IT in Banking v0 2

© 2013 – All rights reserved
1
Proprietary and Confidential
Information Technology
in Banking

2
The following presentation is intended to outline general market practices
adopted in the market for systems implementation primarily in Banks and
Financial Institutions.
It is intended for information purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making decisions.
The views and content expressed in the presentation are solely
independent views of the author and does not represent the
views of the institution in which he may be involved in various
capacities.
Disclaimer

3
WHY IS TECHNOLOGY IMPORTANT IN
BANKING AND FINANCIAL SERVICES?

4
Business Drivers for adoption of technology
Customer Banker IT StaffOperation Staff
PERSONALIZED
WEB EXPERIENCE
SELF-SERVICE
CAPABILITIES
ASSISTED
CHANNEL SUPPORT
SUPERIOR
MOBILE BANKING
IMPROVED KNOWLEDGE
WORKFORCE PRODUCTIVITY
INCREASED CROSS-SELL &
UP-SELL
SEAMLESS INFORMATION
MANAGEMENT ACROSS THE
BANK
END-TO-END SERVICING
CAPABILITIES
MEASURE & IMPROVE
PERFORMANCE
MANAGE RISK &
COMPLIANCE
COMPREHENSIVE
SECURITY
REGULATORY COMPLIANCE
& REPORTING
OPEN DEVELOPMENT
ENVIRONMENT
HARMONIZED
SOLUTION
SUPERIOR
PERFORMANCE
COMPLETE
IT SECURITY

5
Evolution of technology
1990
2000 2010
1980
PASCAL
C, C++
SQL
FORTRAN
COBOL
BASIC
PYTHON
VISUAL BASIC
JAVA
JAVASCRIPT
PHP
ACTIONSCRIPT
C#, F#
VISUALBASIC.NET
GROOVY
SCALA
CLOJURE
GO
DART
Ledger Posting Machines (LPMs)
Advanced Ledger Posting Machines (ALPMs
Stand alone computer systems (LANs)
Network Based Systems (WANs),
Core Banking solutions

6
Perspectives…..
PERSPECTIVE
•Project Management
•Project Consulting
•Change Management
Consulting Houses
•Functrioning of the financial
Institution
•Implementing monetary policie
•Regulating and supervising the
banking industry
Regulatory
System Integrators
•Integration between various surround
systems.
•Implementation and support
Software Services
• Increased sale of software products –
Core banking, AML, Reconsiliation,
Reporting
• Implementation and support
• Customization based on local
requirements
•Easy business flow
•Increased service qualtiy to
Customers
•Increased cross sell
Business
•License sale and revenue
from the sale
Hardware Vendors

7
Business vs IT - Bank
Central access
and ownership of
information
Self-service
business
ownership
Business users want their own self-service
and ownership to gain results faster
 Rapid Answers
 Dynamic and Adhoc questioning
 Rapidly changing requirements
 Freedom to investigate
IT needs a central ownership to information
to streamline processes and ensure
sustainability
 Security
 Scalability
 Repeatability
 Accuracy
 Auditability

8
CIO / CTO perspective of a Bank
A
S
S
E
T
M
A
N
A
G
E
M
E
N
T
Trade Finance
LC & Guarantees
Bills & Collections
Commercial Loans
Corporate
Deposits
Loan
Syndication
Current and Saving Accounts
Derivatives
Forex
Money
Market
Current and Saving
Accounts
Term Deposit
Teller Services
Retail and SME
Loans
Internet Banking Branch ATM POS IVR/ Call Centre
CLS
Standing
Instruction
Relationship
Pricing
Electronic Messaging
System
Cash
Management
Nostro
Reconciliation
Instrument Based Clearing
Security & Access
Control
Customer
Information
Limits &
Collaterals
Management Information System General Ledger Reporting
Retail Banking Corporate Banking Payments Treasury Investment
Support
Services
Core
Services
Swaps &
FRAs
OTC
Options
Exchange
Traded
Derivatives
Securities
Institutional
Delivery
ACH
SWIFT
FTGS
Institutional
Delivery
Regulatory
Reporting System
Enterprise
Financial System
CRM System
Treasury Front
office System
Dealing System
Data Feeds
Other Systems
Process Packs
Account Opening
Credit Lines
(Origination,
Renewal, Closure)
Local
Payments
RTGS
Collections
Fast & Urgent
Payments
SWIFT
Local
Payments
RTGS
Fast & Urgent
Payments

9
Spot
Front office – Treasury
Deal Input
Exchange
Traded
Derivatives
OTC –
Options and
Derivatives
Forex
Money
Market
Securities
Forward Swaps NDFPlacement Borrowing
Hedge TradeContract Buy Sell
Securities
Exchange Traded Derivatives
Futures Options Bonds Derivatives Commodity Interest Rate Currency Equity
Derivatives
Forward Rate
Agreements
Interest Rate Swaps
Cross Currency
Swaps
Foreign Exchange
Fixed
Interest Bonds
Floating
Interest Bonds
T-Bills /ZCB/
Corporate Bonds
Discounted
Instruments
Equities Rights Warrants Banker’s
Acceptance
Repos/
Reverse Repos
Money Market

