Global Payment System- Reference Architecture

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Global Payment System- Reference Architecture

  1. 1. STRICTLY PRIVATE & CONFIDENTIAL Global Payment System‐Reference Architecture ( Payment Architecture Building Blocks)  14 Apr 2014 Ramadas Varier
  2. 2. PRIVATE & CONFIDENTIAL Payment  Reference Architecture :Agenda o Payment Outline Architecture o Payment Reference Architecture Framework o Payment Architecture Building Blocks o Payment  architecture Reference blocks o Building block definitions o Enterprise Payment Transaction hub o Payment Operation o Regulatory &  Global Compliance hub o Payment Transaction Data Warehouse o Business Activity Monitoring o Reconciliation o Back Office Accounting services o Payment Architecture Mapping  o Payment  Framework Components o Payment Capability Reference model 2
  3. 3. PRIVATE & CONFIDENTIAL Outline Reference :Payment Architecture 3 Interaction layer User Interfaces & Alliance Process layer Business Rules/Process Models/Process Manager Enterprise Payment service Bus Information layer Data warehouse Data models Events Reporting Payment Application services Rules engine , bulking/de-bulking Transformation , account look-up/validation Ledger posting and booking Accounting system Liquidity System Logging Validation Auditing Calendar scheduler Persistence service Orchestration Enrichment Fee Calculation BusinessActivityMonitoring Performanceandavailabilityservices RepositoryandRegistryservices Paymentgateways AMLAndOFACService Security & Risk servicesAuthentication Audit Access Control Delivery & Implementation layerDevelopment Delivery Implementation
  4. 4. PRIVATE & CONFIDENTIAL Payment  Reference Architecture Framework  4 ProductManagement Retail Online Wholesale Online Host to host ATM Treasury POS IVR Back Office Call Center Interaction Process and Automation User Interface | Collaborations |Rules Engine | data Models| Data Transformation Security Services Access Security| Authentications | Authorizations | Audit | Fraud management Message Interactions Validation Routing Bulking/ debulking Transformation Enrichment Repair State machine AML service Scheme Limits Fund Control Rules Store Payment Store Deposits Loans Treasury Trade Finance Mortgages Finance Policy Procurement & Administration Finance IT Risk Management Payment Applications Human Resource Business Process Management CoreServices Business Alerts and Monitoring External Data Budgeting & Forecasting Customer Marketing Almanac Enterprise Payment services Bus Storage Windows Linux Mainframe CloudWarehouse Externalgatewayservices SystemmanagementCommunication Interaction layer
  5. 5. PRIVATE & CONFIDENTIAL Payment Architecture  building blocks 5 Retail Online Wholesale Online Host to host ATM Treasury POS IVR Back Office Call Center Interaction Process and Automation User Interface | Collaborations |Rules Engine | data Models| Data Transformation Security Services Access Security| Authentications | Authorizations | Audit | Fraud management Message Interactions Validation Routing Bulking/ debulking Transformation Enrichment Repair State machine AML service Scheme Limits Fund Control Rules Store Payment Store Deposits Loans Treasury Trade Finance Mortgages Finance Policy Procurement & Administration Finance IT Risk Management Payment Applications ProductManagement Human Resource Business Process Management CoreServices Business Alerts and Monitoring External Data Budgeting & Forecasting Customer Marketing Almanac Enterprise Payment services Bus Storage Windows Linux Mainframe CloudWarehouse Externalgatewayservices SystemmanagementCommunication Interaction layer Channels ESB Products Risk&Compliance Security BPM BAM D/W Infrastructure Gateway PaymentEngine
  6. 6. PRIVATE & CONFIDENTIAL Payment  Architecture  Reference Blocks (PAB) 6 Enterprise Payment Bus PAB1- Enterprise Payment transaction Hub PAB4- Payment Transaction Data warehouse PAB2- Payment Operations PAB3- Regulatory & Compliance hub PAB5- Business Activity Monitoring ( BAM) PAB6- Reconciliation PAB7- Backoffice Accounting Services Validation Bulking & De Bulking Transformation Enrichment Alerts Enquiries & Investigation Posting Redirection Matching accounts Reversal Dashboard Reporting Reference data Archive AML OFAC
