Banking Industry Framework Industry solutions for a Smarter Bank
Henrik Koch, Industry Solutions Executive, IBM Software Group
Agenda
1. Introducing IBM Industry Framework for Banking• The market demand for Banking Industry Frameworks • Definitions and key benefits
2. Industry Framework and Industry Solutions for Banking • Corebanking Modernisation• Payments and Securities• Customer care & Insight• Integrated Risk• Financial Markets Framework
3. Closing remarks • Where to get new collateral and information• Who to contact• Questions
Agenda
1. Introducing IBM Industry Framework for Banking• The market demand for Banking Industry Frameworks • Definitions and key benefits
2. Industry Framework and Industry Solutions for Banking • Corebanking Modernisation• Payments and Securities• Customer care & Insight• Integrated Risk• Financial Markets Framework
3. Closing remarks • Where to get new collateral and information• Who to contact• Questions
Clients value IBM's ability to deliver integrated solutions Client buying behaviors are shifting: Customers are looking for their business commitments to be met at market speed, or better
Managing project costs into bite-sized bits is now a requirement
Customers want to utilize the technology that best supports their strategy, independent of vendor
Our Strategy: Combine industry assets and best practices into offerings focused
on core and connected business problems
Design for re-use
Incubate an ecosystem of industry ISVs, pre-integrate
Be prescriptive about a platform, emphasize best practices, better utilize our industry expertise
Lev
el o
f ad
op
tio
n
Representative Industries
ElectronicsChemicals & Petroleum
High-Tech ManufacturingAutomotive
BankingHealthcare
GovernmentFinancial Markets
InsuranceMedia & Entertainment
Representative Industries
Today Future
Custom (Legacy) Environment Integrated Solutions ISV-dominated Environment
Client buying behaviors are shifting towards an integrated solution which combines existing assets and new of the shelf-services
The market has requested: More standardised solutions, easy to integrate and more service oriented
With a framework approach, organisations can progressively transform to a more simplified, strategic infrastructure
Achieve a simplified and agile strategic infrastructure
3
Pick a framework project and start rationalizing to deliver a quick ROI1
Build on the value of previous projects and reuse assets2
Increasing reuse and business agility along the way!
IBM Industry Frameworks - deliver the full power of IBM software to industry solutions
The frameworks create a more agile foundation for future growth
Serv ers, storage, communication networks and associated serv ices
Value Add P rocess m od els & flows
In form ation m od els
Desig n tem p lates
Re-u sab le cod e assets
In d u stry stan d ard s
Com m on services
Industry spec ific cha llenges, market drivers , shifts & trends
Industry and subjec t matter expertiseApplica tions and too ls
Strategic Business Drivers
Industry Solutions
In tegrated on IB M m iddlewareIndustry Frameworks
Fram eworks deliver technology in an industry context, aligning IT to business needs
Industry Solutions
Commerce
B2B &Commerce
EnterpriseContent Management
Enterprise Marketing Management
Industry
Order management Optimization & logistics
Commerce
Marketing Process & Demand Generation Solutions
Industry Frameworks& Industry Assets
Essential Content Advanced Case Mgmt Content Analytics Information Lifecycle
Including:Energy and Utilities Retail Government/Defense Manufacturing Health Integration Media
Physical Meets Digital Customer Care & Insight Workforce Optimization Financial Transaction Management Financial Operations IBM Payments Director IBM Electronic Payments Platform
Industry Solutions Structure
IBM Banking Industry Framework
Information
Insight
Financial Risk
Financial Crimes
Governance & Compliance
Operational & IT risk
InteractionPayments Transaction Platform
Consumer Payments
Commercial Payments
Compliance & Risk
Architecture Transformation
Application Modernization
Process Agility
A Foundation for a Smarter Bank: Actionable Innovation
