applications architecture and_business_rules

KPMG

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Information Technology Applications Architecture

China Construction Bank

Information Technology Applications Architecture15/05/2002

2 China Construction Bank

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Introduction

This document sets out the application architecture for the Bank resulting from the review of the IT Research project. It covers the following two main systems:

Continued implementation of the CCBS system as a multi province and potential multi currency system. The system is currently a single province application,

Implementation of a multi layered data warehousing solution to meet the Bank’s management information needs

Other systems have not been assessed alongside these because these represent the significant areas for change in the Bank’s main application architecture. The architecture is represented as is today followed by an interim development with the new core systems configuration and an initial implementation of the data warehousing solution. The full architecture is represented by the core system supported by a full data warehousing implementation. On each slide the light coloured systems are those that have been newly implemented at that stage of development

In addition, a section ahs been included showing the main areas of an applications architecture which KPMG would expect to see as a multi layered solution as is being proposed for the core banking reengineering. As part of this we have included the main business rules around the interaction between such layers.



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CCB’s Applications Architecture Transition



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Current Architecture (Shanghai Province)

Processing ManagementSystems Information

Systems

Cus

tom

er

info

rmat

ion

Sec

urity

Acc

ount

s

Loa

ns

Sav

ings

Pay

men

ts

Local systems

Point of sale

Automated teller machine


Point of sale terminal

Securities transfer

Web Server

Card organisations

Local Settlement

External gateways

Counter TopTerminals

Centre

Province

Local

Call centres

Web Server

Card organisations

Local Settlement

External gateways and front ends

Front end database



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Interim Architecture

Centre

Province

Local


SystemsC

usto

mer

in

form

atio

n

Sec

urity

Acc

ount

s

Loa

ns

Sav

ings

Pay

men

ts

Local systems

Point of sale




SNA Communications

Transaction transfer

Data formatting

Call centres

Web Server

Card organisations

Local Settlement


Big Front End

Small FrontEnd


Line ofbusinessdata marts

On line Analytical Processing



On lineAnalytical Processing

In the interim management information is providedeither within a province or at province and Head Office for one line of business

Head Officeline ofbusinessdata mart

CCBS database

Securities transfer

Web Server

Card organisations

Local Settlement

External gateways

Front end database

Front end database

Province baseddata

extraction

Province baseddata

extraction



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Full Architecture

Centre

Province

Local


Systems


Summary Head Officedata mart




Head Officeline ofbusinessdata mart



Management information is either grouped by province and then consolidated into one head office system or by line of business and consolidated by line of business at Head Office. Both options are shown here

Cus

tom

er

info

rmat

ion

Sec

urity

Acc

ount

s

Loa

ns

Sav

ings

Pay

men

ts

Local systems

Point of sale




SNA Communications

Transaction transfer

Data formatting

Call centres

Web Server

Card organisations

Local Settlement


Big Front End

Small FrontEnd

CCBS database

Securities transfer

Web Server

Card organisations

Local Settlement

External gateways

Front end database

Front end database

Province baseddata

extraction

Province baseddata

extraction




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Applications architecture

-

Locations



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Channel Management Layer (central or distributed)

EnterpriseManagement

Systems (central)

PartnerManagement

Systems(central)

CustomerAnalytics

Marketing & MIS(central)

OperationalCustomer

Management(central)

Channel Layer (central or distributed)

Business Integration Layer (central)

Production Engine Layer (central)

Mailing & Payment Gateways (central)

The best practice applications architecture will have the layers located as follows



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Channel Management Layer (distributed at province level)


Systems (distributed and central)

PartnerManagement

Systems(does not exist)

CustomerAnalytics

Marketing & MIS(does not exist)

OperationalCustomer

Management(distributed

where it exists)

Channel Layer (distributed)

Business Integration Layer (does not exist)

Production Engine Layer (distributed at province and City level)

Mailing & Payment Gateways (distributed)

CCB’s current practice applications architecture has the layers located as follows



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Channel Management Layer (distributed at province level)


Systems (central)

PartnerManagement

Systems(not needed in

the short to medium term)

CustomerAnalytics

Marketing & MIS(central)

OperationalCustomer

Management(central)

Channel Layer (central or distributed)

Business Integration Layer (distributed at province level)

Production Engine Layer (central and distributed)

Mailing & Payment Gateways (central)

CCB’s likley applications architecture will have the layers located as follows



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Applications architecture

-

Rules for managing the application layers



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From an applications architecture perspective the architecture is divided into layers ….

