TrustBank Implementation Case Study

Transcription

1 TrustBank Implementation Case Study Chandrapur District Central Co-op Bank Ltd. 3 rd October 2012

2 Agenda Overview of Bank Reasons CDCC changed their legacy system Problems CDCC faced previously Preliminary Business Requirements Scope of Implementation Project Details Transition Approach Implementation Business Model, Business Strategy Infrastructure Management Post Production Support Banking community Implementation Take-Away Benefits of TrustBank introduction Higher ROI, lower TCO Program Organization Structure Milestones and Phases Summary

3 Overview of Bank Chandrapur District Central Co-operative Bank is the class A Bank. The Bank is mainly involved in the agricultural financing and government fund distributions. Apart from it bank is also functioning in the area of consumer lending and corporate lending which contributes more than 35% of the bank s total revenue. It is one of the largest bank in the Region by assets, and by number of locations. As per the earlier guideline through RBI, the bank was restricted to operate within the district. Being a Class A Bank and recent Audit by RBI they are allowed to operate in multiple districts across entire state. Size of bank: Asset Size over 16.9 Billion INR. Number of branches 90 branches ATM Terminals 25, RTGS/NEFT - YES Number of Customers 8,15,029, Number of Account 8,55,746 active accounts (of which 52,612 corporate & 8,03,134 retail/ individuals)

4 Overview of Bank Products offered by the bank The full range of products for retail & corporate (Leasing, Gold loans, Hire purchase, syndicated loans, Regular loans, Agric-non agric loans etc.), treasury, Government funds distribution through PACS, etc. A set of different channels for offering bank s services & products in real time Cards, National Payment (NEFT/RTGS), internet banking retail & corporate, SMS/ notifications, Scoring and Business Intelligence, etc. Reasons for the implementation Migration from existing platform due to old legacy system/ another system/ manual work being unable to support the banks rapid expansion (doubled, in asset size, in one year). We have keep on upgrading the banking system with the latest technology in the market Existing platform did not support integration with new channels internet banking, on-line card authorization, mobile phone payments, etc. Need for a more robust platform and availability of resources for its support and further development. Need for quicker time for market fierce competition in a rapidly expanding financial services market. The bank s desire to change the bank s business and operational model from de-centralized to centralized.

5 Overview of Bank Historical Notes 1998: TSS started implementation of VB-5 Version for 7 branches (Out of 60) 2001: 7 branches converted to VB-6 Version and 30 branches order given to other vendor and others were manual 2009: 7 Branches converted to CBS + Migration of 30 branches of other vendor because of the unsuccessful delivery for 30 branches (TSS got all 37 branches). 2011: CBS Live in all the 86 branches and 8 extension counters with their datacenter at Head Office.

6 Reasons CDCC changed their legacy system The bank desired to modernize their business model and processes to provide efficient, less time and resource consuming, products and services. The bank needed a standardized IT platform and infrastructure in line with CDCC Bank IT policies and Central Bank s guidelines, procedures and requirements Old legacy system from other vendor, unable to integrate in real time with satellite systems, Cards, Internet banking, SMS, Mobile phone Non-scalable solution, unable to handle the increase in usage from the other vendors. Lack of functionality desired, e.g. automatic provisioning, auto loans liquidation, etc from the other vendors. Very slow time to market new products from 3 to 6 months minimum vs. 3 to 8 weeks currently. No available resources for system upgrades (the only bank on that system) by other vendors.

7 Challenges faced for desktop/ Distributed database system. Numerous problems, such as: Inability to integrate with new electronic channels, scoring systems, etc. Inability to introduce new competitive products to market, such as flexible mortgage, consumer loans, and various deposits Inability to process in Real time card and internet banking transactions Inability to produce in short time sophisticated reporting and analysis both for internal and external usage

8 Preliminary Business Requirements CDCC bank started in early Looking for: Easy integration/interfaces Depth and breadth of functionality Quick time to market Internationally recognized vendor/solution with local presence having expertise in Agric financing, consumer lending, regulatory reporting and support in remote locations in India. Scalable and Capable solution to meet their expansion plan.