10
Middle office – Risk Management
Product/
Contract
Accounting Limits Advices
Charges/
Brokerage
Settlement Messaging MIS Reporting Tax SWIFT
Multi
Currency
LIFE CYCLE
FEATURES
FRAME WORK
Book Revalue Close Reversal Matching Expiry Excercise Assign
Termination Liquidation Rollover Amendment Confirmation Extend Reassign Settlement
Deal
Enrichment
Authorization
Message
Generation
Tax
Processing
Charges Netting
Brokerage
Calculation
Holiday
Processing
Payment Settlement
FX, Money Market
Coupon
Processing
Dividend
Processing
Rights Warrants Redemption Portfolio
Processing
Revaluation Costing
Accrual
Processing
Accounting
Securities
Cap Floor Collar Corridor
Payer
Swaption
Receiver
Swaption
Plain
Vanilla
Binary Digital
No
Touch
Interest Rate Options Swaptions Currency Rate Options

11
Back office – Accounting and Messaging
INSTIUTIONAL
DELIVERY
ACH
SWIFT
GIRO
CENTRAL BANK
REPORTING
ZENGIN
CLEARSTREAM
/CEDEL
RATE FEEDS
INTERNET BANKING
SUITE
PORTAL
RETAIL
CORPORATE
INVESTOR SERVICES
BROKER
3rd PARTY
INTERFACES
CRM
DEALING SYSTEM
OTHER INTERFACES
Bills and
collections
Deposits Loans CASA Letters of
Credit
Foreign
Exchange
Money
Market
Dealer
Investor
Services
Cash Liquidity
Management
Asset
Management
Derivatives Securities Loan Application
Processing
Loan
Syndication
Signature
Verification
Funds Transfer
Standing
Instructions
Electronic
Messaging System
Workflow
Management
Nostro
Reconciliation
Fixed Asset
Management
Expense
Processing
Risk
Management
Clearing
Management
Information
System
Customer
Information
system
General Ledger
CORE MODULES
COMMON FACILITIES
FUNCTIONAL MODULE

12
Trade Flow

13
Back office – Retail Banking
Retail
Servicing
Cash Management
• Multi branch
• Multi Currency
• Multi Account
• Standing Instructions
Instrument Processing
• Cheque
• Demand Draft
• Banker’s Cheque
• Travelers Cheque
Savings Account
• Multiple Account types
• Transaction Types
• Flexible Interest calculation
• Multi Currency
Payment
• Teller
• POS
• Kiosk
• ATM
• Internet
• Call Center
• Mobile
Current Account
• Overdrafts
• Escrow Processing
• Project Account
• Multi Currency
Deposits
• Term / Recurring / Auto
• Flexible Interest calculation
• Multi Currency
• Dual Currency Deposits
Mortgages
• Acquisition
• Initiation
• Servicing
• Payments and Settlements
• Tracking
• Collections
• Risk Management

14
Back office – Corporate Banking
Corporate
Servicing
Collections
• Incoming/ Outgoing
• Usance / Sight
• Documentary
• Clean
• Under LC
• Not under LC
Overdraft
• Risk Management
• Collaterals
• Interest Calculation
Guarantee
• Facility to issue
• Shipping Guarantee with linkage
to LC and Bills
Term Loans
• Acquisition
• Initiation
• Servicing
• Payments and Settlements
• Tracking
• Collections
• Risk Management
Cash Management
• Multi Account structure
• Pools and Sweeps
• Online Sweeps
• Multi branch
• Multi Currency
Nostro / Vostro
• Correspondent bank accounts
• Statement Generation
• Reconciliation
Letters of Credit
• Import / Export
• Revolving / Non Revolving
• Clean
• Open Ended
• Back to Back
• Standby
Financing & Hedging Services
• Pre Shipment
• Post Shipment
• Buyers credit
• Trust Receipts
• Adhoc finance
• Hedging - Bill Linkage to FX Deal

15
Back office – Finance and Accounts
Finance
and
Accounts
General Ledger
• Parameterized / Multi-level GL
structure
• User-definable MIS entities for
reporting
• Period accounting and reporting
• Multi-currency Profit and Loss
Reporting
• Flexible Reporting
- At Branch / RO / HO levels
- Reporting from any GL level
- MIS classification Reporting
Reporting
• Cost Centre Reports
• Ratio Analysis
• Cash Flow
• Receivables
• Payables
MIS
• Profitability
• Deposit growth
• Loan growth
• Non funded
• Business growth
• Relationship management
Budget

16
Channels – ATM, Internet, Telephone/IVR, Mobile

17
Analytics – Credit Risk, Market Risk, Operations
risk, channel
Performance
Management
Customer
Insight
Governance
& Compliance
Risk
Management
Treasury Risk
Credit Risk
Governance and ComplianceRegulatory Compliance (Financial Crime)
Channel Insight
Analytical CRM
Anti-Money Laundering
Trading ComplianceBroker Compliance
Fraud Detection
Operational Risk
Retail Credit Risk
Corporate Credit Risk
Portfolio Analytics
Marketing Analytics
Service Analytics
Channel Usage
Channel Performance
Economic Capital
Regulatory Capital
Liquidity Risk Stress Testing
Economic Capital
Advanced (Credit Risk)
Operational Risk
Economic Capital
Performance Management and Finance
Accounting Hub
Activity-Based Costing
ConsolidationProfitability
Budgeting and Forecasting
Hedge Management
IFRS 9 – IAS 32/39
ICAAP
Customer Profitability
Stress Testing
Asset Liability Management
Market Risk
Basel II
Retail Portfolio
Risk Models and Pooling
Funds Transfer Pricing
Loan Loss Forecasting Pricing Management
RAPM
Balance Sheet Planning
Know Your Customer
Reconciliation

18
Payments – RTGS, Fast, High Value, Normal
Receive Process Release
Currency Services
Accounting
Services Messaging Services
Settlement Services Holiday Processing Charge Services
Local Payments Cross-Border Funds Transfer
Payment
Initiation
Teller
ATM
Call center
Internet
Kiosk
POS
Mobile
Switch
Payment
network
ACH
RTGS
SWIFT
CLS
Switch
Customer Limits
Relationship Pricing
Accounts
General Ledger
Transaction
Reconciliation
Standing Orders
MIS
Reporting
Customer
Information File

