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
Ap
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on
Mo
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les
Reference Architecture
RE
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AR
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CO
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AN
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INTE
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BA
CK E
ND
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