Speed solution deployment with foundational and domain-specific software extensions and accelerators
IBM Banking Industry Framework
IBM industry solutions
Integrated Risk Management
Information FrameWork (IFW) & Banking Data Warehouse (BDW)
Process and Data Models
IBM
Fou
ndat
iona
l
Cor
e B
anki
ng T
rans
form
atio
n
COGNOS Banking Performance
Blueprints
COGNOS Banking Risk Performance – Credit Risk
Entity Analytics and Global Name Recognition
Finance and Integrated Risk Management (FIRM)
COGNOS Risk Adjusted Profitability Blueprint
Inte
grat
ed R
isk
Man
agem
ent
SOA Banking Scenarios
Pay
men
ts &
Sec
uriti
es
WTX Industry PacksEPP Assets
pureXMLTM Payments Bundles
WebSphere BI for FN
Corporate Payments Scenario
Solution Templates
Banking Vocabulary
Design Rules
Banking Message Model
Cus
tom
er C
are
& In
sigh
t
COGNOS Banking Performance Blueprints
Customer Identification Solution
Common Business Language Services Accelerator
Banking Data Integration Accelerators
WebSphere Multichannel Bank Transformation Toolkit
Account Opening Scenario
Common Shared ServicesBanking Extensions for MDM Server
Services Component Building Blocks
Reference Payments Services Interfaces
Timer
Services
State
Engine
Payments Objects User Interface
Flow Coordinator
Development Tools / Methodology
WebSphere Modeler with IFW
Rational Software Architect with IFWWebSphere Banking
Content Pack
IBM Service Management for IRM
Theme 4: Acquisitions expand business value
Banking Industry Framework – Themes behind V2
IT Systemsand Operations
Merchandisingand ProductManagement
Store andChannels
Theme 2: Shaped by industry software strategies and capabilities
Theme 1: A more unified framework
Core Banking Transformation
CustomerCare andInsight
Payments & Transaction
Services
Integrated Risk
Management
IBM DYNAMIC INFRASTRUCTURE
IBM SOFTWARE FOUNDATION
ENGAGEMENT EXPERIENCES CUSTOMER POCS/FOAKS EARLY ADOPTERS INDUSTRY STANDARDS
METHOD & TOOL
METHOD & TOOL
ARCHITECTURE
ARCHITECTURE
ACCELERATORS
ACCELERATORS
INTEGRATION PLT
INTEGRATION PLT
IBM BANKING INDUSTRY FRAMEWORK
ISV & SI PARTNERS
SERVICES
ENABLEMENT
IBM DYNAMIC INFRASTRUCTURE
IBM SOFTWARE FOUNDATION
ENGAGEMENT EXPERIENCES CUSTOMER POCS/FOAKS EARLY ADOPTERS INDUSTRY STANDARDS
METHOD & TOOL
METHOD & TOOL
ARCHITECTURE
ARCHITECTURE
ACCELERATORS
ACCELERATORS
INTEGRATION PLT
INTEGRATION PLT
IBM BANKING INDUSTRY FRAMEWORK
IBM DYNAMIC INFRASTRUCTURE
IBM SOFTWARE FOUNDATION
ENGAGEMENT EXPERIENCES CUSTOMER POCS/FOAKS EARLY ADOPTERS INDUSTRY STANDARDS
METHOD & TOOL
METHOD & TOOL
ARCHITECTURE
ARCHITECTURE
ACCELERATORS
ACCELERATORS
INTEGRATION PLT
INTEGRATION PLT
IBM BANKING INDUSTRY FRAMEWORK
ISV & SI PARTNERS
SERVICES
ENABLEMENT
ISV & SI PARTNERS
SERVICES
ENABLEMENT
Head of Retail Banking
Head of Retail Banking
Chief Marketing Officer (CMO)
Ind
us
try S
olu
tio
ns G
rou
p
Advanced Case Mgmt
Workforce Optimization
Financial Operations
Smarter Commerce
Customer Care & Insight
Smarter Physical Infra
Priority IndustriesPriority IndustriesS&D and GBS AlignmentS&D and GBS AlignmentPriority Industries
E&U Retail Health Telco Govt O&G Banking Electr Transport
Ind
us
try S
olu
tio
ns G
rou
p
Advanced Case Mgmt
Workforce Optimization
Financial Operations
Smarter Commerce
Customer Care & Insight
Smarter Physical Infra
Priority IndustriesPriority IndustriesS&D and GBS AlignmentS&D and GBS AlignmentPriority Industries
Ind
us
try S
olu
tio
ns G
rou
p
Advanced Case Mgmt
Workforce Optimization
Financial Operations
Smarter Commerce
Customer Care & Insight
Smarter Physical Infra
Priority IndustriesPriority IndustriesS&D and GBS AlignmentS&D and GBS AlignmentPriority Industries
E&U Retail Health Telco Govt O&G Banking Electr Transport
Theme 5: Tuned for LOB Buyer
Chief Risk OfficerChief Risk Officer
Theme 3: Incorporating key SW growth trends BAO
Banking Industry Framework BenefitsA Foundation for a Smarter Bank: Actionable Innovation
• Mitigate Risk (De-Risk)
• Accelerate & Expedite a Successful Implementation using accellerators and competency centers
• Reduce cost
• Future Proofing
• Backed up by IBM’s long term commitment to industry standards and R&D
Agenda
1. Introducing IBM Industry Framework for Banking• The market demand for Banking Industry Frameworks • Definitions and key benefits