  7. 7. PRIVATE & CONFIDENTIAL Payment Architecture Block Definitions 7 Enterprise Payment Bus Enterprise Payment Bus is a strategic architecture reference block that provides collection of business and IT capabilities for end to end Payments life cycle management, where payment refers to all types of transactions through all the channels and gateways for all the LoBs of the bank. It will deliver standardization, reliability, performance, throughput, reduced cost per transaction, and flexibility. Enterprise Payment Transaction hub PAB1 Enterprise payment transaction hub provides the backbone to loosely coupled payment transaction processing systems enabling agile business change in response to regulations and operating models. It provides capabilities such as transaction validation and message transformation, enrichment of transaction content for processing, identifying duplicate transactions, and complex events management to handle transactions. Payment Operations PAB2 Payment Operations enables early detection of exceptions and resolution through case management. It allows investigation in to enquiries, and exceptions. The case management capability provides the processes to manage exceptions and prevent propagation to downstream systems leading to higher operational efficiency. Regulatory & compliance Hub PAB3 Regulatory and compliance hub ensures that business policies (e.g., regulatory check) related to different transaction types are run before the execution of the transactions in addition to managing business rules for sequencing. It reduces a lot of hard coding and improves configurability by running as a service off the bus. It will extends existing components to provide a service that will run off the bus to perform financial crime checks. Payment Transaction Data warehouse PAB4 Payment Transaction Data Services acts as a single source of truth for all transactions processed through Payment Bus enabling business to query and generate reports by aggregating transaction data. It provides storage and retrieval of transactions, transaction reference data , operational reporting and archival capabilities. Business Activity Monitoring PAB5 BAM tracks the transactions as they flow through the Payment bus and processing systems such as engines. It provides the ability to track the transactions and also create dashboard view for business on each of the transactions. Reconciliation PAB6 Reconciliation utility reuses and extends existing components to provide a centralised reconciliation solution across the transaction processing for all the business units. Backoffice Accounting Service PAB7 Accounting services is the single entry point to accounting systems through Payment Bus. It provides capabilities such as account look up, redirection and posting
  8. 8. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB1‐ Enterprise Payment Transaction Hub 8 Capability Provides the infrastructure for end to end management of transaction life cycle leading to reduction in cost of transaction and improvement in reliability. Provides central infrastructure to deliver major regulatory projects. Enables business activity monitoring by creating a central hub through which transactions flow. Design Characteristics Provides the backbone for payments processing by enabling inter-connectedness of systems without tight coupling. Will receive data events from multiple systems through real time, near real time and Batch interfaces. It facilitates invocation of both internal and external services to process the transactions It will provide platinum availability and high performance characteristics to ensure scalability of payments transactional services solution It de-risks implementation and any changes to its interfacing systems including Engines. Interfaces It will provide interfaces for publishing and subscribing events and messages in addition to fine grained services pre- processing It will provide interfaces for upstream and downstream systems participating in a payment transaction lifecycle to communicate with each other in a transparent manner. It provides interface to monitoring solutions for business and technical activity across the payment transaction lifecycle. It will interface with Payment Transaction Data Warehouse Solutions : Fundtech- Global Payplus-Service platform(GPP) Logica - Logica All Payment solutions(LAPS) IBM - Financial Transaction Manager (FTM) Polaris- Intellect Payment Services Hub Mysis - Misys Payment Manager Clear2Pay- Open Payment Framework (OPF) Oracle - Enterprise Payment Services(Flexcube)
  9. 9. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB2‐Payment Operations 9 Capability Payment operations provide end to end work flow management of cases related to the investigations triggered from exceptions (from transaction processing, fraud check, etc) and enquiries , including enquiries on status of the transactions It can be used to centralize the investigation and posting of unapplied payment transactions across payment types upon identification from an accounting services. The solution will facilitate customer enquiries and investigations, with auto-case creation, queuing, allocation, update and role-based access to operations and customer facing teams. It will provide reports on typical exceptions causing investigations feeding to improve STP capabilities; types of customer enquiries, etc Design Characteristics This will be a centralized solution for payment transaction processing and financial crime investigations This service will not be used in the applications where work flow management functions are readily available for transaction processing (e.g. GPP). It will actively use payment transactions Data Services for data validation and investigation. Interfaces Accesses transaction data from Transaction Data services, and customer data from reference data service (SCV). It will access data through Payment Bus. Will be integrated to CRM systems to accept the enquiries, requests, etc
