TrustBank Implementation Case Study Trust Systems Software (I)
Agenda Overview of Bank Reasons Sewa changed their legacy system Problems Sewa 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 Trust Systems Software (I)
Overview of Bank Sewa Bikas Bank is the class B Bank in the famous trading zone of Nepal, It is one of the largest bank in the Region by assets, and by number of locations. It has a large coverage in the region and has attracted some of the largest corporate clients as well as over 150000 retail clients. Size of bank Asset Size over 50 Million Rs. Number of branches 8 branches, 3 upcoming Branches Number of customers 25 000 (of which 5 000 corporate 20 000 retail) Number of accounts 50 000 Trust Systems Software (I)
Overview of Bank Products offered by the bank The full range of products for retail, corporate, treasury, private investors, etc. A set of different channels for offering bank s services products in real time Cards, National Payment, internet banking retail corporate, SMS/e-mail notifications, Mobile phone banking, Scoring, etc. Reasons for the implementation Migration from existing platform due to old legacy system being unable to support the banks rapid expansion (doubled, in asset size, in one year) 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. Historical Note The old bank system was Pumori, local system developed in the old technology by a Nepal s vendor. Sewa Bank was one of the initiator who were in search for the best available option to meet their requirements and give themselves competitive edge in the market. Trust Systems Software (I)
Reasons SEWA 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 Sewa Bank IT policies and Central Bank s guidelines, procedures and requirements Old legacy system, 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 Lack of functionality desired, e.g. automatic provisioning, auto loans liquidation, etc 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) Trust Systems Software (I)
Problems sewa faced Previously 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 Trust Systems Software (I)
Preliminary Business Requirements Sewa bank started in early 2007. Looking for: Easy integration/interfaces Depth and breadth of functionality Quick time to market Internationally recognized vendor/solution with local presence in Nepal Scalable and Capable solution to meet their expansion plan. Trust Systems Software (I)
Scope of Implementation Lines of business Back Office Operations Retail Current Accounts Savings Accounts Term Deposits Retail Loans Structured Deposits Cheques National Payment Network Statutory Compliance reports HR Management Payroll Inventory Management Credit Appraisal Budget SMS Internet Banking Trust Systems Software (I)
Project Details Core Solution Stack implemented Our Role SI involved Backspace Partners involved (from Trust side) Backspace Relationship between, SI, partners and bank back to back or independent contract Tri-Party Agreement between Trust Systems Software, Backsapce and Sewa Bikas (Development) Bank. Roles and Responsibilities of different parties Backspace system integrator and implementer Trust Systems Software Customization, technical support and consultancy Trust Systems Software (I)
Transition Approach Implementation approach Big Bang approach with extensive stress testing and three full mock conversions. The bank was already running on one system 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. Trust Systems Software (I)
Implementation High level time lines for different phases PWT 5 weeks done by Backspace GAP analysis 6 weeks done by Backspace System initial set-up and parameterization 14 weeks done by Backspace HW sizing and procurement (in parallel) 13 weeks done by Backspace and IBM IT infrastructure and comm. lines upgrade and set-up (in parallel) 22 weeks done by Sewa Bank System s parameter and products testing 12 weeks done by Backspace and Sewa bank Additional set-up and parameterization 2 weeks done by Backspace Trust Systems Integration testing (incl. parameters and products) 6 weeks done by Backspace, Trust and Sewa bank Train the trainers (in parallel) 4 weeks done by Backspace Mock migrations and stress testing 6 weeks done by Backspace, Trust and Sewa bank End user training (in parallel) 7 weeks done by Sewa bank Post Go-live support 8 weeks done by Backspace Trust Trust Systems Software (I)
Implementation For each phase Deliverables of the phase Documents and sign offs for each of the above phases Resources (from Trust as well as bank) involved numbers, types (technical, functional, PM, testers, SME etc) Trust technical 10 man months Backspace technical 60 man months Backspace functional 80 man months Backspace PM 12 man months Sewa bank PM 12 man months Sewa bank full time project team 36 man months Sewa 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 Nerpal Rashtra Bank standards and Guidelines Trust Systems Software (I)
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 Trust Backspace, approved by Sewa Development bank Data mapping conducted by Trust Backspace and approved by bank Data uploads to TrustBank conducted by Trust and Backspace, verified and approved by Sewa Development bank Complete data is migrated to TrustBank Challenges faced data enrichment, data cleansing etc Extensive and constant data cleansing, verification and reconciliation conducted together with Backspace and Sewa bank Large proportion of additional client, loan, collateral data was missing in the core system and had to be gathered for upload to TrustBank Trust Systems Software (I)