19
Technical Architecture – 2 tier, 3 tier, n-tier

20
Business Logic and Entities
Data Access Components
Presentation Layer
Business Layer
Data Layer
Mobile Application
Data Source
Application /
Services
Mobile Application Server
Data Interchange
UI Components
Flat Files/
SQLite
Security
Core
Configuration
Data Synchronization
GPRS/3G/Internet
ASCII/XML
files
Technical Architecture - Illustrative
Core Banking System
DB
Server
Machine
Agent Mobile
App download

21
Software components
APPLICATION
FIDELITY
FNIS
TEMENOS
T24
Software
Product
vendor
Applicatio
n
INFOSYS
FINACLE
TCS
BANCS
REPORTING
Software
Product vendor
OBIEE, BIP
Hyperion System
SAP
BUSINESS
OBJECTS
IBM
COGNOS
SAS
ENTERPRISE
BI
PENTAHO
BI
ENVIRONMENTAL
Software
Product
vendor
MS SQL
Server
My SQLSybase
Teradata

22
HARDWARE
IBM
HP
DELL
Software
Product
vendor
CISCO
SUN
INTEL
Market Players – Hardware

23
HARDWARE
Software
Product
vendor
MS SQL
Server
My SQL
DB2Informix
Sybase
Teradata
Market Players – Environmental

24
Market Players – Application
CORE
BANKING
SYSTEM
FIDELITY
FNIS
TEMENOS
T24
Software
Product
vendor
Applicatio
n
INFOSYS
FINACLE
FISERV
ICBS
TCS
BANCS
MISYS
BANKFUSION
SAP
CORE
BANKING
JACK &
HENRY
SILVERLAKE
POLARIS
INTELLECT
SUITE
SOURCE:CELENT
0 200 400 600 800 1000 1200 1400 1600 1800
North America
Europe
APAC
LAMEA
CORE BANKING MARKET SIZE
2011 2010 2009

25
Market Players – Reporting
REPORTING
Software Product
vendor
OBIEE, BIP
Hyperion System
SAP
BUSINESS
OBJECTS
NETWEAVER
BI IBM
COGNOS
SAS
ENTERPRISE
BI
MICROSOFT
BI TOOLS
PENTAHO
BI
JASPERSOFT

26
Market Players – ATM
ATM VENDORS
NAUTILUS
HYOSUNG
NCR
TRITONDIEBOLD
WINCOR
NIXDORF

27
Market Players - Telephone
TELEPHONE
BANKING
FIS
SDS
Automated
Systems
FANAP
Euronet
Software
Solutions
Convergys
Rubik

28
Market Players - Mobile
MOBILE
FINANCIAL
SERVICES
PROVIDERS
M PESA
TRUE
MONEY
SMART
MONEY
GLOBE CASHMASTERCARD
VISA
GOOGLE

29
WHAT ARE THE BUSINESS DRIVERS
FOR SYSTEMS REPLACEMENT?

30
Drivers for Technology
Adoption
Depreciation and
Useful Life cycle
of the software
Growth of
Business/Market
Condition
Legacy System
Replacement
(usually done after 10 to 15 years)
Existing Software
Vendor Out of
Business

31
System selection process
Finalize
Vendor
Shortlist
Vendors
Conduct Initial
Evaluation
Request for
Information
Request for Proposal
Proposal Submission
Initial Shortlist
Proof of
Concept/
Product
Walkthrough
Commercial
Negotiation
BID
If non
of the
systems
qualifies
If non
of the
systems
qualifies
1 system
recommended
Award
Contract
Revisit to the
screening process

32
Point or Universal?
Niche Providers Universal Banking Solution Providers
TRADE FINANCE
SOLUTIONS
LOAN
ORIGINATION
SOLUTIONS
FINANCE &
ACCOUNTING
SOLUTIONS
TREASURY
SOLUTIONS
MORTGAGE
SOLUTIONS
TRADE
FINANCE
MODULE
CORE
MODULE
LOS
MODULE
DIRECT
BANKING
MODULE
EMS
MODULE
LOANS
MODULE

33
• The vendor should have a verifiable track record of:
 financial stability
 staff stability
 customer satisfaction (contactable client references)
 accurate & on-time product implementation
 accurate & on-time delivery of enhancements and fixes
• The vendor must provide adequate on-site support during the
analysis and implementation phases
• The vendor must provide adequate ongoing client service support in
the geographical locations and/or time zones of the planned
implementation
Process of Evaluating technology vendors (Cont…..)
Company Profile

34
• The product should support list of current and future planned products
• The system must support global processing
– Multi-currency
– Multi-entity
• The system must support strategic business initiatives
• The vendor solution must be:
– Modular
– Component-based
– Open (communications via industry standards)
• The vendor solution must comply with technology standards for hardware & software
• The vendor solution must support real-time data transfer between applications
• The vendor must have a documented process for bug reporting and fixing, system
enhancements and release schedules
• The vendor solution must support the projected transaction volumes & metrics
Functionality Fit
Technological Fit
Process of Evaluating technology vendors (Cont…..)

