Title of Presentation

Ramadas MV, Managing Partner

Enterprise Banking Architects(EBA)
 Payment Reference Architecture :Agenda

o Payment Outline Architecture

o Payment Reference Architecture Framework
o Payment Architecture Building Blocks
o Payment architecture Reference blocks
o Building block definitions
o Enterprise Payment Transaction hub
o Payment Operation
o Regulatory & Global Compliance hub
o Payment Transaction Data Warehouse
o Business Activity Monitoring
o Reconciliation
o Back Office Accounting services
o Payment Architecture Mapping
o Payment Framework Components
o Payment Capability Reference model

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 Outline Reference :Payment Architecture
Interaction layer Process layer
User Interfaces & Alliance Business Rules/Process Models/Process Manager

Enterprise Payment service Bus

Payment Application services

AML And OFAC Service

Performance and availability services

Business Activity Monitoring
Rules engine , bulking/de-bulking

Repository and Registry services

Transformation , account look-up/validation

Payment gateways
Ledger posting and booking
Accounting system
Liquidity System
Information Logging
Validation
layer Auditing
Data warehouse Calendar scheduler
Data models Persistence service
Events Orchestration
Reporting Enrichment
Fee Calculation

Authentication Audit Security & Risk services Access Control

Development Delivery Implementation 3

Delivery & Implementation layer
Payment Reference Architecture Framework
Retail Online Wholesale Online Host to host ATM Treasury POS IVR Back Office Call Center
Interaction layer

Interaction Process and Automation

User Interface | Collaborations |Rules Engine | data Models| Data Transformation

Communication
Security Services
Access Security| Authentications | Authorizations | Audit | Fraud management
Enterprise Payment services Bus

Message Bulking/
Routing Transformation

External gateway services

Interactions Validation debulking

State Scheme
Enrichment Repair AML service
machine Limits
Fund Rules Payment
Control Store Store
Deposits Policy Business Process Management

management
Product Management

Loans Procurement & Administration Business Alerts and Monitoring

System
Core Services
Treasury Finance
External Data
Trade Finance IT Budgeting & Forecasting

Almanac
Mortgages Finance Risk Management Customer

Payment Applications Human Resource Marketing

Storage Windows Linux Warehouse Mainframe Cloud 4

 Payment Architecture building blocks

Retail Online Wholesale Online Host to host ATM Treasury POS IVR Back Office Call Center Interaction
Channels layer
Interaction Process and Automation
User Interface | Collaborations |Rules Engine | data Models| Data Transformation

Communication
Security Services
Security
Access Security| Authentications | Authorizations | Audit | Fraud management

Gateway
Enterprise Payment services Bus

ESB
Message Bulking/
Routing Transformation

External gateway services

Validation debulkin
Interactions g
State Scheme
Enrichment Repair AML service
machine Limits
Fund Rules Payment
Control Store Store
BPM
Deposits Policy Business Process Management

management
Product Management

Risk & Compliance

Loans Procurement & Administration Business Alerts and Monitoring

System
Core Services BAM
Finance
Products

Treasury
External Data
Payment Engine

Trade Finance IT Budgeting & Forecasting

Almanac
Mortgages Finance Risk Management Customer

Payment Applications Human Resource Marketing

D/W
5 Infrastructure
Storage Windows Linux Warehouse Mainframe Cloud
 Payment Architecture Reference
Blocks (PAB) Enterprise
Payment Bus

PAB1- PAB2- PAB3- PAB4- PAB5- PAB6- PAB7-

Enterprise Payment Regulatory & Payment Business Reconciliation Backoffice
Payment Operations Compliance Transaction Activity Accounting
transaction hub Data Monitoring ( Services
Hub warehouse BAM)

