes
A. Banking Processes, IT & Architecture C. Information Technology & Project Management
D. General Management forTechnology & Operations
D.1A* Financial Accounting for Financial Services
D.1C* Management Accounting for Technology & Operations Managers
D.2 Strategy & Organisation
D.3 Finance for Operational Technology & Operations Managers
D.4* HRM for Technology & Operations Managers
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.1 Capstone Project• Project definition, development & critique workshops• Industry expert seminars & company site visits
E.2 Project Delivery
E. Capstone Project
2 courses
MITB
Banking
Solution
Architecture
IS480
SMU tBank Engagement Model
Hands-On
Labs
Banking
Channel
Prototypes
Banking
Use Cases
Post-grade capstone
projects specify the
solution architecture for
banking channels
Undergrad projects deliver banking channel prototypes,
based on the solution architecture specified by post-
grade capstone projects
Unified Banking Process
Framework guides all FS
programs
UBPF banking use cases
inform the post-grade
coursework
Banking 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
SMU tBank
SMU tBank Reference Architecture (Phase 1)
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Enterprise Service Bus
MDM BRMS CMS ODS
Payment Services Hub Channel Integration
Retail
Core
Banking
Corporate
Core
Banking
Trade General
Ledger
Treasury
Retail
Internet
Banking
Corporate
Internet
Banking
Retail
Mobile
Banking
Branch
Teller
ATM
Channels
C
ore
Bankin
g
Syste
ms
Ente
rpri
se P
latf
orm
s
SMU tBank Retail Channels
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Retail
Internet
Banking
Retail
Mobile
Banking
Branch
Teller
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 Banking plus
the following:
QuikPay Person to Person Fund
Transfer using Near-Field-
Communication
Real-time Offers Same as Internet Banking
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
Management
Cash Top-up
Forecasting
ATM Location
Optimization
Enterprise Service Bus
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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
ESB Provides • Service Mediation
• Service Orchestration
• Data Transformation
• Data Enrichment
• Content Based Routing
• Location Transparency
• Transaction Management
ESB Conceptual Architecture
Consumer-facing Service Endpoints
SOAP/HTTP or SOAP/JMS
JMS
JMS JMS JMS
Consumer-facing
business services
exposed using enterprise
standard data semantics
JMS used to transport
messages between
service components
Composite Service
orchestrates multiple
Atomic Services
Atomic Services expose
specific provider system
functionality and data
Provider-facing endpoints conform to
provider system’s API, message format
ESB
Adapter
Adapter
Adapters provide
transport protocol
bridging at consumer side
or provider side
BIAN Service Landscape
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• Banking Industry Architecture Network (BIAN)
• SMU Bank service design is guided by BIAN Service Definitions
Business
Domain
Service
Domain
248 Service
Domains
defined BIAN
Metamodel
Channel Integration (layer)
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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
• Enables origination to start on
one channel and complete on
another, without having to key
the same data in twice
• Case Management of customer
complaints
Business Process Management
Business process definition
Participant specification
Service interactions
Workflow patterns
Simulation
Emulation and Debugging
Payment Services Hub
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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
• Transforms payment instructions
to/from ISO20022 standard
• Phase 1 support: • Credit Transfer
• Direct Debit
“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: G00172979
Master Data Management
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Master Data Management
• Real-time MDM functionality
exposed via the ESB
• Contains customer master data,
eg; the CIF record
• Contains cross reference for: • Global to Local CIF number
• CIF number to Account number
• Contains reference data for: • Product codes, Account codes,
Location codes, Branch codes,
Service codes, Response codes,
Complaint codes, RM codes, etc..
Reference Data
Master Data
Conditional Master Data
Transactional Data
Reporting
Business Rules Management System
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Business Rules Management
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
Content Management System
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Content Management 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 Banking, Mobile Banking,
email, post
• Account Statements
• Payment Advices
• Provides document workflow for
various back office processes
Operational Data Store
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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)
• 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
• In-Memory Data Grid
SMU tBank on the Cloud
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• Our long term plan is to deploy SMU tBank
onto the cloud, and open it up for use by
other Universities.
University
A
University
B
University
C
SMU tBank
SMU tBank: Capstone Projects Areas
1. Enterprise Architecture
2. Channel Integration Layer
3. Payment Services Hub
4. Retail Internet Banking
5. Retail Mobile Banking
6. RTGS Simulator
7. General Ledger
8. Credit Limits Management System
9. Service Management System
10. Master Data Management (MDM)
11. Business Rules Management System (BRMS)
12. Operational Data Store (ODS)
13. Real-time In-bound Marketing
14. Corporate Internet Banking
15. Fraud Detection System
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Done
Done
Done
Done
Done
WIP
Done
WIP
Done
SMU Master of IT in Business (Financial Services)
Master of IT in Business Programme (MITB) Courses
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A. Banking
Technology & Operations
B. Analytics
Technology & Applications
C. Information Technology
Management
D. General Management for
Technology & Operations
A.1 Banking Products &
Processes
A.2 Retail Banking Technology &
Operations
A.3 Corporate Banking
Technology & Operations
A.4 Financial Markets Technology
& Operations
A.5 Trading Technology &
Operations
A.6 Payment Technology &
Operations
A.7 Assets Management
Technology & Operations
A.8 Lifecycle Implementation of
Banking 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 Management
C.2 Spreadsheet Modeling for
Technology & Operations
Decisions
C.3 IT Project & Vendor
Management
C.4 Global Sourcing of
Technology & Processes
D.1A/B * Financial Accounting
D.1C * Management Accounting
for Technology &
Operations Managers
D.2 * Strategy & Organisation
D.3 HRM for Technology &
Operations Managers
E. Capstone Project
E.1 Capstone Project
- 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
Thank You
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