35
• Initial tabulation of RFP results
• Working team review of tabulation and selection of vendors for on-site
demos
• First round of on-site demos for broad product overview
• Working team review of vendors post first round demos & selection of
preferred vendors for second, in-depth review
• Final recommendation
Vendor short list review process
Process of Evaluating technology vendors

36
RFI / RFP – Role of consultants
CONSULTANT
PROGRAM
MANAGEMENT
PROJECT
GOVERNANCE
VENDOR
EVALUATION
SCORING of
RFI/RFP
SOFTWARE
Pricing Profile of
Team
Domain
Knowledge
Local Market
Knowledge
Track Record
Criteria for Choosing
Consultants

37
POC / PWT
PRODUCT
WALKTHROUGH
AGENDA/
SCHEDULE
TESTCASES
LIVEWIRES/
FRAMES
CONDUCT PWT
RESULTS/
EVALUATION
RECOMMENDATION

38
Components of a commercial proposal
Core
Banking
System
Cost
Additional
Technology
Licenses
Cost
Hardware
Cost
Components
of a
Commercial
Proposal
Application
License Fees
Annual
Maintenance
Fees
Implementation
Fees (Migration,
Customization,
Training)
Others
(Onsite Support,
Out of Pocket
Expenditure)
Database
server
, Reporting
Database
Server cost
Application
Server, Web
Server &
Reporting
Server Cost
UAT/DEV Server
and Secure
Backup Cost
Other Value Add
Costs like Real
User Experience
Insight Cost
Production Site Cost (Database,
Application & Reporting
Servers, Webserver, Storage
System, Back Up Server, Other
Value Add costs
Disaster Recovery Site Cost
(Database, Application &
Reporting Servers,
Webserver, Storage
System, Back Up Server,
Other Value Add costs
UAT/DEV
Server Cost

39
Model adopted by market players
Product
Licensing
• Component Licensing with user based, usage based and enterprise based
licensing metric
• Custom Applications Suite
• Enterprise Licensing
Product
Implementation
• Fixed Price – deliver the project on agreed cost & timelines, based on
mutually agreed acceptance criteria
• Time & Material – suited for ongoing projects where there is a need to
maintain a team to service the regular flow of requirements
Application
Management
• Flat Rate – yearly renewal with defined SLAs
• Percentage based – based on a certain percentage of licensing fee,
renewable yearly with defined SLAs
P
R
I
C
I
N
G
M
O
D
E
L
S

40
Project Budget - Illustrative
$293,015
$64,463
$770,750
$22,250
$121,000
$135,000
$- $400,000 $800,000
APPLICATION SOFTWARE…
SUPPORT FEE
TOTAL IMPLEMENTATION COST
TRAINING
ON-SITE SUPPORT
OUT-OF-POCKET EXPENSES
Core Banking System Cost
$259,317
$110,508
$25,417
$- $100,000 $200,000 $300,000
PRODUCTION SITE
DISASTER RECOVERY SITE
UAT/DEV SERVER
Hardware Cost
$549,549
$57,096
$- $200,000 $400,000 $600,000
MANDATORY
COMPONENT(SERVERS, SECURE
BACKUP)
VALUE-ADD COMPONENTS
Technology Licenses Cost
$1,406,479 ,
58%
$606,645 ,
25%
$395,242 ,
17%
Overall Budget for Project
Core Banking System
Cost
Technology Licenses
Cost
Hardware Cost

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Steering Committee OC Status
reviewTask I Mgt Comm introduction meeting Mile stone based sign offsW Workshops
Key Activities
System Installation
User Acceptance
Testing (UAT)
Go-Live
Business
Requirements
System Configuration
PWT & User
Training
Application UBS installation
Environment set up for Training,
Map products, chart of accounts , static parameters etc
Mobilise Implementation vendor team and gather artefacts
from Jamuna Bank
Baseline project plan and align project team (Implementation
vendor & Bank)
Engage Core team in User Training
Product Walk through to Senior management
Prepare test strategy, UAT on base product, data conversion
Test cases, scripts, run charts, logical days, expected results
Regression testing etc . UAT on migrated data
Production Environment deployment
& preparation
Project Initiation
Live cut-over
Post-Live &
Handover to
Software Product
vendor
Post-live Production Support
Analyze bank products & services
Interfaces & reports (if any) SIT / Unit Testing
Present findings, discuss handover & next steps
1 112 3 4 5 76 8 9 10 12 13 14
Month starting September 2013
S
S
S
S
SW W
W W
W WW W
W
W
W
Project Sign off
W
W
W
W
S
W
S
S
Project Implementation – Illustrative schedule

42
Pre-requisites
 Contract Signing
 Identification of Core
team from the bank
 Project Plan Review
and Rework
 Hardware, Software
and Work Facilities
Readiness

43
Illustrative Implementation methodology
MigrateTestDesign
STAGEKEYACTIVITIESKEYDELIVEABLES
PLANNING
PRODUCT WALK THROUGH
GAP ANALYSIS
Application INSTALLATION
Project Initiation Document
Product Walkthrough
document
TRAINING DATABASE
PRODUCT CONFIGURATION
AND STATIC SET UP
SYSTEM PARAMETERIZATION
SHELL DATABASE
UAT DATABASE
TEST STRATEGY AND PLANNING
TESTING
ACCEPTANCE AND SIGN OFF
1
Initiate
2
DEPLOY
PARALLEL RUN
HANDOVER AND SUPPORT
POST IMPLEMENTATION
REVIEW
Implementation methodology is based on a phased delivery based approach leveraging best practice tools and
methodologies
Training agenda / Calendar,
feedback forms
Configuration templates
4
5
3 Application Installation
manual
Test Strategy Document
Test Scripts
6
7
8 Defect log Reports
Migration Strategy Document
Handover Report to Software
Product vendor
9
10