Alerts AML Reference data Matching accounts Posting

Validation Dashboar d

Enquiries & OFAC Archive Reporting Reversal Redirection

Transformation
Investigation

Bulking & De
Bulking

Enrichment

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 Payment Architecture Block
Enterprise
Definitions
Enterprise Payment Bus is a strategic architecture reference block that provides collection of business and IT capabilities for
end to end Payments life cycle management, where payment refers to all types of transactions through all the channels and
Payment Bus gateways for all the LoBs of the bank. It will deliver standardization, reliability, performance, throughput, reduced cost per
transaction, and flexibility.
Enterprise Enterprise payment transaction hub provides the backbone to loosely coupled payment transaction processing systems
Payment enabling agile business change in response to regulations and operating models. It provides capabilities such as transaction
Transaction hub validation and message transformation, enrichment of transaction content for processing, identifying duplicate transactions,
PAB1 and complex events management to handle transactions.
Payment Payment Operations enables early detection of exceptions and resolution through case management. It allows investigation in
Operations to enquiries, and exceptions. The case management capability provides the processes to manage exceptions and prevent
PAB2 propagation to downstream systems leading to higher operational efficiency.
Regulatory and compliance hub ensures that business policies (e.g., regulatory check) related to different transaction types are
Regulatory & run before the execution of the transactions in addition to managing business rules for sequencing. It reduces a lot of hard
compliance Hub coding and improves configurability by running as a service off the bus. It will extends existing components to provide a service
PAB3 that will run off the bus to perform financial crime checks.

Payment Payment Transaction Data Services acts as a single source of truth for all transactions processed through Payment Bus enabling
Transaction Data business to query and generate reports by aggregating transaction data. It provides storage and retrieval of transactions,
warehouse transaction reference data , operational reporting and archival capabilities.
PAB4

Business Activity BAM tracks the transactions as they flow through the Payment bus and processing systems such as engines. It provides the
Monitoring ability to track the transactions and also create dashboard view for business on each of the transactions.
PAB5

Reconciliation Reconciliation utility reuses and extends existing components to provide a centralised reconciliation solution across the
PAB6 transaction processing for all the business units.
Backoffice Accounting services is the single entry point to accounting systems through Payment Bus. It provides capabilities such as
Accounting account look up, redirection and posting
Service
PAB7

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 Enterprise Payment Bus
PAB1- Enterprise Payment Transaction Hub
Capability
Provides the infrastructure for end to end management of transaction life cycle leading to reduction in cost of transaction and
improvement in reliability.
Provides central infrastructure to deliver major regulatory projects.
Enables business activity monitoring by creating a central hub through which transactions flow.
Design Characteristics
Provides the backbone for payments processing by enabling inter-connectedness of systems without tight coupling.
Will receive data events from multiple systems through real time, near real time and Batch interfaces.
It facilitates invocation of both internal and external services to process the transactions
It will provide platinum availability and high performance characteristics to ensure scalability of payments transactional services
solution
It de-risks implementation and any changes to its interfacing systems including Engines.
Interfaces
It will provide interfaces for publishing and subscribing events and messages in addition to fine grained services pre-processing
It will provide interfaces for upstream and downstream systems participating in a payment transaction lifecycle to communicate with
each other in a transparent manner.
It provides interface to monitoring solutions for business and technical activity across the payment transaction lifecycle.
It will interface with Payment Transaction Data Warehouse
Solutions :
Fundtech- Global Payplus-Service platform(GPP) Logica - Logica All Payment solutions(LAPS)
IBM - Financial Transaction Manager (FTM) Polaris- Intellect Payment Services Hub
Mysis - Misys Payment Manager Clear2Pay- Open Payment Framework (OPF)
Oracle - Enterprise Payment Services(Flexcube)

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 Enterprise Payment Bus
PAB2-Payment Operations
Capability
Payment operations provide end to end work flow management of cases related to the investigations triggered from
exceptions (from transaction processing, fraud check, etc) and enquiries , including enquiries on status of the
transactions
It can be used to centralize the investigation and posting of unapplied payment transactions across payment types
upon identification from an accounting services.
The solution will facilitate customer enquiries and investigations, with auto-case creation, queuing, allocation, update
and role-based access to operations and customer facing teams.
It will provide reports on typical exceptions causing investigations feeding to improve STP capabilities; types of
customer enquiries, etc

Design Characteristics
This will be a centralized solution for payment transaction processing and financial crime investigations
This service will not be used in the applications where work flow management functions are readily available for
transaction processing (e.g. GPP).
It will actively use payment transactions Data Services for data validation and investigation.

