Information ManagementIBM Software Banking

As one of North America’s premier financial institutions, Scotiabank is also Canada’s most international bank. Founded in 1832, Scotiabank continues to expand its global reach to offer a diverse range of products and services, including personal, commercial, corporate and investment banking, to some 18.6 million customers in over 50 countries around the world. Through Global Transaction Banking, Scotiabank provides financial solutions including cash management, trade finance and correspondent banking to commercial, corporate and institutional clients worldwide.

The ScotiaConnect® electronic banking online channel provides Scotiabank’s corporate, commercial and small business clients with a centralized and secure view of banking information. Clients rely on ScotiaConnect® to manage cash and investments, send and receive payments and collections, and access comprehensive reports relating to accounts, balances and transactions. However, as client demand for access to real-time information increased and reporting requirements became more complex, Scotiabank found its existing architecture could no longer meet business requirements.

The annual customer satisfaction surveys in recent years indicated that clients required the ability to access real-time balance and transaction data on demand and in multiple formats. Reliance on a single operational database for both online payment and report processing was identified as a limiting factor in delivering this service to the end client, and this served as the primary justification for the Reporting Re-engineering business case.

ScotiabankSatisfies client demand for real-time reporting capabilities

OverviewThe needAs client demand for real-time information increased and reporting requirements became more complex, Scotiabank found its architecture no longer delivered reports and information as quickly as needed.

The solutionWorking with IBM, Scotiabank created a separate data model dedicated entirely to report generation. IBM InfoSphere Change Data Capture facilitates real-time synchronization between Scotiabank’s OLTP and core banking systems and its new OLAP database.

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“The dramatic increase in reporting usage that we have seen since the rollout of the solution confirms the value that our clients place on convenient access to timely, accurate information about their business.”

—Alice Eastman, Senior Vice President, Cash Management and Payment Services, Global Transaction Banking, Scotiabank

Business benefits

•Enhancedonlineperformanceresultingin an average sub-second response time and reducing the end-to-end time to deliver reports by over 100 percent

•ProvidesCAN$1millionannualsavingsin statement printing costs

•Positionsthebanktooffernewreporting services, such as online business intelligence services

The three primary success factors of the project consisted of the following metrics:• To deliver on-demand, real-time, multi-lingual/multi-currency

online reports, in the format desired by the end client• To significantly enhance the performance of the reporting system

in order to reduce wait times for end users• To eliminate user report size and data storage constraints in order

to accommodate client requirements and usage patterns that mandates reporting for large volumes

“We are constantly listening to our clients and focusing on their needs as we plan new investments services,” says Alice Eastman, Senior Vice President, Cash Management and Payment Services, Global Transaction Banking for Scotiabank. “Our clients clearly articulated the need for real-time, on-demand access to information in the formats they required, and this was the primary driver behind the Reporting Re-engineering business case. The dramatic increase in reporting usage that we have seen since the rollout of the solution confirms the value that our clients place on convenient access to timely and accurate information about their business.”

Adds Gene Kosmyna, Vice President, Online Banking Technology, Scotiabank: “The ability to integrate data from back-end systems in various countries will enable us to offer unique features, such as a real-time ‘Global Accounts View’ to our multinational customers.”

ScotiaConnect Reporting Re-engineering: a successful transformation projectAccording to the Business Process Management Journal, approximately 70 percent of all re-engineering projects fail.1 There are multiple root causes for the high failure rate, and the failure to link the business needs with the information technologies that support the business function in question is a key inflection point in the transformation process:

“Reengineering is a fundamental rethinking and transformation of an integrated set of business processes…reengineering requires not only a redesign of business processes but a concurrent examination and redesign of the information technologies that support these processes” (Business Process Management Journal Vol. 8 No. 4, 2002, 352).

1NamchulShin,DonaldF.Jemella,“BusinessProcessReengineeringandPerformanceImprovement,” Business Process Management JournalVol.8No.4(2002):351-363.

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Solution components:Software• IBM®DB2®9.1forLinux,UNIXand

Windows

• IBMInfoSphere®ChangeDataCapture

• IBMAIX®

Services• IBMProfessionalServices

Creating a sense of urgency in relationship to the client needs is a critical step in ensuring that transformation process is ultimately successful. Connecting the design and deployment of a modern technology solution with this particular business need was a key milestone in establishing the impetus to execute the Reporting Re-engineering transformation project.

