This document contains the high-level description of a Reference Architecture including infrastructure and applications concepts/solutions in a Hybrid Cloud context for the FS enterprises. I describe how: app modernization data architecture modernization APIs DevOps Digital and Open banking Cloud-ready operating model Can be aligned in a unique target architecture

1. Digital Banking Reference
Architecture on Hybrid Cloud
HYBRID CLOUD FOUNDATION
PUBLIC CLOUDPRIVATE CLOUD DEDICATED CLOUD
ON PREMISE OFF PREMISE
TRADITIONAL
APPS
MODERNIZED APPLICATIONS
INTEGRATION AND APIs
API Composition Events Data SynchronisationConnectivity
Reusable services
DIGITAL SERVICES FOUNDATION
Digital Agility
Fabric
Automation
Fabric
Data Fabric
{ } { } { } { } { } { }
DATA SYSTEMS LANDSCAPE
3rd-Party
Banking
Solution APIs
SYSTEMS OF ENGAGEMENTS
External Channels
Partner & Ecosystem
Mobile Internet Kiosk White-label OfferingsBranch ATM
Internal
CRM Credit DWP
CLOUD-READY
OPERATING
MODEL
Automation
DevOps
Architecture &
Governance
Identity & Access
Mgnt
Security &
Compliance
CONTAINERS
Multi Cloud Management
IaaS CaaS PaaS IaaS CaaS PaaS
Legacy
IaaS CaaS PaaS SaaS
Davide Veronese
CTO Cloud, IBM Italy
davide.veronese@it.ibm.com
Slack: @davide.veronese

2. 2
Digital Banking Reference Architecture on Hybrid Cloud
• This document contains the high-level description of a Reference
Architecture including infrastructure and applications concepts/solutions
in a Hybrid Cloud context for the FS enterprises.
• I describe how:
• app modernization
• data architecture modernization
• APIs
• DevOps
• Digital and Open banking
• Cloud-ready operating model
Can be aligned in a unique target architecture
More info: https://davideveronese.wordpress.com/

3. An optimized & composable architecture to drive efficiency and business flexibility with Cloud
3
HYBRID CLOUD FOUNDATION
PUBLIC CLOUDPRIVATE CLOUD DEDICATED CLOUD
ON PREMISE OFF PREMISE
TRADITIONAL
APPS
MODERNIZED APPLICATIONS
INTEGRATION AND APIsAPI Composition Events Data SynchronisationConnectivity
Reusable services
DIGITAL SERVICES FOUNDATION
Digital Agility
Fabric
Intelligent
Automation
Fabric
Data & Insights
Fabric
{ } { } { } { } { } { }
DATA SYSTEMS LANDSCAPE
3rd
-Party
Banking
Solution APIs
SYSTEMS OF ENGAGEMENTS
External Channels
Partner & Ecosystem
Mobile Internet Kiosk White-label OfferingsBranch ATM
Internal
CRM Credit DWP
CLOUD-READY
OPERATING
MODEL
Automation
DevOps
Architecture &
Governance
Identity & Access
Mgnt
TRADITIONAL APPLICATIONS
• Transaction processing requiring
high volume processing capabilities
with security and transaction
integrity
• Complex legacy applications built
over years from scratch or packaged
applications (Mainframes with
COBOL, PASCAL and other legacy
technologies or COTS e.g. SAP,
Oracle, CAD)
MODERNIZED APPLICATION BUS
MODULES
• Portfolio / long tail of applications
supporting core business SORs
• Decomponentized and Service
Orientation
• Variety of tech stack – OS, DB, MW,
Runtimes
DATA SYSTEMS
LANDSCAPE
• Enterprise Data Warehouses,
Data Marts, Operational
Data Stores
• Analytical Processing systems
requiring heavy compute
resources need
DIGITAL SERVICES
FOUNDATION
• Digital Agility Fabric with such
capabilities as Microservices,
API and Containers at core
• Hybrid Data fabric with rapid
access to transactional data
source of truth, analytical
processing at the edge,
automation enabled by
Machine Learning and AI
CLOUD-READY OPERATIING MODEL
• Full Software Defined Delivery model
• Increased and improved
collaboration
• DevOps CoC
• New roles definition
Security &
Compliance
The Digital Banking Reference Architecture on Hybrid Cloud
CONTAINERS
Multi Cloud Management
IaaS CaaS PaaS IaaS CaaS PaaS
Legacy
IaaS CaaS PaaS SaaS