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 bank- admin 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. Trust Systems Software (I)
Infrastructure Management Low-Mid (Expandable) level production hardware layout Type of machines used IBM X3200 M2 series Windows 2003 Server OS, SQL Server 2005 for database Quad Core CPU for production with 8GB RAM, IBM X3200 M2, Windows Server 2003 OS, TrustBank HOST Quad Core CPU 4GB RAM, Same Configuration for Backup System (for Application Server and Database Server) Location of different machines All HW located in sewa development bank Production data center with extra servers for SMS Banking, Internet Banking and ATM Interface Network details An Optic Fiber Network for all 6 locations and upcoming 3 locations connected to main data center with bandwidth ranging from 256Kbps to 1Mbps depending on number of users in each location Trust Systems Software (I)
Infrastructure Management Responsibilities for infrastructure Hardware Sizing Backspce and IBM Procurement Sewa bank and Stone Computers (an IBM authorized reseller) Setup IBM and Backspace Maintenance - IBM Support IBM and Sewa Bank Third party software is maintained and supported by the respective software vendor in accordance with the Sewa bank internal rules and procedures Trust Systems Software (all in compliance with Sewa bank internal IT policy, rules and procedures) Setup Trust Backspace Maintenance Trust Backspace Support Trust Backspace Trust Systems Software (I)
Post Production Support Type of Support Local Tools used Help desk system is 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 backspace Trust were responsible; with temporary access being granted on a need to have basis Trust Systems Software (I)
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 Trust Systems Software (I)
Banking community Show cases and visits Since Go-live there has been two site visits by Annapurna National Development Bank, from Nepal and Shine Development Bank, Nepal Sewa Development bank and its management are quite happy with hosting such visits Success Story of Sewa Development Bank was published in the leading Banking Magazine and Newspapers. Trust Systems Software (I)
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 Trust Systems Software (I)
Benefits of TrustBank introduction 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 Trust Systems Software (I)
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 Trust Systems Software (I)
Roles and Responsibilities Role Steering Committee 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 Program Director 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 Project Managers 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 Trust Systems Software (I)
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 Trust Systems Software (I)
Milestones and Phases Introduction of TrustBank Milestones Deliverable Start End Planning of deliverables connected with introduction of bank- information platform of TB Sewa Development Bank. Developing detail plans of the project plans for tests, migration, training and adoption. A plan for PWT *** A plan for key users training* 09.10.20 10 10.11.20 10 (PWT) The bank s team is introduced to the basic functionalities and the architecture of TrustBank A protocol for completion approved by the leader of the team 13.11.20 10 12.01.20 10 Analysis of the existing bank products and defining their place in the functionality of the bankinformation platform (product fitment). A product catalog of the present products in Sewa** A product catalog of the future products in TrustBank* Parameterization and Product set-upof TrustBank A protocol for completed parameterization of the products from the Product catalog Preparing data base for System Integration and User Acceptance tests A protocol for completed installation of the data base and TrustBank application UserAcceptance test - plan, preparation and accomplishment Making up test scripts*** A protocol for correctness of the test scripts results Trust Systems Software (I)
Milestones and Phases Introduction of TrustBank Milestones Deliverable Start End 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 big bang 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). Trust Systems Software (I)
Milestones and Phases Development of interfaces to the basic bank system Milestones Deliverable Start End 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 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* Trust Systems Software (I)
Milestones and Phases Exploitation of Centralized report system Milestones Deliverable Start End 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* Trust Systems Software (I)
In Summary This was the first project of its kind, considering its scope and functionality covered. The implementation was done by Trust Backspace (Trust s partner), and successfully completed within four months. Trust Systems Software (I)
Any Questions? TO KNOW MORE ABOUT TRUSTBANK CBS CONTACT US Contacts: Trust Systems Software (I) 11/4 I.T. Park, Gayatri Nagar, Nagpur, INDIA Info@trustbankcbs.com Trust Systems Software (I)