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A Smart Integration Approach with Account Location Service and Core Banking Container

A Smart Integration Approach with Account Location Service and Core Banking Container

Abstract
Many of our clients are implementing or planning to implement middleoffice processing hubs such as payments or loans platforms. A complex element is the integration of these middle-tiers with the backends which are holding the accounts. Very often this integration is done using a point-to-point integration approach, resulting in complex and inflexible solutions. The same problem occurs when banks are doing a core banking replacement program and have to integrate the new back-end with existing processing channels. It is surprising to see how this integration is handled in a tactical way and consequently important opportunities to offer a better service are missed. 

In this article we will describe an alternative approach which we call the Smart Integration Approach (SIA).  SIA has two key ingredients which are the Account Location Service (ALS) and Core Banking Container (CBC).  Nevertheless these components are not magic solutions and only make sense in a unified approach based on a Service Oriented Architecture. Another observation is that integration requires a toolkit. We are not advocating any specific tools such as TibCo or Websphere as differences between the vendors are marginal. What we are proposing is a mature and smart integration approach, which can be obtained with whatever tool, including CISCO AON.

Excerpts from the Paper
The primary function of the Account Location Service is to identify the Product System that hosts a specified account. A hosting system can be a Core Banking Platform and any Account Holding Platform such as a Credit Card Platform or Insurance System. The Account Location Service can be used for all incoming and outgoing transactions and the transaction processor (e.g. Payment Engine) will make a request to the Account Location Service to retrieve the back-end system of the given Account Number/Sort & Bank Code. This service will enable the financial institution to build e.g. a Unified Payments Capability while migrating accounts from existing legacy core systems to a new core system such as SAP.

For each inbound or outbound payment, the ALS will determine the account holding platform and route the posting to the corresponding interface for the given product system. The Account Location Service can receive real-time and near real-time data feeds from the Product Systems on changes to the account information. For those systems which do not provide real-time information, a file upload can be used. 

 

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