A new approach to reportingIn 2010, the Scotiabank Technology Solutions Division updated its online information reporting technology and infrastructure for the company’s corporate and commercial clients in Canada. In partnership with IBM® Professional Services, a thorough evaluation of production deployment designs was conducted, and the technical project team recommended implementation of a separate data model dedicated entirely to report generation. This solution offered multiple benefits, including enhanced performance for online report generation and insulating online transaction processing (OLTP) from report creation.

Scotiabank GTB Cash Management PlatformReporting Solution - Logical View

ScotiaConnect®/ScotiaGlobal®

ScotiaConnect®

HOSTCore System

Global Information Services

Online Application

Online Services Tier

User Access

Online TransactionProcessing

TransactionServices

Reporting Services

ReportingSchema

Current BalancesBalance HistoryTransaction History

Online TransactionsEntitlements & Admin Data

Reference Data

OLTP Database OLAP Reporting Database

CDC Target DatabaseCDC Source Database

CDC Source Database

Online ReportProcessing

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(pdf/html/rtf/xls)

Read data from DB logs Transform, Map, & Insert data

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“The ability to integrate data from back-end systems in various countries will enable us to offer unique features, such as a real-time

‘Global Accounts View’ to our multinational customers.”

—Gene Kosmyna, Vice President, Online Banking Technology, Scotiabank

IBM InfoSphere® Change Data Capture (CDC) software facilitates the real-time synchronization between Scotiabank’s OLTP and core banking databases and its online analytic processing (OLAP) database, which runs on IBM DB2® for Linux, UNIX and Windows. Since the data models for the OLTP and OLAP databases are structured and tuned differently, InfoSphere Change Data Capture has to perform not only data replication but also data transformation. The software detects changes in the source system (in this case, the OLTP and core system databases), filters and transforms the data according to business rules, and then updates the target system (the reporting database) with the new information.

“Estimates show that up to 70 percent of transformation projects fail,” says Rob Matys, Director, Global Transaction Banking Technology Solutions for Scotiabank. “In contrast, our transformation project met or exceeded all project-related success criteria. InfoSphere Change Data Capture (CDC) played a central role in enabling this success as it facilitated the re-engineering of the reporting system in parallel with the current online production solution. This provided two key advantages—the ability to incrementally roll out the solution to end clients (as opposed to a big bang mass deployment) and to immediately roll back at the client level if there were any issues reported by the end users. This project was the equivalent of changing the wheels of a car traveling 100 kilometers per hour down the highway, without so much as even slowing down, never mind stopping.”

New services and CAN$1 million annual savingsThe new reporting platform provides end users with on-demand, real-time reports in the format and language of their choice (for example, PDF, Excel, BAI2, etc.). The elapsed report execution time has been reduced to an average sub-second response time. Additionally, because all historical data is stored in the DB2-based reporting database, the overhead on the OLTP system is reduced, creating greater efficiency in transaction performance.

Improved availability of online reports and statements has significantly increased usage of online services and supported the organization’s Paperless Statements initiative, resulting in an annual savings of CAN$1 million on statement printing costs.

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“This project was the equivalent of changing the wheels of a car traveling 100 kilometers per hour down the highway, without so much as even slowing down, never mind stopping.”

—RobMatys,Director,GlobalTransactionBanking Technology Solutions, Scotiabank

IBM InfoSphere Change Data Capture was also leveraged to re-engineer the existing business logic embedded in the legacy batch processing layer that populated the OLTP database in the first generation of the ScotiaConnect® platform. The re-engineering process at the business logic layer has greatly simplified the overall system design and has delivered additional benefits inherent to modern object-oriented technologies, such as encapsulation, transparency, re-usability, and reduction of overall total cost of ownership from a maintenance and support perspective.

With IBM InfoSphere Change Data Capture, the Bank can also integrate data real time from any of its regional back-end systems. A recent example of leveraging this new capability was the integration of a second core banking system that offers foreign currency banking accounts to business clients. This real-time aggregation capability will continue to enable the organization to deliver new services, such as offering real-time global account views to multinational corporations as well as new business intelligence reporting services.

For more informationTo learn more about IBM information integration solutions, please contact your IBM sales representative or IBM Business Partner, or visit the following website: ibm.com/software/data/infosphere

To increase the business value of your IBM InfoSphere software, participate in an on-line community. Learn about opportunities at: ibm.com/software/data/infosphere/community

For more information about Scotiabank, visit: www.scotiabank.com

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