44
Overview
Implementation methodology Keynotes
 Application domain
 This Quick Reference Guide describes Implementation vendor’s methodology for
systems implementation projects. It covers the whole project lifecycle from initiation to
deployment
 The methodology is designed to be scalable and portable: it can be applied for large
programs as well as for relatively small projects
 This delivery methodology has been developed keeping process and business
functions as the necessary elements to bridge the gap between the business
requirements of the bank and the package to be implemented
 Implementation of core banking systems is expected to improve operational
efficiency, increase savings, improve control and enhance service in the back-
office of financial service firms
 Structure and terminology
 The methodology is structured along programs, projects, stages, activities, tasks and
steps
 A typical project consists of 5 stages: initiation, design, test, migration and
deployment. Each stage consists of one or more activities. Activities consist of tasks.
Tasks can be split in steps. Tasks lead to well-defined deliverables
 Guidance
 This methodology does not impose a rigid framework on the project
team. Instead it is intended to support and provide guidance to their
sound business judgment in arranging the project work into
manageable chunks.
 The methodology allows the project manager to structure the work
freely along the activities and tasks, while preserving complete
flexibility and freedom: activities, tasks and steps considered
superfluous for the project at hand can be omitted. Activities can be
re-iterated as needs occur.
 This methodology is strong on sequence of activities and information
flow, but is less articulated in terms of “who does what” (i.e.
role/action perspective). This is intentional since program structure is
dictated by the client’s organization and the terms of Implementation
vendor’s assignment, which vary considerably from project to project.
 Deliverables are marked mandatory (M), recommended (R) or
optional (O). Again this is merely based on industry best practice and
intended to guide the sound business judgment of the project team on
their specific project.
 The one concrete objective targeted with this methodology is to
establish a common terminology amongst project stakeholders,
leading to a mutual better understanding when discussing project
deliverables, assignments, status and progress.

45
Profile of Implementation team from Bank
BANK’sIMPLEMENTATIONTEAM
BUSINESS UNIT HEAD
FINANCE TEAM
RISK MANAGEMENT
TEAM
OPERATIONS TEAM
TECHNICAL TEAM
MARKETING TEAM
SYSTEM
ADMINISTRATOR
REGULATORY and
COMPLIANCE TEAM
QUALITY
MANAGEMENT TEAM

46
Deliverables
 Product walk thru
document (M)
 Feasibility analysis (O)  Requirements list
(functional & non-
functional) (M)
 Use cases (diagrams &
descriptions) (M)
 Walkthrough results (M)
 Requirements
document sign-off (M)
 Increment and delivery
plan (M)
2.1 Define objectives of
bank
2.2 Describe current
technology environment
2.3 Define budget and
staffing constraints
2.4 Define integration
requirements
2.5 Map proposed system
against objectives,
constraints,
environment &
integration
requirements
2. Feasibility study
(optional)
3.1 Define stakeholders
(bank, Software Product
vendor, Implementation
vendor, III party
vendors etc)
3.3 Organize interviews
(Finance, IT, Retail,
Corporate, Payments,
Operations)
3.4 Discuss current product
and service offerings
3.5 Gather future business
requirements
3.6 Develop functional
requirements
3.7 Develop non-functional
requirements
3.Requirements
elicitation and
specification
5.1 Group new
requirements into
Phases based on
feature criticality
5.2 Define iterations within
each release
5.3 Produce a release
based delivery plan
5.4 Review task
deliverables
5. Plan releases
4.1 Organize requirements
walkthroughs by
stakeholder and
viewpoint: check for
validity, consistency,
completeness, realism
and verifiability.
4. Requirements
validation
1.1 Define how system will
be demonstrated
1.2 Define how traceability
from system features to
business function
mapping will be handled
1.3 Get a high level
understanding of the
bank (Vendor, Public
domains etc)
1.4 Confirm deliverables
1.5 Plan for project phase
(Estimate workload, resource,
schedule, baseline plan)
1. Planning
Product walk through
Senior Managers, BU Heads etc

47
Product walkthrough
Keynotes
 Key deliverable contents
 Application Product walkthrough Document
 Background of the bank
 IT Landscape (Systems in production mode)
 Details of Legacy system
 Bank structure
 Number of branches to be rolled out
 Static parameters
 Business units to be covered
 Product requirements under various asset, liability and service
classes
 Interface requirements
 Classification of gaps (CFL, NTH etc)
 Prerequisites
 Sales note / work order
 Interview schedule with business users
 Objectives
 Mapping of Application system with business requirements
 Documentation of gaps
 Classification of gaps
 Effort required to bridge the gaps
 Guidance
 PWT is a critical activity as part of systems implementation.
This activity provides the bank with a first hand understanding
of the product features
 From a implementation perspective it provides a first hand
understanding of whether the system can be implemented,
whether any work around is necessary
.

48
Application Installation
1.1 Ascertain whether bank
has procured the
necessary hardware
1.2 Ascertain server is in
the bank premises and
ready to be
commissioned
1.3 Gather information on
hardware architecture
(Model, Server sizing,
space availability, disk
partitioning etc)
1.4 Identify IT resource/ for
co-ordination
1. Planning
2.1 Ascertain operating
software has been
installed
operating software
installed (UNIX,
Windows, version etc)
2.3 Ascertain environmental
software has been
installed
Software Product
vendor version installed
and client software
(Developer 2000)
2.Operating and
environmental software
installation
4.1 Invoke Application from
client machines
4.2 Logout and Login
4.3 Login in parallel from 20
or 30 machines
4.4 Check for performance
of the system
4. Testing
5.1 Inform IT / Project
management office of
bank on completion of
installation
5.2 Inform Software
Product vendor on
completion of
Application installation
5.3
5. Release
3.1 Install Application
3. Application installation
Deliverables
 Sign off from Bank (M)
 Installation Manual (M)

49
Application software installation
Keynotes
 Application installation Document
 Hardware details (Server size, configuration, partitioning etc)
 Operating software installation (Windows, Unix etc)
 Environmental software (Software Product vendor version,
Developer 2000 etc)
 Citrix installation
 Prerequisites
 Operating software installed
 Environment al software installed
 Objectives
 Application access for bank users
 Get sign-off for installing Application
 Guidance
 Operating and environmental software installation is outside the
scope of Implementation vendor
 Install the version shipped by Software Product vendor from the CD
 Inform bank (PM) and Software Product vendor (PM) over email on
completion of this activity
 Obtain physical sign-off from Bank project manager
.