2. Industry Framework and Industry Solutions for Banking • Corebanking Modernisation• Payments and Securities• Customer care & Insight• Integrated Risk• Financial Markets Framework
3. Closing remarks • Where to get new collateral and information• Who to contact• Questions
Model Driven Development Business process transformation Business rules and logic management Solution Template Driven Transformation Performance Monitoring
Legacy application modernization and renovation Develop next generation applications Replace legacy application with package solutions Data migration from legacy systems
Banking reference architecture Master data Management Process Integration Information Integration Infrastructure Management, Security & Scalability
SimplificationComponentization
IntegrationOptimizationCollaboration
SecurityResiliency
Process Agility
Application Modernization
Architecture Transformation
Core Banking Transformation
Banking Industry Framework - Core Banking Transformation Projects
Start transforming core banking capabilities with a framework Project
Improve profitability by expanding into new markets faster, bringing innovative products to market quickly, and differentiating pricing and terms for maximum customer satisfaction with flexible and efficient processes for account opening and management, product bundling, and dynamic relationship pricing
Architecture Transformation
Process Agility
Transition from existing core banking applications in a staged and modular way with near term payback and reduced risk and disruption; integrate best-of-breed application components, buy new packaged applications and integrate with enterprise systems, or build new SOA components for a customized, lower cost, and less risky approach
Application Modernization
Core Banking Transformation Project Areas
Transform your core banking platform, reduce operational cost and risk, and improve core banking process efficiency with projects addressing fundamental capabilities including a simplified IT infrastructure, platform scalability, enterprise-wide master data management for customer contract, and product data, and model driven development to build business service components
Business Partners
Content Validated on Framework
What are the key drivers for banks to modernize their core banking systems?
Technology Drivers
Product Innovation
Revenue GrowthRevenue Growth Efficiency ImprovementEfficiency Improvement
RegulationsRegulationsWorkforce OptimizationWorkforce
OptimizationArchitectural
SimplicityArchitectural
Simplicity
Drivers for Core Systems Modernization
M&A
Modularity SMEs Retiring Monitoring
Globalization
Operating Cost
Time To Market
Customer Centricity
Business Drivers
Regulatory Drivers
Enterprise LeverageEnterprise Leverage
Asset Rationalization Shared Services
SOA
ComplianceCompliance
Auditing ReportingFading Skills
Banks are looking at core systems modernization in response to specific business, technology and regulatory drivers
Solution Component Use: ‘Arrangement’ Service Model for Client Relationship and Offer Optimisation
BIS System Role
Development ExecuteAdvise ServiceMarketing Termination
2
IBM ILog Bus Rules Engine
Extract & Analyse 4
3
1
Group Business DevBusiness AdvisorsShared Service Center
IBM Industry Process & Service Models
3
BIS System & Product Factory Role
InfoSphere MDM Server for PIM
InfoSphere MDM ServerInfoSphere MDM Server
CRM Systems Use/Consolidate
Product Factory Role
InternetMobile Banking
MDM Server for PIM
IBM Master Data Management Product Portfolio
Collaborative Authoring Create Maintain Update Govern Deliver
MDM Domains
Business Services
Pre-built Customizable
Data Stewardship
Party Account Product Custom
Integration
Content Data Analytics
InfoSphere MDM Server
MDM Custom-Built Domains
Business Process workflow
NPI Multi-Commerce
Collaborative Authoring
Product Location Supplier Others
Catalog Mgt
InfoSphere MDM Server for PIM
19
Nordic BankFinancial Services
• Growth through mergers and acquisitions had created a bank with multiple lines of business and countries that were operating with different processes and systems.
