e-banking and Integration in OTP Bank

András Kovács Director of Technology Management and Business Development

IQSYS Rt

04/18/23

2

Agenda

• Business and IT requirements

• Solution

• Experiences, good practices

• Possible future extensions

04/18/23

3

About OTP Bank

• Market leader Universal bank in Hungary– Hungarian marker leader in retail banking (more than 30%)

– Hungarian market leader in municipal banking (more than 60%)

– One of the leader in corporate banking (more than 12%)

• Multi channels – 440 branches, 1100 ATM machines, phone and Internet banking, bank cards

services, mobile services

• Regional presence– In Slovakia and Bulgaria

• Other banking services to retail and corporate clients – Treasury, Factoring, Insurance, International Finance, Estate, Brokering, Funds….

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Initial Situation

• Existing electronic channels– e-banking

– Corporate banking (OTP Client Terminal)

– Mobil (SMS)

– ----------------------------------------

– Call Center (voice based services)

• In-house developed, proprietary communication software– Branch Services and

– Call Center are

a completely separate applications

• Obsolete, not really easy-to-use e-services

• Islands of customer management

• Limited in-house development resources

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Business Requirements

• Scalability and high availability• Unified multi-channel strategy (e-channels first)

– Internet– Different mobile services– Voice (Call Center – TeleBank)– Braches

– SST • Unified, central customer managements (e-channels first)• Agile system

– Fast, low risk, low cost releases of new services• For every electronic channel including voice based services...

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IT Requirements

• Business requirements plus….

• Multi-layered architecture– Core business services

– Business flow (logic)

– Multi channel presentation

• Centralized, business process oriented approach

• Central administrator, operator and log facility

• Faster, more reliable development

• Common environment for integration and new applications

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Business servicesBack-end services

Channel independent

Business flow

Systematic

(3-10 years)

Multi-layered Architecture Supports Multi-channel Business Strategies

Channel adapters

• Branch

• Internet

• Mobil

(WAP, PDA, Java...)

• Call

Center

• Partners

Middleware(ENS)

Middleware (ENS)

• SST (Kiosk)

• Corporate

banking

Multi-devicepersonalizedpresentation

Quasi systematic

(12-36 month)

Opportunistic

(3-24 months)

Hyper

opportunistic

(days-weeks)

B2B

SST= Self service Terminal, ENS=Enterprise Nervous System

• Virtual POS

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Business servicesBack-end services

Channel independent

Business flow

Systematic

(3-10 years)

Enterprise Application Platform Suits Supports Multi-layered Architecture

Channel adapters

• Branch

• Internet

• Mobil

(WAP, PDA, Java...)

• Call

Center

• Partners

Middleware(ENR)

Middleware (ENR)

• SST (Kiosk)

• Corporate

banking

Multi-devicepersonalizedpresentation

Quasi systematic

(12-36 month)

Opportunistic

(3-24 months)

Hyper

opportunistic

(days-weeks)

B2B

JCAAdapter

JCAAdapter

JCAAdapter

JCAAdapter

WebLogic Integration

WebLogic Portal

We

bL

og

ic S

erv

er

Channels Channels Channels

JCAAdapter

Channels Channels Channels

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BEA WebLogic Integration Selected as the Integration Platform

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The Solution

MiddlewareDatabase

WebLogicExpress

JSP

e-banking

Customer management

WebLogic Integration

AccountingAccounting

JCAAdapter

InterestsInterests

JCAAdapter

CardManagement

CardManagement

JCAAdapter

Call Center(TeleBank)

Call Center(TeleBank)

JCAAdapter

EJB WebServices

WAP

SIMToolkit

Corporatebanking

WebLogicExpress

JSP

BranchServer

Client

Client

Client

CreditAccounts

CreditAccounts

JCAAdapter

Virtual POSService

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The Solution (continued)• The current version of the middleware provides unified services for the

channels– e-banking – Mobil (WAP & SMS + SIMToolkit)– Corporate banking (Client Terminal)– Call Center (partly)– Branches (partly)

• Partly unified customer management– For the middleware based channels

• Business process oriented integration• WebLogic Express provides the web based GUI for

– e-banking– Customer management

• Branch, mobil and corporate banking services access the business flows via Web Services

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Scalable, High-available Architecture

