Scotiabank supports growth with integrated payments services
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
IBM Software Case Study
Scotiabank supports
growth with integrated
payments services
IBM Industry Solutions help create innovative
commercial payment center
A top multinational financial services provider and Canada’s most
Overview international bank, Scotiabank serves some 21 million customers in
more than 55 countries worldwide. Through its global team of approxi-
The need mately 83,000 employees, Scotiabank offers a broad range of personal,
Scotiabank sought to help its corporate
commercial, corporate and investment banking products and services.
customers manage the complexity of
their payment processes. In December 2012, The Banker magazine, a Financial Times publication,
named the bank Global Bank of the Year and Bank of the Year in the
The solution
Americas. Scotiabank was the first Canadian bank to receive these
To enhance its business banking
solutions, Scotiabank implemented designations.
an integrated payments service
using the IBM Financial Transaction
Manager platform as the foundation.
Supporting profitable growth of payment
services
The benefit As businesses grow and cross borders, they have more types of payments
Scotiabank has expedited the delivery
to process and look to their financial institutions for help with handling
of products and services, scaling opera-
tions to meet transaction volume growth the complexities in day-to-day treasury management. It is difficult for
while also reducing IT infrastructure many large corporations to respond quickly to marketplace threats due to
administration and maintenance costs.
payment system silos. There is also ongoing pressure from government
regulators to cap payment fees while increasing oversight at the customer
and payment-transaction levels.
In response to such challenges, Scotiabank embarked on a multiphase
technology reengineering program to reduce the time and cost of
providing enhanced payment services. The bank had two strategicIBM Software Case Study
objectives. The first objective was to provide a robust and competitive
integrated payments service offering to business customers, allowing cli-
“In order to continue ents to send multiple payment types to the bank in a single transmission.
meeting client The second objective was to increase the overall speed to market for
setting up new customers and for delivering additional payment services
expectations, we needed to existing customers. Underlying this latter objective was the need to
an enhanced, integrated reduce the total cost of ownership (TCO) of Scotiabank’s existing midtier
payment system based payment-processing systems.
upon industry standards. Assessing the scope of the systems involved in the reengineering
The mission statement initiative, the program team made four key technology decisions:
for the new payment
Deploy a centralized payment center by adding an enterprise
center was to address
●●
midtier payment-processing integration layer between back-end
this key business driver.” and customer-facing systems
●●
Create a payment file specification library in order to normalize
—Camilla Mackenzie, Senior Vice President, and standardize the incoming payment information
Cash Management & Payment Services, ●●
Enable business staff to onboard payment clients more quickly by
Scotiabank using a self-service administrative interface
●●
Separate report creation from transaction processing to facilitate
customers’ self-service payment status tracking and customized
rich-media reporting
“We started the reengineering effort at the foundation of the system,
literally refactoring the data layer and then working our way up through
the technology stack,” says Robert Matys, Director of the Global
Transaction Banking Technology Solutions division at Scotiabank.
The new payment center architecture was based on the McKinsey
Consolidated Payment Transaction Processing model, which is
considered to be the most ambitious and effective transformation
model for enhancing both operational efficiency and customer service.
2IBM Software Case Study
Allowing multiple payment types in one
Solution components transmission
Scotiabank recognized that it had an opportunity to support its payment
Software
●●
IBM® DB2® for Linux, UNIX and
facilitation role by providing an integrated payments service, allowing
Windows commercial clients to send all payment types in a single transmission.
●●
IBM Financial Transaction Manager For example, a large corporate customer could have up to 10 types of
IBM InfoSphere® Change Data
payments. “We are managing all the payment types under a modern,
●●
Capture
●●
IBM InfoSphere Master Data centralized enterprise payment processing hub,” says Matys.