• Needed to streamline business
Challenge
Solution
Benefits
A cross-enterprise transformation program that would ultimately streamline all business processes and integrate system
An IT platform totally adaptive to changing business needs, embracing SOA strategy and master data management
A cross-line of business customer view to continue to grow business and improve customer satisfaction
A MDM solution to enable cross-selling and up-selling, M&A integration, compliance (Basel II, MiFID) and operational efficiency
APPROVED FOR EXTERNAL USE
IBM® InfoSphere MDM Server IBM InfoSphere QualityStage IBM Rational Application Developer IBM InfoSphere MDM Server for PIM IBM WebSphere Application Server SWG Lab Services for implementation
CustomerCare andInsight
Core Banking Transformation
Payments andTransaction Services
Integrated Risk Management
Interaction
Insight
Information
Banking Industry Framework – Customer Care and Insight Projects
Multi-Channel Transformation Interactive Marketing Sales and Advisory Transformation Onboarding a nd Origination Optimization Customer Care and Servicing
Customer Analytics Business Performance Analytics
Single View of Customer Customer Data Warehouse
IntegrationOptimization
AnalyticsCollaboration
SecurityResiliency
Get started with a Customer Care and Insight project
Information
Insight
Interaction
Optimize marketing, sales and customer service processes; include single view of customer and deeper insight at the point of interaction across all channels
Transform multiple channels for improved customer experience, consistency across different channels, more engaging customer dialogs, and ultimately better business results
Understand customer data across all systems and build common customer data definitions
Integrate operational customer data to achieve a enterprise single customer view
Consolidate operational and historical customer data into a common data warehouse
Extract valuable customer insight such as segmentation, value, needs, behavior, etc. from the integrated customer data to help business retain and grow its customer base
Provide the business a real-time view of performance by channel, product, customer segments, geographies, campaign, etc.
CC&I capabilities are the foundation for all front-office projects
Customer Care and Insight Project Areas
Content Validated on Framework
Business Partners
REAL-TIME MARKETING software:
Presents personalized messages in real-time during inbound interactions
Personalization based on:– Existing customer data and new information gained during the
interaction– Or, behavioral targeting of anonymous visitors
Designed for easy deployment and management (“so easy a marketer can do it”)
Meets the most rigorous performance requirements. Up to:
– 1,000s of transactions per second– Half-second average response time
Interactive Marketing bringing science to the art of marketing Interactive
Marketing
Delivering personalized offers across channels in real time
turns inbound interactions into profitable communications
Business Need Outbound campaigns were ineffective – not taking advantage of
customer initiated interactions Needed to create a single, cross-channel, relationship with each
customer Disparate teams managed customer dialogs Needed to reduce marketing costs
Real Results• Relevant, real-time campaigns drive higher response rates
• 85M targeted offers served each day across 5 channels – direct mail, email, web, call center, and branches
• €20M increase in earnings expected• Lowered direct marketing cost 35%• Faster campaign cycle times: from 26 weeks per campaign to just 4 weeks
InteractiveMarketing
Mobile Web
...mobile Web applications or content for virtually any mobile device browser
Need
8,400 Devices
Solutions
Mobile Portal Accelerator
Portal Mobile Webkit Themes
Available today for iPhone
Coming soon for Android, Blackberry, iPad
...extend a Web experience to mobile devices for specific mobile browsers
..rapidly develop & deploy web & hybrid mobile applications that have a native smart phone, look and feel
..write once, run on many devices – tablets, kiosks, web, PDA and more
Web Experience Factory
- Portal Mobile Webkit Themes
- - WAS 8.0
- Dojo
- - Hybrid
Supporting smartphone and multi-channel application capabilities
Smartphones
WebSphere PortalWebSphere
Application Server
Tablets
DesktopBrowsers
Use one common set of tools, techniques, application code (models)...
...and generate applications for multiple clientdevices
WebSphere Experience Factory
...deploy to multipleplatforms...