9 Scope of Implementation Lines of business & Back Office Operations Retail Current Accounts Savings Accounts Term Deposits Retail Loans, Syndicated loans Structured Deposits Cheques National Payment Network Statutory & Compliance reports HR Management & Payroll Inventory Management PACS/ SHGs funding Credit Appraisal Budget SMS & Internet Banking & Mobile Banking

10 Project Details Core Solution Stack implemented Our Role SI involved Trust Systems & Software Consultants involved (from Bank side) Private consultants Relationship between, SI, Consultants and bank back to back or independent contract Independent consultants to monitor the project progress appointed by the bank. Contract between Banks and Trust Systems for CBS Implementation Roles and Responsibilities of different parties Trust Systems & Software system integrator and implementer, Customization, technical support and consultancy Consultants Coordination and project monitoring.

11 Transition Approach Implementation approach Phase wise implementation approach with extensive stress testing and three full mock conversions. The bank was running on multiple system, manual and splitting into branches was difficult, splitting of national settlement, central bank reporting, reconciliation and consolidation would have been very difficult and resource hungry. The same would have prolonged the time for implementation and contradict the bank s desire for full conversion and re-organization within 12 months.

12 Implementation High level time lines for different phases PWT 5 weeks done by TSS for all branches users GAP analysis 6 weeks done by TSS along with the bank for change management from Desktop version to web version of CBS System initial set-up and parameterization 14 weeks done by TSS for all branches HW sizing and procurement (in parallel) 13 weeks done by TSS and IBM IT infrastructure and comm. New lines and set-up (in parallel) 22 weeks done by Bank and TSS System s parameter and products testing 12 weeks done by TSS, the Bank and Consultants Additional set-up and parameterization 2 weeks done by TSS Systems Integration testing (incl. parameters and products) 6 weeks done by TSS and bank Training to IT staffs (in parallel) 4 weeks done by TSS Mock migrations and stress testing 6 weeks TSS and bank End user training (in parallel) 7 weeks done by TSS Post Go-live support 8 weeks done by TSS

13 Implementation For each phase Deliverables of the phase Documents and sign offs for each of the above phases Resources (from TSS as well as bank) involved numbers, types (technical, functional, PM, testers etc) TSS technical 10 man months TSS Domain Experts 60 man months TSS functional 80 man months TSS PM 12 man months bank PM 12 man months CDCC bank full time project team along with consultant 36 man months CDCC bank part time project team 90 man months Oversight management strategies used Project sponsors (bank s CEO and COO) introduced Project Steering Committee meeting fortnightly PRINCE II methodology followed Any bank specific step Compliance with RBI/ NABARD standards and Guidelines

14 Implementation Data Migration High level steps involved strategy, data mapping, utility preparation, extraction from legacy to flat file, file to TrustBank, mock runs, testing, etc. Data migration strategy developed by TSS, approved by CDCC bank and consultants Data mapping conducted by TSS and approved by bank and consultants Data uploads to TrustBank conducted by TSS, verified and approved by CDCC bank and consultants Complete data is migrated to TrustBank Challenges faced data enrichment, data cleansing etc Extensive and constant data cleansing, verification and reconciliation conducted together with CDCC Bank and Consultants Large proportion of additional client, loan, collateral data was missing in the core system and had to be gathered for upload to TrustBank

15 Business Model, Business strategy Program Organization was set up in the bank with 30 sub-projects defined with project teams and responsible parties. Before implementation bank was totally decentralized- each branch was like a subsidiary bankadmin functions, IT, all separate. Defined a new business model and branch model, restructuring and centralizing important functions. Restructuring of all functions were going in parallel for 1-2 months.

