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
BankProducts
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 FulfillmentEnablers
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REGULATORY BODIES
BANK1. 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
cess
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
BankingCustomer
Types
Transaction
FulfillmentEnablers
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 for
Technology & 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 HubChannel Integration
Retail Core Banking
Corporate Core Banking
Trade General Ledger
Treasury
Retail Internet Banking
Corporate Internet Banking
Retail Mobile Banking
Branch Teller
ATM
Ch
an
ne
lsC
ore
Ba
nkin
g
Syste
ms
En
terp
rise
Pla
tfo
rms
SMU tBank Retail Channels
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Retail Internet Banking
Retail Mobile Banking
Branch Teller
ATM
Customer� Account Opening� PIN Creation� Credit EvaluationAccounts� CASA� Term Deposit� Home Loan� Auto Loan� Education LoanTransactions� 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 StatementTransactions� Setup Beneficiaries� Fund Transfer� Standing Instruction� Bill Payment� Transaction History� RM SchedulerReal-time Offers� Merchant Discounts� Bank Products
Platforms Supported� iOS� Android
TransactionsSame as Internet Banking plus
the following:
� QuikPayPerson to Person Fund
Transfer using Near-Field-
Communication
Real-time OffersSame 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 EndpointsSOAP/HTTP or SOAP/JMS
JMS
JMSJMSJMS
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
28/8/201412
• 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 in the Classroom
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Retail Banking – Students use SMU tBank to learn banking processes such
as; account opening, credit evaluation, loan repayments, fund transfers,
foreign exchange, standing instructions, GIRO, mobile payments, Two-Factor-
Authentication, ATM network management, real-time customer specific
promotion offers. Lab questions assess the students understanding of both
bank processes as well as financial accounting.
Enterprise Integration – Students use SMU tBank to learn integration
technologies such as; Message-Oriented-Middleware, and Service-Oriented-
Architecture. Labs exercises include; building integration components that
allow different applications in the bank to communicate, and drill-down
visualizations of what is actually happen in the integration layer when a fund
transfer is executed, for example.
Architectural Analysis – Students will use a “lite” version of SMU tBank
which is deployed on their laptops, to demonstrate their understanding of 3
main architecture principles; “resiliency” (ability to failover to a standby
system), “concurrency” (handling large number of users), and “performance”
(response time of the application).
SMU tBank Research Areas
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Enterprise Architecture in Banking – Covers EA best practices in a banking
context; alignment to business strategy, EA frameworks and tools, banking
industry information models, enterprise platforms (SOA, BPM, BRMS, MDM,
EDW), EA principles and design patterns, EA blueprints and roadmaps.
Covers the adoption of the Banking Industry Architecture Network (BIAN)
Service Landscape to inform and optimize the decomposition of banking
processes into reusable services. Case studies on EA practices in banking.
Case study on SMU tBank.
In-Memory Data Grid Use Cases in Banking – Covers performance
improvements of data caching, eg; characterization of response times with and
without a data cache in front of the core banking system, and the resulting
impact on customer satisfaction. Also covers the economics of caching data in
front of the core banking system, eg; the cost saving in MIPS incurred on
mainframe systems. Covers how massive-scale in-memory data grid
technology is used to enable real-time cross-sell to banking customers, eg;
next best offers pending in memory, triggered on the next customer interaction.
Covers real-time fraud detection.
SMU tBank Research Areas (cont.)
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Core Banking System Replacement – Covers the scenario where a core
banking system is replaced, eg; Oracle Flexcube is replaced with Infosys
Finacle. The transition from one system to the other can be done with
minimum impact to banking channel applications, by using a flexible service
oriented architecture. Using SMU tBank as a test bed, specific scenarios can
be trialed in conjunction with actual banks in Singapore that want to participate
in the study.
Bank Mergers: Technology Migration or Coexistence – Covers the
scenario whereby one bank acquires another, and the combined bank needs
to make decisions about which technology to keep or discard, and which
technologies can coexist. The coexistence of different technologies across the
two banks can be achieved with minimal impact to banking channels, by using
a flexible enterprise platforms such as; SOA, BPM, BRMS, and MDM. Using
SMU tBank as a test bed, specific scenarios can be trialed in conjunction with
actual banks in Singapore that want to participate in the study.
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
28/8/201422
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
SMU tBank on the Cloud
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• Our long term plan is to deploy SMU tBankonto the cloud, and open it up for use by other Universities.
University
A
University
B
University
C
SMU tBank
Ngee Ann Poly,
starting Oct 2014
Singapore Poly,
(TBD)
Thank You
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