Legacy(WS / REST)
Sharepoint(CMIS / REST)
CRM & SQL
IBM has a broad portfolio of Mobile Enablement offerings
Banking Industry Framework - Integrated Risk Management Projects
Compliance Information Lifecycle Management Corporate Governance and Internal Control Sales and Market Conduct Compliance Regulatory Compliance Prudential Compliance Collaboration for Legal and Compliance
Operational Risk Platform Comprehensive Security Control, Enforcement, Management Trusted Identity Management Configuration/Incident/Problem/Change/Release Management Continuous, comprehensive fault monitoring Data Protection Application Integrity and Security
Customer Screening and watch-list filtering Transaction monitoring for Suspicious Activity Case Management, Transaction blocking & Suspicious Activity
Reporting
Get Your Risk Data in Order Risk Insight and Control Real Time Risk Insight and Control Risk Optimization Risk Modeling and Scenario Analysis
Payments and Transaction Services
Governance and
Compliance
Operational and IT risk
FinancialRisk
FinancialCrimes
Core Banking Transformation
CustomerCare and
Insight
Integrated Risk Management
IntegrationOptimization
AnalyticsCollaboration
SecurityResiliency
Start small and grow with an Integrated Risk Management project
Financial Crimes
Operational & IT Risk
Governance & Compliance
Integrate disparate fraud platforms to move towards real-time and proactive monitoring and improve investigations
Leverage tools to identify fraudulent activity before it happens Automate fraud prevention to reduce costs
Enable monitoring of internal processes, people and systems for improve operational risk management
Implement early warning systems, IT and crises management processes and business recovery planning
Improve your ability to respond to regulatory scrutiny Accurately report risk exposure Standardize and automate compliance processes Get the flexibility to respond dynamically to changing regulatory requirements
Financial Risk
Connect market, credit counter-party and liquidity risk to business and finance information systems
Enable risk reporting across and at different levels of the enterprise to enable better risk decision-making
Integrated Risk Management Project Areas
Content Validated on Framework
Business Partners
Open Pages, Algorithmics, SPSS, Cognos, IFW, DB2
Flexible model leverages the strengths of leading technologies by adopting best of breed systems and processes
1. Consolidates alerts across channels2. Conducts cross-LOB analytics3. Automates, standardizes, and documents analysis and
investigation
Consolidated and integrated operational organization (where feasible) addresses customer-based alerts and enhances efficiency
Generates improved business intelligence for executives, benefiting tactical functions and enables strategic thinking
1. Implements top down policy based on organization risk tolerance
2. Consolidates accountability and direction of resources3. Prioritizes and manages initiatives4. Collaborates with other stakeholders to drive a safer
business
Integrated Financial Crimes Center of Excellence
Putting IBM’s Proposed Architecture into the Context of Our Recommended Target Operating Model Financial
Crimes
Solution OverviewFinancialCrimes
• Sanctions Screening and Transactions Filtering: A regulatory requirement to stop activity in real time financial transactions (wire activity) or to block opening an account, the sanctions list details the blocked entities and is updated daily.
• Know Your Customer: A regulatory requirement for better customer identification and knowledge at the account opening phase. Helps preventing possible threats of AML / Fraud.
• Enhanced Due Diligence for High-Risk Customers: For customers deemed to pose a high-risk, the financial institute “should consider” obtaining, both at account opening and throughout the relationship.
• Suspicious Behavior Monitoring (AML): A regulatory requirement to detect suspicious AML transaction patterns and report it to the central bank.
• Case Management: Investigation tools and case management to support multiple levels of review, investigation, approvals, filing, reporting of above cases.
• FACTA: A US regulatory requirement
31
Major North American BankFinancial Services
• Create robust, streamlined and scaleable infrastructure that provides an enterprise client view, impacts the quality of the enterprise data and enables the assessment of operational and credit risk
• Reduce IT costs• Build a consolidated reporting infrastructure supported by
a 360-degree view of customer
ChallengeBenefits
BASEL II and management reporting requirements satisfied within tight management timelines, while improving data quality using an enterprise data infrastructure
Used IBM Information FrameWork (IFW), Banking Data Warehouse (BDW) and InfoSphere™ MDM Server as focal points for information consolidation and governance of data across thirty systems.
The data models enabled development standard- ization and identified project reuse opportunities.
Used InfoSphere DataStage to form a common ETL hub for MDM Server and BDW to create a single view of customers across the enterprise and accurate data for satisfying Basel II, and management reporting requirements.