16 Infrastructure Management Low-Mid (Expandable) level production hardware layout Type of machines used IBM X3650 M3 series Windows 2008 Server OS, SQL Server 2005 for database Six Core CPU for production with 64GB RAM 2 Nos., IBM X3650 M3, Windows Server 2008 OS, TrustBank HOST Quad Core CPU 32GB RAM, Same Configuration for Backup System (for Application Server and Database Server) SAN Storage, Firewall, Manageable switch and other Datacenter components used. Location of different machines All HW located in CDCC bank Production data center at Head Office with extra servers for SMS Banking, Internet Banking and ATM Interface Network details Leased line connectivity from BSNL, Tulip, Tata used at 64KBPS to 256KBPS based on the user numbers AND 4 MBPS leased line used at Datacenter and standby 4 MBPS to connect with DR.

17 Infrastructure Management Responsibilities for infrastructure Hardware Sizing TSS and IBM Procurement CDCC bank and TSS (an IBM authorized reseller) Setup TSS Maintenance IBM & TSS Support IBM and TSS Third party software is maintained and supported by the respective software vendor in accordance with the CDCC bank internal rules and procedures Trust Systems & Software (all in compliance with CDCC bank internal IT policy, rules and procedures) Setup TSS Maintenance TSS Support TSS

18 Post Production Support Type of Support Local Tools used Help desk system and TeamViewer are being used for issue tracking and resolution Standard support methodology used Support infrastructure Temporary access to the Production Environment is granted only for applying patches and new functionalities Permanent access to Test & Dev. Environments incl. at site and remote Access to data only access to Test & Dev environment data Data patches TSS was responsible; with temporary access being granted on a need to have basis

19 Post Production Support Methodology used for moving a fix to production apply to pre-production, test and move A fix or new functionality is first applied in Dev. Environment and tested by us The fix or functionality is then applied in Test Environment by us and tested by the bank After bank s approval a temporary access to production environment is granted to us for applying the fix/functionality

20 Banking community Show cases and visits Since Go-live there has been several site visits by the various banks from India as well as from other countries. CDCC Bank and its management are quite happy with hosting such visits Success Story and the growth of the bank is very well appreciated by the external auditors and the RBI/ NABARD auditors.

21 Implementation Take-Away What did we do right? Close tracking Preventing scope creep Regular visibility to all stake holders Daily discussion of issues A wider consultancy on operational issues and processes and ways to optimize them A wider support and consultancy for issues outside the project scope but relevant for the overall implementation IT infrastructure, network set-up, IT processes and procedures What could we have done differently? Did not insist on the creation of full time dedicated bank implementation team from the start of the project. The subsequent hand-over of responsibility from us to the bank was longer than desired. Following from the above, it also took longer for the bank personnel to get accustomed to the new processes and applications

22 Benefits of TrustBank implementation Interfacing with Multiple Delivery Channels Domestic Payments enabled staff reductions and faster and more reliable services to customers An on-line and timely reporting enabled all levels of management for easy analysis and fast response to market trends and customer s needs A range of new products have been introduced and new customer growth rate increased, from 15% to 35%, on a yearly basis A range of new services introduced such as ATM, SMS banking, internet banking, and reporting Customer scoring system interfaced to TrustBank reduced the average time for decision making from 2.5 days to 6 Hours

23 Higher ROI, Lower TCO The bank s IT department head count was reduced by 42% The bank s back office operations department was completely centralized and head count reduced by over 50% The bank s front office personnel was relieved from back office duties and entirely focused on sales and customer services Customer s information gathered, stored and analyzed has increased by over 70% for retail customers and over 50% for corporate ones

24 Roles and Responsibilities Role Steering Committee Program Director Project Managers Responsibilities Approving and changing the scope of the Program according to the master plan and budget. Reviewing the regular Program status reports and proposing solutions regarding tasks implementation required by the Director. Tracking task implementation at the regular Steering Committee meeting where the Director presents the Program progress and the necessary solutions. (incl. proposing solutions) Making final decision regarding the Program Preparing implementation plan (with the Project managers if necessary) Distributing tasks to the responsible persons Tracking task implementation during the meetings of the Program Coordinating different tasks with counterparties, consultants and other external resources Coordinating obligations and responsibilities with Project Managers Preparing the Program regular status reports for Steering Committee Presenting Program status and informing Steering Committee for necessary solutions Collecting budget status report from line management Preparing implementation plan (with Project team if necessary) Distributing tasks to the responsible persons Tracking Project task implementation Presenting Project status report at the regular Program meetings Responsible for the approval of all Project products Presenting all requirements for project changes to the Program Office Reporting all issues which could not be resolved within the Project Informing Program Director about all delays of the initial plan deadlines