4. 4
Reference Architecture highlights
Why this reference architecture
There are multiple internal and external factors that indicate how the financial industry and their revenue
pools are substantially disrupted, such as: new customer behavior, new FinTech capabilities and regulators
requirements. This leads the banks to wonder how their infrastructure, applications and operating models
could evolve to achieve the flexibility and agility required to take part of an ecosystem as the only way to
remain competitive in the market.
With this asset I framed all the technical transformation topics in one single and consistent view. The view is
organized in 10 focus area including important topics as: Containers, Core-to-Cloud and Open Banking.
Digital Banking Hybrid Multicloud
Why: a core layer of this asset is the
Digital Services Foundation, intended
to host the implementation and
governance of new cloud-native
banking capabilities
Why: more than in other sectors, the
internal and external factors are forcing
the banks to change how they produce
services. A clear target state is required
to coordinate and align the changes
Why: the banking technology
architecture is usually based on
traditional on-premise IT. This, have to
be extended with Cloud to gain
flexibility and agility

5. 5
Investments in and the Rise of the Fintechs
This is a non
exhaustive list of new
FinTech players who are
becoming aggressive to
erode part of the traditional
banks revenue.
The banks have to
become more agile and
flexible to offer digital native
products/services or to
integrate with these new
players keeping the client
experience control
Fact
So what

6. Financial regulators, key events and publications for 2020

7. Reference Architecture
highlights: 10 areas
• Hybrid cloud foundation: the infrastructure and middleware systems at the base
• Traditional Applications: not cloud-ready applications which will continue top stay
on traditional IT, mainly belonging to Core Banking systems
• Modernized applications: transformed or modernized applications which will take
advantages from underlying Cloud technology solutions
• Containers: the emerged technology to increase application portability
• Data systems: never forget the data!
• Integration and APIs: the traditional integration layer now is becoming much more
complex
• Digital services foundation: where to design, implement and govern the new digital
banking services
• 3rd
-party banking solution APIs: the merging banking services available in SaaS
model
• Systems of engagements: the traditional internal and external channels where the
banks which have recently centralized most part of investments
• Cloud-ready operating model: the new model including DevOps required to operate
the overall complexity
UniCredit / IBM confidential
HYBRID CLOUD FOUNDATION
PUBLIC CLOUDPRIVATE CLOUD DEDICATED CLOUD
ON PREMISE OFF PREMISE
TRADITIONAL
APPS
MODERNIZED APPLICATIONS
INTEGRATION AND APIs
API Composition Events Data SynchronisationConnectivity
Reusable services
DIGITAL SERVICES FOUNDATION
Digital Agility
Fabric
Automation
Fabric
Data Fabric
{ } { } { } { } { } { }
DATA SYSTEMS LANDSCAPE
3rd-Party
Banking
Solution APIs
SYSTEMS OF ENGAGEMENTS
External Channels
Partner & Ecosystem
Mobile Internet Kiosk White-label OfferingsBranch ATM
Internal
CRM Credit DWP
CLOUD-READY
OPERATING
MODEL
Automation
DevOps
Architecture &
Governance
Identity & Access
Mgnt
Security &
Compliance
CONTAINERS
Multi Cloud Management
IaaS CaaS PaaS IaaS CaaS PaaS
Legacy
IaaS CaaS PaaS SaaS
7

8. Hybrid MultiCloud foundation
• Hybrid: the banking application workload is heterogeneous,
and the hybrid infrastructure will guarantee to support an
optimized disposition model where the applications will run
where the combination of economics and innovation benefits
is maximized
• MultiCloud: to guarantee the application portability and to
avoid any vendor lock-in the adoption of a single Cloud
provider is not an option
• Infrastructure automated provisioning, MultiCloud DevOps,
Ops management, Security&Compliance and Financial
Governance are not an optional for an efficient Hybrid
MultiCloud management system
8