Solution
Channel Integration Banking data Warehouse Financial Network Gateways Managed File Transfers Bulk de-bulk, Transformation and Entry / Repair
Consumer Payments Check Processing Payments online Mobile Payments Low Value high volume (i.e., cards)
CustomerCare andInsight
Core Banking Transformation
Integrated Risk Management
Payments &Transaction Services
Banking Framework for Payments and Transaction Services Projects
Commercial Payments
High Value low volume Cross border Corporate services / Payment factory / Cash Management
Payments transaction Platform
CARD / Durbin / Regulation E (US based), Basel III, PSD, SEPA Payment Transparency, Liquidity,, AML, CTF, Embargo Check, Adaptive Risk / Regulation capableCompliance and Risk
Process, manage, measure and monitor high volume low value payments from individual consumers including check / check images, online payments, mobile or smart phone payments; digital signatures for online applications, and payments from credit / debit cards, ATMs, etc.
Payments Transaction Platform
Restructure payments operations to comply with regulations and schemes: e.g. SEPA Direct Debit, SEPA Credit Transfer, card regulations, payments reporting and transparency, liquidity, AML, CTF, and embargo check. Adapts to address new risks and regulations
Consumer Payments
Integrated, horizontal, and reusable payments and treasury capabilities relevant across all payment products within a bank. Core payment processing functions and integrated toolset. Transaction warehouse and analytics for all LOBs
Commercial Payments
project areas
Process payments, serve corporate customers and manage internal treasury services; manage payments bank to bank, bank to clearing house or central bank, or country to country
Compliance and Risk
Business Partners
Content Validated on Framework
Payments and transaction services projects – address business needs across the enterprise
Financial Transaction Manager in Payments Transaction Platform
IBM FTM in payments transaction platform projects:
Provides the common integration capabilities to be reused for managing financial transactions
Built on the industry standard of ISO 20022 that aids the integration with new and existing back-office processing
Creates a commonly defined runtime environment which standardized integration to regulatory, checking, AML, reporting, and other needs
Operational database holds status and integrates with enterprise data management solutions for archival
Sample processes on which to build include SWIFTNet Funds, corporate payments and others – allowing a standard definition for orchestration
"We've chosen ... the adoption of SOA into the core of our business. It’s given us a clear advantage in the kinds of attributes ... to excel –speed, flexibility and efficiency.“
-- Wells Fargo
IBM
3rd Party
Legend
Risk & Regulation
PaymentSchemes &Types
Gateway Adapters
Origination SystemsFinancial Business
Solutions
Invo
ice
Pre
sen
tme
nt
OF
AC
An
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La
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AC
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NA
CH
A
Ch
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Cre
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& D
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Co
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Financial Transaction Manager
Gateway ServicesGateway Services
Network Adapters
System Adapters
Financial Transactions IntegrationFinancial Transactions IntegrationMessage
mapping & Validation
ChannelManagement
Monitoring & Logging
Transaction Warehouse
Reporting & Dashboards
LifecycleManagement
Core ServicesCore ServicesObject Model
Interface Data ModelFlow CoordinatorPrinting & Validation
Customer Profile Management, Security, Auditing
State Engine Configuration
E-C
om
me
rce
InternalBanking Systems
CorporatePaymentSystems
ExternalPaymentNetworks
ConsumerChannels
NO
ST
RO
Tra
de
Fin
an
ce
Glo
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bu
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me
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Tra
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Mo
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Financial Transaction Manager -- direction
IBM Confidential
Smarter Business Outcomes• Ability to accommodate payments network / gateway changes without costly changes to back-
end applications• Enhanced monitoring of payments processes• Transparent payments rules that business users can comprehend; rules can be changed in
hours or days vs. weeks or months