25 Roles and Responsibilities Role Responsibilities Project Members Proposing ideas and expert opinions Working on tasks defined by Project Manager Preparing the necessary documents and analysis connected with the Project products Project Management Office Information Center for all questions regarding the Program Archiving and renewing Program master plan Managing processes for task solution, change requests, approval for Project products Archiving and renewing central registers and documentation regarding issues, change requests, approvals of Project products Preparing and renewing Project participation list Reviewing project status reports and preparing Program status report Organizing and taking minutes at Program and Steering Committee meeting Providing on time accurate information for forthcoming changes for all employees of the Bank, organizing meetings and preparing newsletters Investment Control Supporting Program Management with new ideas and proposals for issue solutions and problems Controlling quality and professional preparation of all Program products Reviewing the results and products of the Program and proposing approvals

26 Milestones and Phases Introduction of TrustBank Milestones Deliverable Planning of deliverables connected with introduction of bank- information platform of TBS Chandrapur District Central Co-operative Bank. Developing detail plans of the project plans for tests, migration, training and adoption. (PWT) The bank s team is introduced to the basic functionalities and the architecture of TrustBank Analysis of the existing bank products and defining their place in the functionality of the bankinformation platform (product fitment). Parameterization and Product set-upof TrustBank Preparing data base for System Integration and User Acceptance tests UserAcceptance test - plan, preparation and accomplishment A plan for PWT *** A plan for key users training* A protocol for completion approved by the leader of the team A product catalog of the present products in CDCCB** A product catalog of the future products in TrustBank* A protocol for completed parameterization of the products from the Product catalog A protocol for completed installation of the data base and TrustBank application Making up test scripts*** A protocol for correctness of the test scripts results

27 Milestones and Phases Introduction of TrustBank Milestones Preparing the formats for data migration Data migration from the existing systems in TrustBank. System Integration test plan, preparation and accomplishment Trial conversion and stress testing Train the trainers Go-live Phase wise Deliverable Making uptables for data migration* A protocol for correctness/ faithfulness of the migrated data A plan for System Integration test* A protocol for correctly completed System Integration test A protocol for trial conversion A protocol for completed training the important/key users A protocol for successful putting into operation for every single branch Support and optimization (tuning).

28 Milestones and Phases Development of interfaces to the basic bank system Milestones Analysis of the requirements to the interfaces Design, functional specification of the design and architecture Development and introduction System Integration test plan, preparation and implementation/ fulfillment Documentation Deliverable Interface Requirement Specification Document** Interface Functional Specification Document* A protocol for introducing the interfaces A system integration test plan* A protocol for correctly completed system integration test Technical, System and Architecture interface documentation*

29 Milestones and Phases Exploitation of Centralized report system Milestones Deliverable Analysis of the requirements to the Centralized report system Design, functional specification of the design and architecture Development and introduction System Integration test plan, preparation and fulfillment/ accomplishment Documentation Support and tuning Application Requirement Specification Document** Application Functional Specification Document* A protocol for introducing the application/system/product System integration test plan* A protocol for correctly completed system integration test Technical, System and Architecture interface documentation of the application/system/product*

30 In Summary This was the first project of its kind, considering its scope and functionality covered. The implementation was done by Trust, and successfully completed within 9 months The "extraordinary power" of banking innovation Acknowledged by the CDCC Bank.

31 Any Questions? TO KNOW MORE ABOUT TRUSTBANK CBS CONTACT US Contacts: 11/4 I.T. Park, Gayatri Nagar, Nagpur, INDIA