9. Traditional Applications
• Doesn’t make sense to transform all the banking applications to
make them cloud-ready or cloud-native
• Some applications mainly in core banking are probably highly
optimized and super efficient
• An API enablement approach can make these applications part
of the APIs drive ecosystem: z/OS Connect1 is the answer
• Batches programs are very common in banking context, while
batch-less is a common Cloud pattern. A Batch Modernization2
approach make sense here
9
TRADITIONAL
APPS
1.https://developer.ibm.com/mainframe/products/zosconnect/
2.https://w3-connections.ibm.com/wikis/home?lang=en#!/wiki/W5d7205eb1fa3_4d16_98b5_a1374434b877/page/Batch%20Modernization

10. Modernized Applications (1/2)
• Doesn’t make sense to transform all the banking applications to
make them cloud-ready or cloud-native
• A Cloud readiness assessment can be done to evaluate costs and
benefits
• IBM is uniquely positioned to help our clients with tools,
methods and professional services:
• Cloud Innovate1
• BlueCAT2
• Data Center and Cloud Migration methodology3
• Cloud Advisory Services (CAS4) and Cloud Migration Factory (CMF5)
organizations
10
1.An Easier Way to Process Your Cloud Migration - https://www.ibm.com/blogs/think/2017/03/granger-cloud/
2.IBM Services Cloud Modernization and Migration - https://www.ibm.com/downloads/cas/RDAVJAZ7
3.https://w3-connections.ibm.com/wikis/home?lang=en#!/wiki/W7e547598dac7_4572_8b34_e4b898794acc/page/DCCM%20Overview%20-%20Snippets
4.https://w3.ibm.com/services/lighthouse/documents/57833
5.https://w3.ibm.com/w3publisher/cloudmigrationfactory-factory
MODERNIZED APPLICATIONS

11. Modernized Applications (2/2)
• The current mainframe application can leverage the following
technology for a progressive modernization
• Containerization: Red Hat OpenShift on Z1 and zCX2 for native Docker
container management
• API Enablement: z/OS Connect3 to enables z/OS-based programs and
data to participate fully in the new API economy
• DevOps: Z Open Development, Z Open Unit Test, Z Development and
Test Environment (zD&T), UrbanCode Velocity and UrbanCode Deploy
for z Systems
• Open source frameworks: Zowe4 to allow Z based functionality to be
accessible across an organization
• Cloud integration: z/OS Cloud Broker5
11
1.https://www.ibm.com/blogs/systems/red-hat-openshift-now-available-ibm-z-linuxone/
2.https://www.ibm.com/support/z-content-solutions/container-extensions/
3.https://developer.ibm.com/mainframe/products/zosconnect/
4.https://www.zowe.org/
5.https://www.ibm.com/us-en/marketplace/zos-cloud-broker
MODERNIZED APPLICATIONS

12. Containers
• Containerization is one of the application
cloudification/modernization option to guarantee the maximum
level of portability in a Hybrid MultiCloud context
• The mainframe also supports the Containers technology:
• Recently announced Red Hat OpenShift on Z1
• zCX2 for native Docker container management
• Red Hat OpenShift3 is the key platform to run and manage
containers based on Kubernetes as orchestrator
• IBM Cloud Paks4 are enterprise-ready, containerized software
solutions that give banks an open, faster and more secure way
to move core business applications to any cloud
12
1.https://www.ibm.com/blogs/systems/red-hat-openshift-now-available-ibm-z-linuxone/
2.https://www.ibm.com/support/z-content-solutions/container-extensions/
3.https://www.openshift.com/
4.https://www.ibm.com/cloud/paks/
CONTAINERS

13. Data
• As the applications, even the data have to be ready for a Hybrid MultiCloud
context
• IBM Cloud Pak for Data1, a fully-integrated data and AI platform that
modernizes how businesses collect, organize and analyze data and infuse AI
throughout their organizations
• Leverage the wide range of partner solutions2 to help build a best-in-class
platform, with a growing ecosystem of technology partners and system
integrators.
• Enterprise Data Warehouses, Data Marts, Operational Data Stores and Event
driven data capture
• Analytical Processing systems requiring heavy compute resources need
13
1.https://www.ibm.com/cloud/paks/
2.https://www.ibm.com/products/cloud-pak-for-data/partners#section-heading-1
DATA SYSTEMS LANDSCAPE

