Service Oriented Architecture

ByRajeev TiwariRajesh RamadossRishinarayan SharmaRatanjeet SinghSandeep Vadnere

Let’s talk about it

- In Banking

Some Realities

• SOA: Will not solve all your problems• SOA: Innovations would not stop here• SOA: Is not the start all and the end all of technology.

SOA will not get you a Supermodel Girlfriend

With this clarified, it is still worth attending this session on SOA. So please sit down.

Terminologies DefinedSOAis a method for systems development and integration where functionality is grouped around business processes and packaged as services.Service A service is a unit of work done by a Service Provider to achieve desired end results for a Service Consumer.Service RequestorSystems which are the consumer of services accessible by well-defined and published interfaces.Service ProviderSystems which are the providers of services accessible by well-defined and published interfaces.Service Registry / Directoryis a well-known directory of available services

SOA : What is it really?

Service Requestor Service Provider

Service Registry

Financial Services

Bank

Monolithic Financial Institutions

Distribution• Retailers• Captive units• Dealers • Agents• Franchises

Product Supplies• Consumer Credit • Cards• Insurance

Risk , Compliance• Portfolio Risk

Mgmt • Regulatory

Compliance

Processing Utilities• Core Banking• Security• Lending• Payments• Fraud, AML

Competency led Enterprises

What does this mean?

CProprietary DB System

WebsphereJavaOracleXML

CC++DB2

WebsphereJava

Domino Server

Bank Functionality

Customization

Products

Online ATM Branch Internet IntranetLOB

Inconsistent Bank

Customer Experience

Channel Specific

Infrastructure

SOA to the Rescue

Open Standards and

Web Technologies Websphere

Bank Functionality

Customization

Online ATM Branch Internet IntranetLOB

Channel Specific

Infrastructure

Shared Business Logic and Infrastructure

How is SOA differentTraditional Method of Programming

IT Application

Authentication

LoansAccount Operations Misc

Savings

Current

Demat

Personal

SME

Credit

DebitAgricultureBalance

Enquiry

Funds Transfer

Export Finance

Services offered by the banks

Functions which form the Service

Customer Bank

Databases

How is SOA differentTraditional Method of Programming

Limitations• Inability of the IT System to match the Business

requirement • Lack of flexibility in changing existing applications• Time consumed in developing new applications• Cost involved in developing new applications

• Limitations in providing Interoperability between programming languages and platforms

How is SOA differentSOA Architecture

Services offered by the banks

Functions which form the Service

Service Orchestration or Service Choreography

Customer Bank IT Application

Authentication

LoansAccount Operations Misc

Savings

Current

Demat

Personal

SME

Credit

Debit

Agriculture

Balance Enquiry

Funds Transfer

Export Finance

Databases

How is SOA differentSOA Architecture

Advantages• Ease of Maintenance• Redundancy avoided

Challenges• Upfront strategy and investment• Identification of the various services to be provided.

(Should neither be too fine grained nor too coarse) • Ownership of the services • Commitment should be driven from the top

management to be successful.

Benefits of SOA approach to Banks

Reduced time to market and lower cost for new product and service offerings

In an era of increased customer demands and expectations, as well as internal pressures spurred by such factors as mergers and acquisitions, banks must bring new applications to market faster than before. Standardization makes the key application demand of new product offerings — the development of new, and the intelligent reuse of, services — significantly simpler and cheaper.

Ability to deliver a customer-focused experience

SOA fosters reuse, which promotes consistency across channels and applications. Because banks often must introduce new service capabilities to address a small, but profitable, market segment, SOA lets them do so without redeveloping or creating new intelligence for a broad set of applications. This, in turn, enables a bank to continue to present the same "face" to its customers regardless of the channel accessed.

Simpler and less-expensive application maintenance

The standardization inherent in the SOA approach, which results in more functions being performed by less computer code, makes application and capability maintenance significantly less complex and more cost-effective. Because fewer components are affected, reduced development/project complexity and lower operational risk are the rewards.

Benefits of SOA approach to Banks

Reduced operational risk

A fully implemented SOA provides a bank with a highly predictable application environment that reduces risk in day-to-day operations, due to the minimization and isolation of change to the production systems. Banks that fail to take this approach must constantly change their interfaces as external and internal requirements change. This introduces significant risk and the need for near-continuous testing to ensure that the customer "touchpoints" and the back-end processes do not fail, while ensuring that one data or service change doesn't adversely affect other data changes integrated through an interface.

Leveraged channel capabilities

Banks with limited resources tend to seek packaged applications. In doing so, they can better leverage SOA-embedded core banking systems by making new channel deployment and back-end application logic more practical and affordable. Such banks typically lack the depth in IT resources and skills that larger banks claim. SOA offers such banks, mid-tier banks in particular, greater capabilities as well as reduced development and maintenance risks without relying on proprietary systems from a single provider.

Incremental deployment

Services can be developed and deployed in an incremental fashion without immediately requiring the bank to move all of its application portfolio to SOA.

Thank You

& Time to wake up

Questions