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Drivers for SOA in the Transaction Banking Domain
Sriram Anand,
Principal Researcher
Web Services Center of Excellence,
Infosys Technologies, Ltd.
Jayakumar Venkataraman
Principal Consultant
Banking Domain Competency Group,
Infosys Technologies, Ltd.
Abstract In a competitive business landscape, banks are under pressure to innovate, improvise and differentiate their products
and services while continuing to reduce the time-to-market for new product introductions. The rise of new
businesses and newer ways of doing existing businesses has significantly influenced the need for a better assessment
of the business value realized from the IT investments. Client Relationship managers, Product managers etc are
facing the need to be innovative and flexible in their offerings to the client and they demand an agile delivery
infrastructure (process & IT) to support them in this regard. In banks operating multiple lines of businesses,
generating a Single view of the customer is a critical both from a marketing perspective as well as Risk Management
perspective.
For a CIO buffeted with such varied demands, the search is on for a solution that can help him address these
demands. The problems facing the CIO typically are:
a) Integration – How to integrate the gamut of legacy systems & modern technologies; packaged
applications to custom built systems and multiple internal / external stakeholders.
b) Future proofing IT Investments – How to ensure that IT investments of today will continue to be
relevant and useful in the coming years
c) Agility of IT infrastructure – How to transform the current ponderous IT infrastructure to an agile
infrastructure in sync with business demands for flexibility
Therefore, keeping in mind the business and technology requirements in this domain, SOA may be appropriate
given some sample business drivers such as:
• Cross-Border Cash Management: Most global banks offer global cash management solutions that involve cross-
border payments and receipts for their corporate customers.
• Globalization of Cash Management Functions: Banks have embarked on centralizing their global cash
management operations into a few regional processing centers located strategically in various locations to
provide round the clock transaction processing capability.
• Time to market for new products: Banks are constantly looking for ways to innovate on their cash management
offerings and reduce time to market for new products by leveraging existing infrastructure.
• Reduced redundancy in IT infrastructure: By promoting common IT functionality available as a service to be
accessed by multiple applications across LOBs, geographies, and external partners, there is a significant cost
saving.
• Straight Through Processing (STP): The need for STP in cash management has been highlighted keeping in
view the need to reduce duplicate data entry, manual handoffs between activities in cash management
processes, to reduce errors in data handling, and to increase the end-to-end automation of business processes.
• Unified View of data: The need for accurate, real-time information from various information sources is essential
for regulatory compliance and to provide a unified view of information (e.g. customer).
• Multi-Channel capabilities: Driven by the exploding market for cell phones and PDAs especially in developing
countries, multi-channel information architecture is imperative for today’s anytime anywhere banking
requirements.
Given these drivers, it is imperative to develop a comprehensive SOA strategy for the banking domain that is driven
by the business process and can provide flexibility, open standards and loose coupling. This presentation covers the
specific applicability of a service based model to the transaction banking space and prescribes reference architecture
for this domain.
Keywords
IEEE International Conference on Services Computing (SCC'06)0-7695-2670-5/06 $20.00 © 2006
Service-Oriented Architecture (SOA), Transaction Banking, Legacy System Integration, Globalization, Web
Services, One View of Customer Data.
About the authors
Sriram Anand is a Principal Researcher at Infosys Technologies, Bangalore. Prior to joining Infosys, Sriram worked
in IT consulting as well as product engineering in the US for over 12 years. His interests include enterprise
architecture, service-oriented architecture, and legacy integration and software engineering methodologies. Sriram is
experienced in designing enterprise architectural strategy for leading U.S. companies in the financial services, retail
and pharmaceutical domains. Sriram holds a Bachelor’s degree from IIT-Madras with a Ph. D. from SUNY-Buffalo,
USA.
Jayakumar Venkataraman is a Principal Consultant with the Banking Domain Competency Group at Infosys
Technologies Ltd. He has over 12 years of experience in the banking and IT industry. Mr. Venkataraman has
worked in Citibank, American Express Bank and BNP Paribas in the areas of Commercial and Transaction banking.
At Infosys, Mr. Venkataraman focuses his research work on Basel II, Risk Management and SOA implementation
issues in the banking industry. Mr. Venkataraman has published a number of articles in reputed journals and has
participated as a speaker at international conferences.
IEEE International Conference on Services Computing (SCC'06)0-7695-2670-5/06 $20.00 © 2006
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