50
User Training – Functional, Technical
1.1 Ascertain whether bank
has identified core team
to be trained
1.2 Ensure core team has
representation from all
departments
1.3 Identify infrastructure
requirements
(Application installation,
desktops, seating,
room, projectors, white
board, flip charts, user
manual, training ppt’s
etc)
1.4 Prepare training
calendar
1. Planning
2.1 Phase out the training
program as core
components and
business
2.2 Use generic case study
to explain the features
and navigate though
the system
2.3 Prepare scenarios to
explain all plausible
business conditions
2.4 Prepare exercises for
hands on session
2.5 Obtain feedback
2.6 Review feedback
2.7 Plan for additional
training
2. Functional training
4.1 Identify users for add
on training from core
group
4.2 Identify and document
areas where add on
training is required
4.3 Conduct add on training
4.4 Obtain feed back
4.5 Review feed back
4. Additional Training
5.1 Obtain sign off from
Bank project manager
5.2 Inform Software
Product vendor project
manager on completion
of user training
5. Signoff
3.1 Modules to be covered
(Security mgmt system
– SMS, EOD
processing)
3.2 Data Back up
procedures
3.3 Data purging
procedures
3.4 Prepare exercises for
hands on session
3.5 Obtain feedback
3.6 Review feedback
3.7 Plan for additional
training
3. Technical training
Deliverables
 Training calendar (M)  Feed back forms (M)
 Additional training
agenda (O)
 Feed back forms (M)
 Additional training
agenda (O)
 Training agenda
 Feed back forms (M
 Sign off (M)

51
User training
Keynotes
 Application training
 Functional training
 Technical training
 Auditor training
 Case studies for training
 Exercises for hands on session
 Prerequisites
 Application training database
 User manuals
 Module wise training PPT’s
 Identification of core group of users to be trained from the bank
 Objectives
 Good structural understanding of Application for core group
 High degree of conceptual and functional clarity
 Good grasp of technical architecture
 Guidance
 Training is a critical activity of product implementations. On
this hinges the success of other stages of the project.
 Morning sessions have to be instructor led with PPT’s and
other training aids as necessary. Fore noon sessions to be
focused on hands on training
 Training structure and orientation to be based on business
process of the bank for easy understanding
 Business cases to be developed based on PWT
 Obtain feedback from the users at the end of every session
 Review training style and content based on feed back
 Obtain physical sign-off from Bank project manager

52
Application System configuration, Parameterization
Finance, IT and Business units
1.1 Finalize interview
schedule with various
stakeholders (Finance,
IT, Audit etc)
1.2 Keep sample product
configuration document
and explain the way
product has to be
configured
1.3 Identify SPC for
various business units
1.4 Keep all upload utilities
ready for use
1.5 Identify IT resource for
co-ordination
1. Planning
2.1 Ensure representation
is there from all
stakeholders
2.2 Provide a full list of
static data parameters
to be configured
2.3 Explain the implications,
pros and cons of
designing the static
parameters in different
approaches
(operational efficiency.
MIS etc)
2.4 Refine static data
parameters once data is
obtained from all
stakeholders
2. Static data definition
and configuration
4.1 Upload all static
parameters using tools
and utilities developed
4.2 All business products to
be manually configured
4.3 Identify IT resources for
upload and manual
definition of products
4.4 Keep all static
parameters and
products unauthorized
except the mandatory
tables
4.5 In parallel keep a mirror
image of FC database
4. Application Database
population
5.1 Release Application
database with
populated data to IT
and business users
5.2 Provide FC and BO
reports to ensure
accuracy of data
uploaded and manually
configured
5.3 Modify erroneous data
to reflect correct values
5.4 Post sign off authorize
all records
5. Review and Sign off
3.1 Ensure business users
and IT are represented
in every session
3.2 Explain product features
3.3 Match business users
expectations with
product features
3.4 Document gaps
3.5 Review product
parameters
3.6 Refine and enrich
product configuration
with incremental data
3.4 Iterate the process to
ensure alignment of IT
and business
3. Business products
definition and
configuration
Deliverables
 Interview schedule (M)
 Static and product
configuration templates
(M)
 Static data
configuration templates
(M)
 Sign off on static data
(M)
 Product configuration
templates (M)
 Sign off on product
data (M)
 Application Database
with populated data (M)
 Mirror image of
Application database
(M)
 Obtain sign off (M)

53
Application system configuration
Keynotes
 Static parameter templates
 Product configuration templates
 Prerequisites
 Application shell database
 Identification of owners for static, GL and product data
 Objectives
 First draft of Application database with data configuration as
specified by the bank
 Users of system get a first hand understanding of the system
 Paves the path for further stages of the project
 Guidance
 Time consuming activity as the bank has to vizualize exactly
their requirements
 Extreme tact and patience is required from the project staff to
configure the product to suit the needs of the bank
 Complex areas in general are GL structure and MIS
requirements
 Upload data in Application system and allow end users to
manually configure products only after sign off is obtained in
hard copy
 Always keep a mirror image of the data configured in a
unauthorized status
 Obtain sign off for uploading data in Application (Provide
Application and BO reports to ensure accuracy of data)