Management Server
●●
IBM WebSphere® Transformation To provide the service, Scotiabank engaged IBM and formed a project
Extender
team that designed and deployed the Integrated Payment Center,
Services which functions as an integration layer between the bank’s back-end and
IBM Professional Services
customer-facing midtier payment solutions. Using IBM® WebSphere®
●●
Transformation Extender software, the team then established a library
of 38 standardized payment file specification formats and created pro-
cesses on the IBM Financial Transaction Manager platform to aggregate
transaction information into payment types and route payments directly.
The Integrated Payment Center integrates and tracks transactions and
normalizes each payment into a common representation of the data,
automatically transforming payment messages into a standard format
based on the ISO 20022 specification. This internal canonical payment
structure achieves a standard view of every payment processed, which
dramatically reduces the complexities that were inherent in Scotiabank’s
legacy siloed system approach.
The robust Integrated Payment Center system can complete transforma-
tion and processing in minutes, even when large business customers send
in files with tens of thousands of payments per transmission. The system
also supports Scotiabank’s customer-facing self-service payment tracking
offering at the individual payment level.
3IBM Software Case Study
Supporting customers’ time to market
As part of the Integrated Payment Center deployment, the project team
“We are able to onboard converted Scotiabank’s enterprise customer data into reusable information
clients within days using IBM InfoSphere® Master Data Management Server software. This
because our business unit conversion helps accelerate the process of onboarding new customers.
employees are serving Today, Scotiabank centralizes customer information in a database to
our customers directly.” support the publishing and reuse of customer metadata in payment-
processing applications. For example, the customer account setup data
—Kelly Scott, Vice President, Global Business fields are reused in an internal administrative system, and the publishing
Services, Scotiabank of payment customer setups is integrated into the production Payment
Center platform through an enterprise service-oriented architecture
(SOA) pattern.
With this publishing interface, Scotiabank established a robust, standard-
ized setup service. Staff members in the business units add customers
and payment services “on demand” in self-serve mode. Onboarding wait
times are down by 72 percent. Customers can begin accessing Scotiabank
services within days and the bank also realizes revenue more quickly.
In August 2013, for example, the bank onboarded 112 net new clients
for payment services, which translates to more than 5 clients per day
on average.
Providing transparency of payment status
Because the Scotiabank Integrated Payment Center platform is linked to
the Scotiabank’s electronic banking platform, ScotiaConnect, the bank’s
business customers and internal customer service administrators can
proactively manage payment flows and cash-management operations
with responsiveness and control. The InfoSphere Change Data Capture
software captures payment, balance and transaction data as it is processed
from multiple lines of business. This information is stored in the
customer-facing online analytical processing (OLAP) database that
supports the online reporting service.
4IBM Software Case Study
Scotiabank team members have insight into payments from initiation of a
payment file transfer to process completion and reporting. Commercial
“The bank is managing customers have a clear view of their accounts and near-real-time online
operational risk with access to the status and details of payment transactions at every stage of
processing.
increased transparency
and visibility throughout This extensible reporting data model contributes to a foundation for
the payment processing Scotiabank to accelerate delivery of new services. The bank can reuse all
reporting services because the service tier design is not tightly coupled
lifecycle.” with a specific delivery channel. For example, with the InfoSphere
Change Data Capture software, the bank can integrate data almost
—Gene Kosmyna, Vice President, Online
instantaneously from any of its regional back-end systems. This reporting
Banking Technologies, Scotiabank
repository can also feed internal operational dashboards, helping the
bank segment and rank its existing and prospective customers for
more targeted product development, marketing and sales.
Enhancing the customer’s online experience
Before deploying the new online self-service capabilities, Scotiabank
addressed its ScotiaConnect electronic banking online channel. “At
month’s end, we had a maximum number of clients logging in and
running their most complex reports,” says Matys. “The ScotiaConnect
platform was taxed during peak volume periods.”
The solution was to separate report-creation and transaction-processing
functions in the ScotiaConnect system. The project team created a
dedicated payment-reporting data warehouse to integrate data from
all major Scotiabank technology platforms and databases. Designed
for high performance and read-only access, the OLAP database runs
on IBM DB2® for Linux, UNIX and Windows software.