Interfaces
Accesses transaction data from Transaction Data services, and customer data from reference data service (SCV). It
will access data through Payment Bus.
Will be integrated to CRM systems to accept the enquiries, requests, etc

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 Enterprise Payment Bus
PAB 3- Regulatory & Global Compliance Hub
Capability
The compliance hub ensures that events happen in a prescribed sequence. This will include validating sequences of events and
determining follow on services.
Invalid data, deviation from required patterns of message exchanges and SLA breaches will all be reported.
It provides an enterprise suit of tools and capabilities to prevent, detect and remediate fraud and financial crime.
It would include Sanctions, AML, and any other fraud list.
The Compliance hub will provide centralised enforcement of compliance policies.
Design Characteristics
A highly available component with multiple instantiations for reasons of scalability, performance , geography and financial & legal
jurisdiction.
It will be underpinned by a SOA architecture to avoid tight coupling Fraud capabilities with either the Source Systems or the Payments
Architecture.
Will use publisher/subscriber service offered by Payment Bus to accept and push the transactions flowing through it.
Provides guaranteed SLA for transaction life cycle through a managed services approach.
Will receive data from multiple systems through real time, near real time and Batch interfaces.
Will provide high availability and extreme performance characteristics to ensure scalability of transactional services solution.
Interfaces
The Enforcement Engine will be attached the Payment Bus. It will receive input via subscriptions and invoke other services via
publishing.
It will use standard connectivity methods that will cater for :Publish / Subscribe ,Synchronous ,Asynchronous
It will provide interface to Payment Bus to support all the payment transactions processing through the Bus.
It provides interface to monitoring solutions for deep technical system activity and business activity monitoring across the transaction
lifecycle.

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 Enterprise Payment Bus
PAB4-Payment Transaction Data Warehouse
Capability
PTDW creates a centralised repository for all transactions. This allows business to create customer outputs by pulling
together transaction and customer data.
PTDW enables audit capability for all transaction data
PTDW improves transaction reliability by enabling de-duplication

Design Characteristics
PTDW provides a single view of Payment transactional data flowing through the Payment bus.
PTDW provides a set of services for consumption by consumers through the payment bus or directly for creation,
update, searching, querying but not for deletion of transaction data.
PTDW will provide high availability and performance characteristics to ensure scalability of transactional services
solution.
This is not a reporting solution but will provide querying capabilities and allows for reporting using other tools.

Interfaces
It interfaces with Payment Bus for the purpose of exchanging transaction
It facilitates data to reporting engine.
It moves data to data archive

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 Enterprise Payment Bus
PAB5-Business Activity Monitoring
Capability:
Provides central location for monitoring and predictive analysis of business processes
Includes dashboards for monitoring and MI as well alerts for key business events, for use by business users
BAM will interact with Transaction Bus for monitoring all the transactions in the transaction processing landscape.

Design Characteristics
BAM needs to monitor Transaction Bus alone as all the systems in the transaction processing estate push data to
monitor to transaction bus
Will be organised into three service levels to reflect the criticality of the transactions being monitored so that Gold
services are given a higher priority than silver ones when they are sent to BAM

Key Interfaces:
A single type of interface from Payment Bus to BAM will be used to communicate events in a common format

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 Enterprise Payment Bus
PAB6-Reconciliation
Capability
The Reconciliation provides better visibility and financial control over the bank globally.
It will helps to reconcile all the payment transaction data through one central reliable tool
It will enable the Cash, Bank and General Ledger balances are stored, and provides global
treasury position on corporate cash.
The automated processing of data reduces manual entry and consequently reduces the
possibility of fraud and increases financial control

Design Characteristics
The reconciliation need to monitor all the local and international payment transaction from the Payment Bus.
The Reconciliation service will do the matching and reversal process along with the accounting services.
A highly available component with multiple instantiations for reasons of scalability, performance , geography and
financial & legal jurisdiction.