54
User acceptance testing – Functional, technical –
stress, volume, connectivity
1. Prepare overall test
strategy
1.1 Define functional test
cycles
1.2 Define non-functional
test cycles
1.3 Define operational test
cycles
1.4 Define level of testing
1.5 Confirm testing tools to
be used
1.6 Define defect
management procedure
1.7 Review task
deliverables
1.8 Adjust/refine
acceptance criteria
2. Prepare detailed test
plans
2.1 Review increment
milestones
2.2 Determine test
dependencies
2.3 Determine entry criteria
per cycle
2.4 Determine exit criteria
per cycle
2.5 Determine resource
requirements
2.6 Determine test
environments
2.7 Plan each cycle
2.8 Review task
deliverables
2.9 Support preparation of
detailed test plans
5. Execute test cycle
5.1 Review entry criteria
5.2 Execute test scripts
5.3 Verify results
5.4 Log test execution
5.5 Log defects
5.6 Run test statistics
5.7 Review exit criteria
5.8 Support execution of
test cycles
5.9 Perform defect tracking
and bug fixing
3. Prepare test
scenarios
3.1 Refine business test
scenarios
3.2 Define non-functional
test scenarios
3.3 Define operational test
scenarios
3.4 Verify requirements
coverage
test scenarios
4. Prepare test cycle
execution
4.1 Prepare test scripts
4.2 Verify path coverage
4.3 Prepare initial data
4.4 Prepare script data
4.5 Prepare expected
results
4.6 Define test statistics
test cycle execution
4.8 Organize defect
tracking and bug fixing
Deliverables
 Test strategy
documents (M)
 Refined acceptance
criteria document (R)
 Test cycle definition
document (M)
 Detailed test plan per
cycle (M)
 List of test scenarios
(M)
 Detailed test scenarios
(M)
 Test scripts (M)
 Test environments (M)
 Initial environment data
(M)
 Defect tracking
procedure (M)
 Test execution log (M)
 List of defects (M)
 Test cycle sign off (R)
 Weekly defect tracking
reporting (M)

55
User acceptance testing
Keynotes
 Test strategy document
– Scope of tests
– Test cycles breakdown
• Sequence
• Scope per cycle
– Overall test schedule
• Preparation and execution start and end dates
• Dependencies
– Test environments
• Environment definition per cycle
– Resources
• Teams involved
• Roles and responsibilities
– Tools and procedures
• Defect management
• Control
• Reporting
– Risk assessment
• Major risks and mitigation plan
 Test cycle definition document
– Detailed scope of test cycle
• Validation areas
• Test scripts linked to requirements
– Test cycle schedule
– Test environments
• Detailed test environment definition
– Resources
• Individual people involved
• Roles and responsibilities
– Cycle entry criteria
– Cycle exit criteria
 Prerequisites
 Solution test completed successfully.
 Test environments set up before starting test execution.
 Objectives
 Assess whether the solution matches the requirements.
 Perform defect tracking and bug fixing.
 Guidance
 Most of the tasks are under the responsibility of the Client. They are
generally performed by the Client himself.
 Plan for following test cycles as you see fit: functional, cross-system
integration, operational, migration, performance, volume, recovery, security,
archiving, clean-up, system monitoring.
 Provide test scripts for both positive and negative testing. Especially focus on
boundary cases.
 Plan for environment setup and dry-run periods.
 Plan for rework and retest periods.

56
Migration of Data
Legacy to Application
1. Planning / Initiation
1.1 Define boundaries of static
data conversion (CIF,
Accounts) with detailed
scope
1.2 Validate stakeholder buy-in
to the above conversion.
1.3 Plan a phased approach for
data migration
1.4 Plan for static & Financial
data migration separately
1.5 Prepare business area wise
migration strategy
1.6 Plan for month end
migration (preferable)
4. Migrate Static data
4.1 Prepare migration scripts to
load static data into
Application
4.2 Migrate data into Application
4.3 Test the scripts multiple
times for the accuracy
4.4 Perform business validation
test by inputting basic
transactions.
4.5 Reconcile 100% data
accuracy
4.6 Generate migration reports
and sign-off with
stakeholders
2. Gather data
requirements
2.1 Define data management
principles & standards from
a Business and/or
Technology perspective
2.2 Agree and sign-off on the IT
systems and business areas
in scope for migration
2.3 Define business rules and
quality requirements
2.4 Map as-is data models and
Document to-be data
models
2.5 Define processes for
cleansing and testing data
quality
3. Cleanse and test data
3.1 Map data fields from
existing legacy systems to
Application
3.2 Codify data quality rules into
usable scripts
3.3 Cleanse and test data
quality using test scripts
3.4 Agree and sign-off
“passed” data to be
migrated
3.5 Archive remaining “failed”
data for audit purposes
Deliverables
 Sign-off scope definition
document
 High-level data migration
plan
 Data migration rules and
acceptance criteria
document
 Data dictionary with legacy
to FLXECUBE field mapping
 Test scripts for data quality
 Data quality assessment
reports
 Data migration reports
 Obtain sign-off
5. Financial data Conversion
5.1 Prepare migration scripts to
load transactional data into
Application
5.2 Migrate data into Application
5.3 Test the scripts multiple
times for the accuracy
5.4 Perform business validation
test by inputting basic
transactions.
5.5 Reconcile 100% data
accuracy
5.6 Generate migration reports
and sign-off with
stakeholders
 Data migration reports
 Obtain sign-off