Client Challenges• The bank needed a payments message hub that
could send and receive SEPA Credit Transfers from the European Bankers Association
Solution• Implemented a payments mediation, monitoring and
management infrastructure across the DnB NOR SEPA payments business
• The solution has a base common product with industry specific SEPA processing engine
Project Use Case – DnB NOR
37
How we can help: Sterling Integrator in banking
Content-based routing
Translation
MailboxBulking / de-bulking
Business rules processing
Validation
Websphere MQ
SAP
Connect:Direct
Back officeFile system
SWIFT
NACHA
Domestic
Standards librariesVisibility
EBA STEP2
SWIFT
NACHA
Domestic
TARGET2
TSU
April 12, 2023
38
Content-based routing
Translation
MailboxBulking / de-bulking
Business rules processing
Validation
Websphere MQ
SAP
Connect:DirectR
TGS
Back officeFile system
SWIFT
NACHA
Domestic
Standards librariesVisibility
EBA STEP2
SWIFT
NACHA
Domestic
TARGET2
TSU
Sterling Integrator – Features
Community Management• Registration and activation• Change management• Self service • Support
Secure Exchange• Perimeter security• Authentication & encryption• Mail boxing
Translation and Integration• Adapters• Mapping• Financial services standards• Translation services
Process Automation• Process modelling• File and message routing• Automated exception handling
Visibility Management• Monitoring and management• Notifications and alerts• Audit and reporting
Banking Framework for Payments and Securities – Nordic Reference examples
Customer name Value proposition Solution content PlatformDansk Bank Solution for SWIFT and Peyments Gateway WBI FN DB2, WAS, MQSeries
Websphere Message broker SW Services and PMZ/OS
DnB NOR Solution for SEPA Credit Transfer and Corporate B2B Payments Liquidity Manager
EPP using DB2, WAS, MQSeriesWebsphere Message broker, SW Services and PM
Z/OS
DnB NOR SWIFT Gateway Merva Using WBI FN at EDB BP
Z/OS
EDB BP SWIFT Gateway WBI FN Z/OS
VPS Solution for Funds and new SWTFT formats for securities
EPP using DB2, WAS, MQSeriesWebsphere Message broker,SW Services
Intel
VP Solution for Funds and new SWTFT formats for securities
EPP using DB2, WAS, MQSeriesWebsphere Message Broker, SW Services
Z/OS
Swedbank Solution for Funds and new SWTFT formats for securities
EPP using DB2, WAS, MQSeriesWebsphere Message Broker, SW Services
UNIX
WebSphere BI for FN – Structure
BusinessApplication
SWIFTAlliance Gateway (SAG)
DB
2,
We
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MQ
, W
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Sp
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Se
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Accounting
Timer Service
WebSphere Message Broker
Message ManagementMessage Entry and Repair GUI, Printing, Routing, …
Messaging Servicesfor SWIFTNet InterAct and FileAct
WebSphere BI for FN V3.1.1
FIN
FinancialMessageTransfer
Centralized Operating
Configuration
Security / Access Control
Event handling
Monitoring
Auditing
Message Warehouse
SAG AddOn
Message Validation
WebSphere BI for FN - Base
Financial Transaction ManagerData model, message model, state machine, configuration and administrative interface, …
RelationshipManagementApplication
New
IBM Financial Markets Framework
Buy SideSell Side
Financial Risk Management
BackOffice
Risk
Market Data Solution *
Algorithmic Trading *
Portfolio Optimization and Trade Analytics
Trade Process Transformation
Market Infrastructure
Risk
Next Generation Trading Infrastructure *
Market Surveillance and Trade Monitoring
Post Trade Infrastructure
Settlement Risk Management
BackOffice
Risk
BackOffice
Risk
FrontOffice
Front Office
* Project includes WebSphere Front Office
Execution Strategy and Order Routing
GatewayGateway
WebSphere MQ Low Latency Messaging
Market Data Distribution
Feed Handlers
Platform
eXtreme Scale eXtreme Scale
Streams
AnalyticsOrder Generation
FIX EngineProcessingRules
Market DataAnalytics
IDSMarket
Book and Market History
Referencedata
RoutingEngine
Exchanges, ATS, ECN
Analysis, Pricing and Order Generation
MonitorDesktop
Data Feeds (NYSE)
Simulated Venue forOrder execution
GatewayGateway
Data Feed (NASDAQ)
Data Feed (IDC)
Market Data Distribution
Front Office v3.0Front Office v3.0
Low Latency and High Performance Computing
Ultra-low Latency Transport
In-memory Database
Wire speed TransformationMaximum security
MQ Low Latency Messaging
MQ Low Latency Messaging
WebSphere Front Officefor Financial Markets
WebSphere Front Officefor Financial Markets
DataPower Appliances DataPower Appliances
Infosphere StreamsInfosphere Streams
Solid DBSolid DB
Business Activity Monitoring
Cognos Now!
