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

2

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.

3

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

5

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

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

Fulfillment

Enablers

6

REGULATORY BODIES

BANK 1. 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

ce

ss

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

7

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

Banking

Customer

Types

Transaction

Fulfillment

Enablers

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 forTechnology & 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)

8

Enterprise Service Bus

MDM BRMS CMS ODS

Payment Services Hub Channel Integration

Retail

Core

Banking

Corporate

Core

Banking

Trade General

Ledger

Treasury

Retail

Internet

Banking

Corporate

Internet

Banking

Retail

Mobile

Banking

Branch

Teller

ATM

Channels

C

ore

Bankin

g

Syste

ms

Ente

rpri

se P

latf

orm

s

SMU tBank Retail Channels

9

Retail

Internet

Banking

Retail

Mobile

Banking

Branch

Teller

ATM

Customer

Account Opening

PIN Creation

Credit Evaluation

Accounts

CASA

Term Deposit

Home Loan

Auto Loan

Education Loan

Transactions

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 Statement

Transactions

Setup Beneficiaries

Fund Transfer

Standing Instruction

Bill Payment

Transaction History

RM Scheduler

Real-time Offers

Merchant Discounts

Bank Products

Platforms Supported

iOS

Android

Transactions Same as Internet Banking plus

the following:

QuikPay Person to Person Fund

Transfer using Near-Field-

Communication

Real-time Offers Same 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 Endpoints

SOAP/HTTP or SOAP/JMS

JMS

JMS JMS JMS

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

25/2/2014 12

• 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

14

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

16

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

17

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 on the Cloud

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• Our long term plan is to deploy SMU tBank

onto the cloud, and open it up for use by

other Universities.

University

A

University

B

University

C

SMU tBank

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

25/2/2014 20

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

22

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

Thank You

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