Interfaces
The Reconciliation service sits between the Payment Bus and the Accounting systems. The connectivity will be
through the Payment Bus using a publish and subscribe mode

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 Enterprise Payment Bus
PAB7- Back office Accounting Services
Capability
The Accounting service provides isolation from Payment engines and back end Accounting Systems.
Facilitates efficient routing of on-us transactions and internal-switching
Delivers a common set of routing rules and practices in one place , thus removing duplicate logic , often at variance,
from payment engines.
Simplifies switching and redirection between accounting systems at account level or group level (e.g. wholesale
loans migrations)
Supported by tools allowing business to interrogate routing rules (e.g. how to answer the question – “Which
accounting system was my payment routed to?”)
Flexibility to add new channels, engines, and product systems with minimal impact to existing processes
Design Characteristics
Service for Accounting Services will be published or subscribed by Payment Bus.
A highly available component with multiple instantiations for reasons of scalability, performance , geography and
financial & legal jurisdiction.
The Accounting Services will be table driven enabling changes to be made without coding effort. Changes will be
audited and secured through a multi-level authorisation process
Interfaces
The Accounting services sits logically between Payment Engines and Accounting Systems. Connectivity will be via
the Payment Bus using a publish and subscribe mod

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 Payment Architecture Mapping
Payment Engine Middleware Framework

Features Pre-built scheme level Pure middleware product Pre-build sub-flows,

processing, supporting messaging/ Stateless/full
Black box component Payments Repository, Grey box component
Stateless/full processing

Advantages Low implementation cost if Low technology cost Standards based

implementation Relative low cost Modular
‘out of the box’

Disadvantages Customisation cycle slow Building enhanced function is Customisation can still be
Black box component costly expensive
High product cost

Examples Fundtech GPP IBM MQ/Message Broker, IBM Enterprise Payments

Oracle (BEA Weblogic) platform, Clear2pay, Polaris
Soft. Lab

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 Payment Frame work Components
Framework Components Tool

Interaction Webshpere portal and Lotus Forms

Process IBM IFW, BPM tool, Oracle Business Process Suite, WODM
Business Rules Management
Information Cognos, Pure XML, Rational Data Architect, Webshpere
Transformation Extender, IBM Banking Data Warehouse
Models

Service Management Tivoli Composite Application Manager for SOA, Rational

Asset Manager

Access Webshpere Business Integrator, Webshpere Partner

Gateways

Authentication Tivoli Identity Manager

Delivery & Implementation Rational Software Architect with IFW*

Rational Jazz
WebSphere Banking Content Pack*
Rational Requisite Pro
WebSphere Modeler with IFW*

Security Services Rational AppScan (PCI DSS) and Policy Tester

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Payment Capability Reference model

Payments

Payment
Initiation
Customer Payments
Master Date
Customer Bank’s Initiated by
Internet In-bound from
ERP MA CUG Customer Other txns
Banking Payments Whitelabel
System Service (like FX,
Business
Customer Trade etc.)
balances

INBOUND PAYMENTS (Interface Layer)

Customer
Facilities
Validate Payment (Validate Source, duplicate
Interface to rest of banks systems

Inbound Q
Payment Workflow

check, Business validation)

Repair Q Payment Archival

Processing
Treasury

Payment
Reports
Alerts
Referral Q Rules Checking (Limits, Balance, SDN, etc)
AML &
SDN/OFAC
Checks Auth Q Payment Batching

Outbound Q Determine Routing (where to send payments)

Banks GL
OUTBOUND PAYMENTS (Interface Layer)
t Based
Instrumen

Domestic

Intern’nal

Account
Inter-
MIS &
Datawarehouse

Transmission
Payment
Billing System

Local
Check BOOK
Reporting System Clearing/ SWIFT
Printing TRANSFER
RTGS
 Thank you

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Enterprise Banking Architects(EBA)

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