Enabling Digital Transformation in Core Banking

Nikolaos Vasilopoulos

Alpha Bank

Existing Landscape

Legacy software maintained over decades by different engineers having different programming styles

Different user experience for various banking services

Client Server Architecture for core banking applications

Different back end applications and systems to support banking operations and product processing

The need to Transform

Relentless Competition Banking Industry EnvironmentReduce Costs

Increasing Business Needs Faster Time to Market Discard obsolete technologies

Transformation Drivers

Enable Digital Transformation

Streamline User Experience

Centralize Business Processes

Extensibility by Design

Simplify Operations

Increase agility and achieve shorter time to market

Pillars of Change

Externalize business logic and rules from the core applications aiming to reusability, maintainability and knowledge

Modularize application architecture and transform back end systems in a service oriented approach

Create a single User Workspace which will have the ability to incorporate all the applications within the bank

Adopt modern technologies and tap to the community resources and knowledge

Introduce an integration layer to orchestrate back end services and expose business services to consumers

Affected Business Areas

End Users

• Unify the user interface• Create a virtual workspace• Speed up cross-system operations

Core Business

• Path to increase digitization• Access to the business logic• Flexibility in developing new ideas

Technology

• Separation of responsibility• Incorporate modern technologies• Avoid redundancy & increase maintainability• Embrace DevOps capabilities

Project Dynamics

Disperse Technologies

Coexistence Issues

Business Logic embedded in legacy code

Different Vendors

Vertical Teams

SOA Experience

Aptitude for Change

Stability & Speed

Comfort

Technology People Environment

Solution Approach

AnalyzeArchitect Design Constraints

User Interface Components

Back End Components

Horizontal Components

Technology Solution

Core Components

Methodologies

Service Components

End 2 End Footprint

Backwards Compatibility

Parallel Development Activities

Outside Interfaces

Keep Assets Core Banking Unaffected

Release Planning

Unisys ClearPath Engine

• Core Banking System for Liabilities & Investment Products

• Product Processing Capabilities

• Business Data Store

• Batch Processing

• ACOB / UCOB Coexistence

• Retain DMS Structure

• Common Storage DTPRA JEE Connector

Conversation Mode

Use of HVTIP

ICP (Initial Control Program)

OS2200 – RH Fuse Integration

JAX-WS

PROCESS INITIATION

INTEGRATION STEPS

AEJB CALL

INTEGRATION STEPS

B

direct:startDTPRASTEP 1

DTPRASTEP 2

DTPRASTEP 3

TPSCVSTART

TPRETURN

TPSEND

TPRECV

COMPONENT1

TPSEND

TPRECV

COMPONENT2

TPSEND

TPRECV

COMPONENT3

Inner Camel Route

Integration Route

Generic HVTIP ICP OLTP service to dispatch components (preserves COMMON STORAGE etc.)

Components as HVTIP subprograms

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Reference Architecture

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VERTICALS

CHANNEL LOGIC & API GATEWAY

INTERNET EXTRANET INTERNAL APPSUNIFIED USER

INTERFACE

INTEGRATION, ORCHESTRATION, RULES, BUSINESS PROCESSES

CORE BANKING(LIABILITIES & INVESTMENTS)

CORE BANKING(ASSETS)

...OTHER SYSTEMS

PERSISTENCE & LOGGING

SECURITY & PROFILING

CACHE

Implementation Timeline

Architecture Release 1 Release 2 Release n

Processes & Methods

Analysis & Deltas

Prototyping & Core Application Functions

Foundation Activities

Release 1

Release 2