This whitepaper covers an effective way for retail banks to design and redesign business processes using SaaS & SOA in a relatively short time.
The solution described above covers the following aspects: faster deployment time and reduced time-to-market, reduced IT acquisition and maintenance costs, ease of use and implementation, reliability and scalability.
SaaS & SOA in Retail Banking
Combination for Success
Table of Contents:
1 Introduction 1
2 A Global Delivery Challenge 2
3 Standards for E?ciency 3
4 Solution Showcase | Building the ecosystem 5
5 Summary 61 Introduction
Global challenges force ÷nancial organizations to seek a new technology foundation for business. The
combination of Service-Oriented Architecture (SOA) and Software-as-a-Service (SaaS) provides
ultimate expandability cost e?ectively and unlimbers organizations for SaaS rapid change. SaaS is
a delivery model that unloads software over the internet in a one-to-many model which is combined
with a repository of SOA components provides the ability to align technology with business.
Monolithic on-premise applications are no longer viable for delivering products or services in a highly
SSaaS & SOA enable retail banks to design and redesign business processes as quickly as possible.
Now they can focus on business needs instead of squandering time on technology limitations.
SaaS based on solid SOA framework will play a major role in the transformation of ÷nancial
organizations' operating models toward backo?ce cross-country consolidation, global knowledge
sharing and global marketing practices.
WhitepaperSaaS & SOA in Retail Banking 12 A Global Delivery Challenge
The banking industry is at the peak of transformation. Globalization provides access to large
populations in Third World countries, such as India and China. Additionally, high merger and
acquisition activity force ÷nancial organizations to consolidate their marketing, client management,
and support functions on a national and cross-border level.
It is necessary that customer banks be °exible enough to compete successfully in the development of
new products and services and replacement of existing ones in accordance with market needs.
TTo keep up the pace of development, organizations need to transform their operating model and
achieve IT agility in the following areas:
In order to deliver new products and services rapidly, it is essential to improve the open-÷nance
distribution model (products produced by other ÷nancial institutions that are distributed through the
bank network), backo?ce outsourcing, IT and support functions.
Global strategic marketing implementation, common data structure, analytics, pro÷ling and client
segmentation models are possible to implement in each country. It is crucial that the marketing
approach of a bank be adaptable so that local branches are able to customize products according
to local needs.
2.3 IT Infrastructure
Common IT architecture and a modular application suite will give ÷nancial organizations the
capability to address global challenges as well as react on changes in local markets quickly.
WhitepaperSaaS & SOA in Retail Banking 23 Standards for E?ciency
The combination of SaaS and SOA allows ÷nancial organizations to design global business processes
by means of loosely-coupled services. It also makes it possible to utilize the vast resources of legacy
assets through the method of Web Services layer use and to buy services and processes from third
parties, such as Sales Force. As a result, bank IT systems become more responsive to the global
3.1 Smarter Outsourcing
Back in the days when SaaS providers were known as ASP's, they o?ered conventional software on
demand in a single-tenant environment. Due to the fact that applications were not net-native, their
performance was poor and application updates were of the same quality as self-managed
IIn contrast, SOA-enabled SaaS providers to deliver applications in a one-to-many model (single
instance, multi-tenant architecture) and can scale, °exibly change, and reconstruct software in a very
e?cient way. New technology a?ords the ability to mix and match outsourced business processes
with on-premise assets and services.
3.2 Instant Legacy Renovation
Ironically, retail banks (which are considered to be the most dynamic of ÷nancial institutions)
constitu... [download for more]