Stream ProcessingStream Processing
Low Latency Market Data Platform
Low Latency Market Data Platform
IBM Offerings for Financial Markets
Agenda
1. Introducing IBM Industry Framework for Banking• The market demand for Banking Industry Frameworks • Definitions and key benefits
2. Industry Framework and Industry Solutions for Banking • Corebanking Modernisation• Payments and Securities• Customer care & Insight• Integrated Risk• Financial Markets Framework
3. Closing remarks • Where to get new collateral and information• Who to contact• Questions
Banking Industry Frameworks and Industry Solutions
• IBM Industry Solutions:
http://www-01.ibm.com/software/data/content-management/industry-solutions/
• Smarter Commerce: http://www.ibm.com/smarterplanet/dk/da/smarter_commerce/overview/index.html?re=spf
• Banking Industry Frameworks: http://www-935.ibm.com/services/us/gbs/industries/banking/
Questions?
Primary target buyers and usage scenarios for CC&I
Head of Retail Banking
Chief Marketing Officer
Head of Commercial Banking
Head of Retail Banking (or Chief Retail Banking Officer, EVP of Consumer Banking, Head of Retail and Small Business Banking)
• Lead and direct retail banking including consumer current accounts (checking), cards (credit and debit), savings, consumer lending – installment (i.e., auto loans, student loans, etc.), home loans (mortgages) and home equity loans as well as various investment products such as annuities, mutual funds, insurance etc.
• Activities are coordinated over all channels including branches, call centers, ATMs, web and mobile.
Head of Commercial Banking (or Chief of Commercial Banking, EVP of Wholesale Banking, Lending and Treasury Mgmt)
• Responsible for managing relationships and servicing large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions.
• Services include lending, treasury management, correspondent services, dealer commercial services, foreign exchange, government banking, mutual funds, asset-based lending, financing and leasing, commercial real estate, corporate and institutional trust services, and investment banking.
Head of Private Banking, Head of Wealth Management• Oversee all aspects of banking activities targeted at high net-worth customer segments to provide investment management, retail banking, estate planning, legal and trust
resources and tax advise all to build deposits, fee income, and overall asset growth through cross sales of bank products and services, retention, relationship management and community involvement.
• Work closely with all other business line leaders to facilitate the development of new relationships as well as provide bank wide financial solutions to higher net worth clients by acting as a portal across the bank bringing together the right resources, providing convenience to clients, and providing bank wide solutions to clients.
Head of Geographical Subsidiary (or EVP of Banking in a geography, President for a Region, VP of a Branch or Branches)
• Responsible for all facets of performance of regional and branch offices for a designated geographic area. Develops policies, objectives, initiatives for region and is responsible for making sure the region meets its goals and objectives across all products and services of the organization.
Chief Marketing Officer (or SVP of Marketing, Chief Marketing and Client Experience Officer, Head of Marketing)
• Design, operate and execute marketing plans aligned with business priorities to achieve the bank’s goals.• Establish long-term marketing objectives, branding and strategies to ensure continued brand growth and differentiation, while collaborating directly with business lines and
the executive management team.
Head of Geographical Subsidiary
Head of Private Banking or Wealth
Mgmt
IBM Financial Crimes Reference Architecture
Internal / External Scores
Branch / Field Referrals
Credit/Risk Systems
Account Applications
Operational Risk Systems
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Tech
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Corporate Security / Audit Process
Product System Process
Compliance Processes
Remediat-ion / Recovery Process
Integrated Alert & Case Management Platform
Cross Enterprise Analytics
Op. Risk Process
Transaction Channels
Customers and Accounts
Events
Events
Events
Events
Mass Compro-mise
Cross Channel/ Product Analytics
Entity Resolution
Alert Rollup
Link Analysis / Data Visualization
Workflow
Metrics, Reporting, Dashboards
Prioritization
Audit
Policy ManagementRisk Assessment Procedures Training Control
Internal / External Lists
Anti-Money Laundering and Terrorist Finance
Customer Authentication
Risk-Based KYC, CDD, and EDD
Fraud Profiling, Prevention and Detection
AML Transaction Monitoring Large Cash Reporting Market Surveillance
SuitabilityWatch Lists (Sanctions)
Lifecycle Customer Scoring
Initial Customer Scoring
High Risk Monitoring
EDD Processes
Merchant / Device
Identity / OnlineProducts (card, deposit, mortgage, etc)
Internal
Investment
Claims
Application
Device Profiling
Identity ManagementChannels (ATM, POS, Branch, Online, Mobile, etc) Federation
Compromise Surveillance
Authentication
Security Policy Management
Auto-Disposition
FinancialCrimes