14. Integration and APIs
• The integration layer is responsible to host application and data
decoupling capabilities between:
• Core banking ó new digital services
• Core banking / digital services ó 3rd party platform/services
• IBM Cloud Pak for Integration1, a complete set of integration
capabilities to efficiently connect applications and data wherever
they live:
• API lifecycle management
• App & data integration
• Enterprise messaging
• Events streams
• Secure gateway
14
1.https://www.ibm.com/cloud/cloud-pak-for-integration
INTEGRATIONANDAPIs
APIComposition Events DataSynchronisationConnectivity
Reusableservices

15. Digital Services Foundation
• Leverage IBMs Banking reference model to Enhance BIAN
Architecture
• Digital Services Enablement (DSE) Architecture Building Blocks
Are Defined To Help Banks Accelerate Transformation To Digital
And Open Banking
15
DIGITAL SERVICES FOUNDATION
Digital Agility
Fabric
Intelligent
Automation
Fabric
Data & Insights
Fabric
{ } { } { } { } { } { }
Digital Services Enablement1
1. IBM Digital Core Systems, Sajal Mukherjee, Offering Leader | Ram Ravishankar, DE & CTO - IBM Services for Cloud Strategy
Intelligent Automation Fabric
Digital Agility Fabric Data & Insights Fabric
Product Fulfillment (Operations and Execution)
Loans & Deposits Cards Consumer Services
Sales & Service
Customer Mgmt
Sales & Service
Sales
Risk & Compliance
Models Bus Analysis & reporting
Data
Lake
Reference data SoR Data Event History Party data
Fraud
Model
Credit
Risk
Risk
Models
Campaign
Mgmt
Product
Matching
Offers… Product
Portfolio
Market
Research
ReportingLoans Current
Account
Other.. Authori
zation
Billing Other..
Service
Product
Currency Other.. Customer
Agreement
Customer
Entitlement
Other..
µService Foundation
Other Cloud Services
(e.g. Smart Contract, IoT, Key
Management)
Service Mesh
Social Data
Business Rules Management
Servicing Order - Chatbot Prospect ManagementParty Lifecycle Mgmt
Robotic Process Automation Cognitive Process Automation
Market Data
Entitlement ...

16. 3rd party Banking solutions
There are multiple internal and external factors that indicate how
the financial industry and their revenue pools are substantially
disrupted, such as new FinTech capabilities and regulators
requirements. This leads the banks to wonder how their
infrastructure, applications and operating models could evolve to
achieve the flexibility and agility required to take part of an
ecosystem as the only way to remain competitive in the market.
16
3rd-Party
Banking
Solution APIs

17. Systems of engagement
• This is the area where the banks have dedicated most part of the
IT budget in the last years
• It’s mandatory for the banks to protect the investments done,
and take the benefits in terms of business agility and flexibility
provided by the remaining IT organizations and technology
• The Digital Service Foundation layer will provide new digital
capabilities to be integrated with the traditional systems of
engagement
17
1.https://www.ibm.com/cloud/cloud-pak-for-integration
SYSTEMS OF ENGAGEMENTS
External Channels
Partner & Ecosystem
Mobile Internet Kiosk White-label OfferingsBranch ATM
Internal
CRM Credit DWP

18. Cloud ready operating model
• How the IT is able to operate the new platform is a key success factor
• There are 2 models that are coexisting:
• Traditional IT: reach of exceptions, dedicated processes and customizations
• Cloud model: where automation and standardization are at the core to
guarantee flexibility and reduced cost-to-serve
• The new operating model have to guarantee the status-quo to avoid
high risks related to major changes, and to adopt cloud-ready
capabilities as:
• DevOps: a multi-technology and multi-role discipline to dev, deploy and run
sw in a modern way
• Architecture and governance: to enrich the consolidated architectural
capabilities with Cloud-related topics as Microservices and APIs
• Automation: this is mandatory to have a more efficient operating model.
Automation means more standards and less manual tasks resulting in the
reduction of operational risks.
18
1.https://www.ibm.com/cloud/cloud-pak-for-integration
CLOUD-READY
OPERATING
MODEL
Automation
DevOps
Architecture &
Governance
Identity &
Access Mgnt
Security &
Compliance