Channel Management Layer


Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer

Business Integration Layer

Production Engine Layer

Mailing & Payment Gateways



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The application layers can then be exploded to show application components...

Customer Interaction Layer

Workflow

Service Management Fulfilment Management Complaints Management Sales Support

Quotations RecommendationsApplications Capture

Common Processes

Product Bundling and Branding

Banking Engines Other FS Engines

Presentation

Personalisation

Distribution Channel Integration

Channel Management

ContentRepository

Web Page Design Content Management

Credit ReferenceBureau

CardProduction

LoansCurrent

Accounts

DepositsCreditCards

Mortgages

LifeInsurance

RetailBrokerage

WealthManagement

FX/TravelCheques

GeneralInsurance

AccountData

Leasing

Credit Ref./Scorecard

FraudDetection

Applications

CollectionsArrears Mgt.

3rd party debt collection

HPI

OtherBanks

Enterprise ManagementSystems

GL

RegulatoryReporting

AccountsPayable

PurchaseOrdering

HR/Payroll

TransactionReconciliation

StockControl

Treasury

RiskManagement

CommissionManagement Fixed

Assets

e-purchasing

CorporateData

Admin.

BrandM.I. & B.I.S.

Partner Management Systems

Finance.

Relation.

BusinessRisk

PartnerData


BACS

CHAPS

CHAPS euroEBA

SET Switch Swift

RemittanceProcessing

AUDDIS/ADDACS

Mailing Fulfilment StatementingChequeProduction

ChequeClearing

High Street

DetailData

Finance Customer Product Channel

Analytic Databases

BehaviouralAnalysis

CustomerValue

Analysis

CampaignManagement

PersonalisationDevelopment

Householding Cross-Selling

Customer AnalyticsMarketing & MIS

OperationalCustomer Database

CustomerProfile

CustomerAuthentication

RiskManagement

TreatmentStrategies

ContactManagement

RelationshipManagement

Operational CustomerManagement

PC

Prop

riety

PC

OF

X

Internet

E-m

ail

WA

P P

hon

e

I-TV

Othe

r(- e

g, PD

A, K

iosk)

AV

R

IVR

CT

I

Script

Vide

o

ACD

Fa

x

Tra

d AT

M

e - channels Call Centre Supporting Channels

Po

stal

Bran

ch

Re

tail

Ou

tlet

Channels

Directory ServicesMessaging Security FTP WorkflowRules

Engine

DataTransformation

DataAggregation

DataSplitting

Directory ServicesMessageRepair

AuditTrail

Flow Control

QueuingInvocation of

RT/batch functs.Look-upTables

DirectoryServices

Prioritisation


High Street

Internet

Suppliers



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Channel to Channel Management layerInteraction Rules

• Channel systems send enquiries and transactions only to specified systems in the channel management layer

• Channel systems have a valid subset of business transaction types which they can deal with e.g. internet channels cannot deal with notes and coins

• A subset of customer and account enquiries are valid for each channel layer system e.g. ATMs cannot enquire directly on customer records



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Channel Management to Business Integration Layer

Interaction rules

• All transactions pass through a switch between the layers

• All transactions have the following stamped on them:

•Time •Date•Source system•Target system•Processing priority, e.g. interactive, request, memo posting, batch•Valid security access to create, read, update and delete

• All transactions have business rules applied in this layer for the following:

•Categorisation for information retrieval e.g. customer type, product type, channel type, time period,geographical source •Supplementary data to be added to the transaction depending on the transaction type•Rules to be applied to the transaction to create aggregated totals for further analysis

• Transaction record is complete with the following action:

•If yes which system to pass it to•If no which system to pass it back to or what repair algorithms to apply



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Operational Customer Management to Business Integration Layer

Interaction rules:

• All customer related transactions passed to Operational Customer Management

• Customer authentication requested directed to Customer Authentication

• All customer transactions update Operational Customer Database

• Operational Customer Database (OCD)) updates other systems in Operational Customer Management depending on predefined rules held in the OCD



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Business Integration to Customer Analytics Marketing & MIS layer

Interaction rules:

• All customer related transactions passed to Detail Database

• All customer transactions update Detail Database in

•summary customer record or •individual customer record•both

• Customer Analytics Marketing & MIS sends outbound transaction to Business Integration Layer driven by predefined prompts held in each system in that area. Target system details for that type of transaction are held in the Business Integration layer



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Business Integration to Production Engine layer

Interaction rules:

• Business Integration Layer directs inbound transaction to relevant product system in the Production Engine Layer driven by predefined look up table. The rules for this will be driven by:

•Valid transaction type•Time of day, (production engine systems may be running batch updates and the rule will switch to a shadow data file not the main transactional file

• Business Integration layer will store a record of the transaction to match to the response transaction to ensure that a reply is received and processed

• changes to customer records held in the Production Engine Layer can only be done via the Business Integration Layer thus maintaining a record of inbound transaction updates only, no direct update of accounts is valid



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Production Engine Layer to Mailing & Payments Gateways

Interaction rule:

• Valid transaction types generate a subset of payment types or other types of transaction driven by a look up table e. g. a domestic payment will not be valid for a SWIFT transaction or a payment below a specified amount will not be valid for a real time gross settlement system

• Payment messages will require and authentication message before Production Engine Layer systems are updated with the transaction

• Payment messages will update different balances e. g. cleared or uncleared depending on the payment type

• Incomplete inbound payment messages held in suspense accounts in the Mailing & Payment Gateway before manual intervention

• changes to customer or third party payment records held in the Mailing & Payments Gateway can only be done via the Production Engine ion Layer thus maintaining a record of inbound transaction updates only, no direct update of records is valid



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Business Integration Layer to Partner Management Systems

Interaction rules:

• Certain transaction will known to be third party sourced system transactions from transaction tables held in the Business Integration Layer

• In and outbound transactions between layers will generate or receive receipt messages depending on

•the transaction value or•The transaction amount In either•In real time•As part of a periodic batch update

• Firewall principles apply for invalid or incomplete messages

• changes to customer or third party records held in the Partner Management Systems can only be done via the Business Integration Layer thus maintaining a record of inbound transaction updates only, no direct update of accounts is valid



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Systems

PartnerManagement

Systems

CustomerAnalytics

Marketing & MIS

OperationalCustomer

Management

Channel Layer




Business Integration layer to Enterprise Management Systems

Interaction rules:

• A subset of transaction (i.e. financial transactions and transactions which update management reports) will be passed from the Business Integration Layer to the Enterprise Management layer

• Control totals will be created for sent and received transactions to valid receipt.

• Transaction flow is one way i.e to Enterprise Management only except for payroll which roots via the Production Engine to the Payment Gateway or updates Production Engine customer accounts

• changes to account records held in the Enterprise Management Systems can only be done via the Business Integration Layer thus maintaining a record of inbound transaction updates only, no direct update of accounts is valid



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Business transactions which are used between layers

///////Product mandate

/////Financial transaction links

///////Staff links

///////Organisation links

///////Product links

///////Product application links

///////Customer links

///////Staff member

/////Interest computation

/////Fee computation

////Financial transaction

///////Organisation unit

///////Product holding

///////Product application

///////Customer

undeletedeletereverse update

updatereadUn createcreateType of action

Transaction group