  10. 10. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB 3‐ Regulatory & Global Compliance Hub 10 Capability The compliance hub ensures that events happen in a prescribed sequence. This will include validating sequences of events and determining follow on services. Invalid data, deviation from required patterns of message exchanges and SLA breaches will all be reported. It provides an enterprise suit of tools and capabilities to prevent, detect and remediate fraud and financial crime. It would include Sanctions, AML, and any other fraud list. The Compliance hub will provide centralised enforcement of compliance policies. Design Characteristics A highly available component with multiple instantiations for reasons of scalability, performance , geography and financial & legal jurisdiction. It will be underpinned by a SOA architecture to avoid tight coupling Fraud capabilities with either the Source Systems or the Payments Architecture. Will use publisher/subscriber service offered by Payment Bus to accept and push the transactions flowing through it. Provides guaranteed SLA for transaction life cycle through a managed services approach. Will receive data from multiple systems through real time, near real time and Batch interfaces. Will provide high availability and extreme performance characteristics to ensure scalability of transactional services solution. Interfaces The Enforcement Engine will be attached the Payment Bus. It will receive input via subscriptions and invoke other services via publishing. It will use standard connectivity methods that will cater for :Publish / Subscribe ,Synchronous ,Asynchronous It will provide interface to Payment Bus to support all the payment transactions processing through the Bus. It provides interface to monitoring solutions for deep technical system activity and business activity monitoring across the transaction lifecycle.
  11. 11. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB4‐Payment Transaction Data Warehouse 11 Capability PTDW creates a centralised repository for all transactions. This allows business to create customer outputs by pulling together transaction and customer data. PTDW enables audit capability for all transaction data PTDW improves transaction reliability by enabling de-duplication Design Characteristics PTDW provides a single view of Payment transactional data flowing through the Payment bus. PTDW provides a set of services for consumption by consumers through the payment bus or directly for creation, update, searching, querying but not for deletion of transaction data. PTDW will provide high availability and performance characteristics to ensure scalability of transactional services solution. This is not a reporting solution but will provide querying capabilities and allows for reporting using other tools. Interfaces It interfaces with Payment Bus for the purpose of exchanging transaction It facilitates data to reporting engine. It moves data to data archive
  12. 12. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB5‐Business Activity Monitoring 12 Capability: Provides central location for monitoring and predictive analysis of business processes Includes dashboards for monitoring and MI as well alerts for key business events, for use by business users BAM will interact with Transaction Bus for monitoring all the transactions in the transaction processing landscape. Design Characteristics BAM needs to monitor Transaction Bus alone as all the systems in the transaction processing estate push data to monitor to transaction bus Will be organised into three service levels to reflect the criticality of the transactions being monitored so that Gold services are given a higher priority than silver ones when they are sent to BAM Key Interfaces: A single type of interface from Payment Bus to BAM will be used to communicate events in a common format