Sun clusterOracle RAC

DMZ

DMZ

WebLogiccluster

WebLogicExpress

WebLogicExpress

WebLogicServer

WebLogicIntegration

WebLogicServer

WebLogicIntegration

Http serverIntranet Portal

WLplugin

firewall

firewall

Billing InterestsCard

systemCall Center

Middlewaredatabase

Intranetusers

Customers(Internet users)

Middlewaredatabase

WebLogicAdmin

Http serverInternet Portal

WLplugin

Http serverInternet Portal

WLplugin

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Solution Methodology• The integration tool defines a basic methodology

– WLS 6.1, WLI 2.1– Business process based integration– Component based implementation

• BPM processes, EJB, Java classes• Reuse

– Access to back-end systems via JCA adapters.• The integration tool contains development tools

– Adapter Development Kit– Graphical Process Editor and Monitor– Transformation Editor (Binary<>XML, XML<>XML)

• De-facto standard AD methodologies can be used– RUP (Rational Unified Process) and Rational lifecycle support tools are

used• Iterative development (This is a must req. from OTP) • Requirements analysis for the whole system and its the modules.• Design, implementation and testing for the modules• Integration test for the complete releases

– Iterative development for the moment too

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Solution, Good Practices

• Adapter Development– Using WebLogic Integration ADK (Adapter Developer Kit)

• Structure by J2EE JCA standard.• The general parts are generated.

– Iterative implementation • Identification of the environment and interfaces are long processes • The lack of the detailed documentation• The weak functionality of the integrated systems should be hidden.

• Implemented JCA adapters:– Terminal emulator adapter– Database adapters (Oracle, MS SQLServer) – Unique TCP protocol (BIC) based adapter

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Solution, Good Practices (continued)

• Business Processes– Modeling in UML (Rational Rose)

• Customer can verify and approve the processes in the early phases

– Implementation: WebLogic Studio• Graphical editing.

• Processes can access standard J2EE elements (class, EJB, JCA, JMS)– Repeating part of the business logic can be implemented as component.

– Services provided by the adapters can be easily built into processes

– Testing• Test design by the approved models

• In house developed test tool for the business processes

• Implemented processes– ~220 processes (business and utilityprocesses)

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Solution, Good Practices (continued)

• User Interface– e-banking– Back office (Customer Management for middleware based electronic

channels) • Inner administration and maintenance

– MVC architecture with JSP pages• Business Logic implemented in the middleware

– Homogenous architecture– Admin operations can be used on different user interfaces (in different applications)– The system can be easily reorganized (e.g.: in case of CRM introduction)

• Role based security– The functionality of the operations depend on the role of the caller– Rules of the authentication can be changed without the modification of the user

interface

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Experiences, recommendations• Central management and support of the project at the customer side

is a vital issue.– Clear communication of the business values to the business departments.

• Quality of the services • Unified multi-channel product/service management .• Unified customer management• Faster, lower risk implementation of new services• Scalability, high availability

• Elaboration between an overall concept and long term strategy is necessary– The long term scope of the integration (e.g. B2B, Portal...)– Good implementation strategy

• Practical order of the development steps• Unambiguous specification of the scope of the development steps.

• Integration tool is strategic issue, we should live with it for a long period.– Future proof, standard base, main stream tool is required

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Benefits• Standard J2EE/XML based • The market leading application server provides the solid

backgrounds– Scalability– Performance– High availability, load balancing (cluster technology)– Multiple platform support– Central, homogenous, extensible administration

• For WLS, WLI• Applications (JMX Beans)

• After establishing the backgrounds (main adapters and processes) the system can be extended/modified fastly

• Common environment for– Integration– Composit applications– New applications

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Possible Future Extensions

WAP

SIMToolkit

Corporatebanking

BillingBilling InterestsInterests CardMangement

CardMangement

WebLogic Integration

JCAAdapter

JCAAdapter

JCAAdapter

Call Center(TeleBank)

Call Center(TeleBank)

JCAAdapter

MiddlewareDatabase

OtherApps

OtherApps

JCAAdapter

...

...

...

WebLogic Portal

Channels Channels ChannelsWebServices

Client

Client

Client

Virtual POSService

BranchServer

04/18/23

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Possible Future Extensions (continued)• Integration of new systems

• New electronic channels– Java middlet based mobile services

– PDA based mobile services

– Self service terminal

– Extending services • Call center (TeleBank)

• Branches

• Unified channel managements– Electronic channels

– Voice based services

– Branches

• Unified user interface (portal)

Thank you for your attention

kovacs.andras@iqsys.hu