57
Migration
Keynotes
 Uploaded live data in Application
 Migration reports for each module
 Prerequisites
 Data in format specified needs to be provided by the bank
 Identify SPC who will sign off on converted data
 Objectives
 Post migration ensure balance sheet of legacy system matches with
Application
 If balance sheet does not match ascertain reasons and document
the same
 Guidance
 Conversion of historical transactional data should be avoided
 Balances outstanding as of a particular date should be migrated
 Plan for conversion on a month end after running EOD in the
legacy system
 Ascertain whether the migration can be carried out on a Friday
 Normal Business operations might be disrupted – Plan for this event
with the bank and inform appropriate stake holders
 Prepare strategy and approach for usage of legacy system
(Exceptions handling. Past client behavior etc)
 Conversion account should reflect a Zero balance post migration
 If any balance is outstanding ascertain the reasons for the same
 There are many conditions due to which balance sheet between
legacy system and Application might not match
 Primary differences arise due to Foreign exchange rates used,
Interest accrual methods, holiday treatment etc
 Use data provided in templates for conversion and Migration reports
for ensuring accuracy of migration exercise
 Obtain sign off on template sheets which contain data to be
migrated and on Migration reports

58
Live operations and parallel run
Production Environment
1. Planning
1.1 Identify Helpdesk
1.2 Identify SPCs for Ops
1.3 Define approach for
booking transactions in
legacy system
(Manual/Upload).
1.4 Educate user to book
transactions in Application
and then legacy system
1.5 Asses Critical customer
touch points
1.6 Approach for reconciliation
1.7 Agree on period for parallel
run
1.8 Plan for mass customer
communication (Mails, Web
channels)
1.9 Plan for additional staff
deployment
4. Historical Data & Archival
Policy
4.1 Plan for exceptional
situations for accessing
information in legacy system
like customer statement
2. Parallel run
2.1 Execution of daily business
transactions in Application
and then Legacy system
2.2 Reconcile no of transactions
per business area
2.3 Match the Customer
account & GL Balances
(Trial Balance, P&L balance
sheet)
2.4 Match Limit utilization
2.5 Critical areas under
observation – Funds under
clearing, Customer
statements/advices, Nostro
statements, Swift messages
2.6 Analyze the difference if any
and document reasons
2.7 Document & track the
problem over few days
2.8
3. Phase Out Legacy
System
3.1 Suggest alternative
approaches for the
unresolved issues.
3.2 Follow up for business
approval
3.3 Get feedback/sign off from
each business area for final
cut over
3.4 Post cut over observations
on central bank /HO
reporting
3.5 Define access rights for the
legacy system as per legacy
policy
Deliverables
 Cut Over Approach
document
 Issue tracking sheet
 Sign Off templates
 Reconciliation Template

59
Live operations and parallel run
Keynotes
 Key deliverable contents  Prerequisites
 Help desk with named resources
 Identify resource from bank who will sign off on the reports for
accuracy and stream lined operations
 “Cut over Approach document “sign off
 Objectives
 Bank operations to run smoothly
 Increase end user comfort on the Application
 Ensure transition dissonance is minimal
 Manage / end user expectations
 Guidance
 Very sensitive period as end users might have a resistance to
change
 Extremely taxing time as every transaction needs to be entered in to
both the systems
 Ensure priority of capturing transactions in Application over legacy
system.
 Focus on resolving issues related to customer touch point s like
teller ops, advices, internet / ATM channels.
.
 Helpdesk Resource Names & responsibility Area
 SPCs (Bank core Team) & responsibility
 Reconciliation format – Module, No of transactions, status
 Customer mass Communication format & dates

60
Support Management – SLA Process and procedures
1. Planning
1.1 Engage in discussions with
Senior Mgmt from the bank
and Software Product
vendor towards establishing
parameters and guidelines
for smooth transition from
project to support
1.2 Process notes for handover
to be gathered from iflex
1.3 Introduction/alignment with
key resource SPOC from
iflex Global support and
align the resource with the
Bank Senior management
4. Transition to Global
Support
4.1 Project resources will
continue to remotely provide
information/support for a
short time to ensure smooth
transition and plug all
project specific knowhow
gaps
4.2 Ensure smooth and crisp
knowledge transfer from
project phase to Global
support
2. Project Handover to Global
Support
2.1 Analyze all open
incidents/defects from the Project
phase and ensure clear
documentation and status
handover to iflex
2.2 Provide iflex resource with
process documentation on
release methodology, incident
handling/resolution/escalation
etc.
2.3 Documentation/reference check
points from User Acceptance test
scenarios to be provided for
future reference
2.4 Change request pending
approval/further steps,
background/documentation to be
provided to iflex
Deliverables
 Documentation/templates for
issues/incidents/defects and
Change requests
 User Acceptance sign off
and test scenarios for future
reference
 Project sign-off
3. Project Phase out
3.1 Formal phase out of Project
resources
2. Project Handover to iflex
support/Global Support

61
 Handover Document
 Background of the bank
 IT Landscape
 Application installation Document
 Product Design Document
 Prerequisites
 Live sign off
 Bank is operating in production environment for at least a week
 Objectives
 Implementation vendor implementation scope of work ends and
Software Product vendor to commence post-live support
 Get sign-off from Software Product vendor for handover to global
support team
 Guidance
 Only solution specific documentation and knowledge transfer is
covered here.
.
Handover and post live support
Keynotes

62
Questions & Answers

IT in Banking v0 2

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