5IBM Software Case Study
The bank uses IBM InfoSphere Change Data Capture software to
synchronize its online transaction processing (OLTP) and core banking
“The ScotiaConnect home databases with the new data warehouse in near-real time. The software
page for our clients performs data transformation as well as data replication. It detects
changes in the source system, filters and transforms the data according
is now essentially a to business rules, and then updates the reporting database with the new
dashboard. For zero information.
negative client impact
The system supports data extraction in as many as 150 formats. Reports
in terms of wait time, are generated in less than eight seconds, and users can retrieve them in
we can deliver an any supported language and currency with no performance lag, which
exponentially richer represents 100 percent to 200 percent faster access across all report
formats.
experience.”
The improved performance has increased online report volumes
—Rob Matys, Director, Global Transaction by as much as 300 percent. Today, the solution delivers more than
Banking Technology Solutions, Scotiabank
400,000 monthly business banking account statements online, helping
to both reduce printing costs and support the bank’s green objectives.
Supporting a potential tenfold increase
in growth of the customer base
As designed, Scotiabank’s Integrated Payment Center can handle virtually
unlimited numbers of transactions, supporting a tenfold increase in
customers served. “The solution has resolved virtually all performance
and scalability limitations while easing sensitive regulatory reporting and
compliance requirements, specifically in the areas of cash and treasury
management,” says Gene Kosmyna, Vice President of Online Banking
Technologies at Scotiabank. Overall, the cost of payment operations
has fallen by 30 percent and IT-related development costs to complete
manual setups are down by 66 percent.
6IBM Software Case Study
For more information
To learn more about IBM information integration solutions,
please contact your IBM sales representative or IBM Business Partner,
or visit the following website:
ibm.com/software/industry/financial-transaction-manager
To increase the business value of your IBM banking solution and learn
about opportunities, visit: ibm.com/industries/banking
For more information about Scotiabank, visit: www.scotiabank.com
Additionally, IBM Global Financing can help you acquire the software
capabilities that your business needs in the most cost-effective and strate-
gic way possible. We’ll partner with credit-qualified clients to customize
a financing solution to suit your business and development goals, enable
effective cash management, and improve your total cost of ownership.
Fund your critical IT investment and propel your business forward with
IBM Global Financing. For more information, visit: ibm.com/financing
7© Copyright IBM Corporation 2013
IBM Corporation
Software Group
Route 100
Somers, NY 10589
Produced in the United States of America
October, 2013
IBM, the IBM logo, ibm.com, DB2, InfoSphere, and WebSphere are trademarks of
International Business Machines Corp., registered in many jurisdictions worldwide.
Other product and service names might be trademarks of IBM or other companies.
A current list of IBM trademarks is available on the web at “Copyright and trademark
information” at ibm.com/legal/copytrade.shtml
Linux is a registered trademark of Linus Torvalds in the United States, other countries,
or both.
Windows is a trademark of Microsoft Corporation in the United States, other countries,
or both.
UNIX is a registered trademark of The Open Group in the United States and other
countries.
This document is current as of the initial date of publication and may be changed by
IBM at any time. Not all offerings are available in every country in which IBM operates.
The performance data and client examples cited are presented for illustrative purposes
only. Actual performance results may vary depending on specific configurations and
operating conditions. It is the user’s responsibility to evaluate and verify the operation
of any other products or programs with IBM products and programs.
THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS”
WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING
WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF
NON-INFRINGEMENT. IBM products are warranted according to the terms and
conditions of the agreements under which they are provided.
The client is responsible for ensuring compliance with laws and regulations applicable
to it. IBM does not provide legal advice or represent or warrant that its services or
products will ensure that the client is in compliance with any law or regulation.
Please Recycle
ZZC03266-USEN-00You can also read