  13. 13. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB6‐Reconciliation 13 Capability The Reconciliation provides better visibility and financial control over the bank globally. It will helps to reconcile all the payment transaction data through one central reliable tool It will enable the Cash, Bank and General Ledger balances are stored, and provides global treasury position on corporate cash. The automated processing of data reduces manual entry and consequently reduces the possibility of fraud and increases financial control Design Characteristics The reconciliation need to monitor all the local and international payment transaction from the Payment Bus. The Reconciliation service will do the matching and reversal process along with the accounting services. A highly available component with multiple instantiations for reasons of scalability, performance , geography and financial & legal jurisdiction. Interfaces The Reconciliation service sits between the Payment Bus and the Accounting systems. The connectivity will be through the Payment Bus using a publish and subscribe mode
  14. 14. PRIVATE & CONFIDENTIAL Enterprise Payment Bus PAB7‐ Back office Accounting Services 14 Capability The Accounting service provides isolation from Payment engines and back end Accounting Systems. Facilitates efficient routing of on-us transactions and internal-switching Delivers a common set of routing rules and practices in one place , thus removing duplicate logic , often at variance, from payment engines. Simplifies switching and redirection between accounting systems at account level or group level (e.g. wholesale loans migrations) Supported by tools allowing business to interrogate routing rules (e.g. how to answer the question – “Which accounting system was my payment routed to?”) Flexibility to add new channels, engines, and product systems with minimal impact to existing processes Design Characteristics Service for Accounting Services will be published or subscribed by Payment Bus. A highly available component with multiple instantiations for reasons of scalability, performance , geography and financial & legal jurisdiction. The Accounting Services will be table driven enabling changes to be made without coding effort. Changes will be audited and secured through a multi-level authorisation process Interfaces The Accounting services sits logically between Payment Engines and Accounting Systems. Connectivity will be via the Payment Bus using a publish and subscribe mod
  15. 15. PRIVATE & CONFIDENTIAL Payment Architecture Mapping  15 Payment Engine Middleware Framework Features Pre-built scheme level processing, Black box component Stateless/full Pure middleware product supporting messaging/ Payments Repository, processing Pre-build sub-flows, Stateless/full Grey box component Advantages Low implementation cost if implementation ‘out of the box’ Low technology cost Relative low cost Standards based Modular Disadvantages Customisation cycle slow Black box component High product cost Building enhanced function is costly Customisation can still be expensive Examples Fundtech GPP IBM MQ/Message Broker, Oracle (BEA Weblogic) IBM Enterprise Payments platform, Clear2pay, Polaris Soft. Lab
  16. 16. PRIVATE & CONFIDENTIAL Payment Frame work Components 16 Framework Components Tool Interaction Webshpere portal and Lotus Forms Process IBM IFW, BPM tool, Oracle Business Process Suite, WODM Business Rules Management Information Cognos, Pure XML, Rational Data Architect, Webshpere Transformation Extender, IBM Banking Data Warehouse Models Service Management Tivoli Composite Application Manager for SOA, Rational Asset Manager Access Webshpere Business Integrator, Webshpere Partner Gateways Authentication Tivoli Identity Manager Delivery & Implementation Rational Software Architect with IFW* Rational Jazz WebSphere Banking Content Pack* Rational Requisite Pro WebSphere Modeler with IFW* Security Services Rational AppScan (PCI DSS) and Policy Tester
  17. 17. PRIVATE & CONFIDENTIAL Payment Capability  Reference model Payment Transmission Instrument Based Domestic Intern’nal Inter- Account Payment Initiation Payment Processing Customer balances Treasury AML & SDN/OFAC Checks Banks GL Customer Facilities Customer Master Date MIS & Datawarehouse Interfacetorestofbankssystems Reports Customer ERP System Internet Banking Payments from Whitelabel Business In-bound Payments MA CUG Bank’s Customer Service Payments Initiated by Other txns (like FX, Trade etc.) INBOUND PAYMENTS (Interface Layer) OUTBOUND PAYMENTS (Interface Layer) PaymentWorkflow Alerts Inbound Q Repair Q Referral Q Auth Q Outbound Q Validate Payment (Validate Source, duplicate check, Business validation) Payment Archival Rules Checking (Limits, Balance, SDN, etc) Payment Batching Determine Routing (where to send payments) Check Printing Local Clearing/ RTGS SWIFT BOOK TRANSFER Billing System Reporting System
  18. 18. PRIVATE & CONFIDENTIAL Thank You 18 Excellent Architects. Globally.

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