Building SOA-Landscape in Sberbank of Russia for Credit Factory Project

Sberbank of Russia is the largest bank in the Russian Federation and CIS. Its assets amount to more than a quarter of the country’s banking system (27%), while its share of the bank capital is at 26% (as of June 1, 2010). According to the Banker magazine (as of July 1, 2010), Sberbank occupied 43 place in terms of the capital assets (tier 1 capital) among the largest banks in the world.

Details about the Client

Project Summary

In July 2009, Neoflex put the integration solution into commercial operation, which connects the information systems involved in the process of lending to individuals in the Central Office of Sberbank of Russia and its Northwest Bank. Until the end of 2009, Neoflex distributed the solution to another seven regional banks within the Sberbank group.

Objectives of the project

The project objective is to transfer Sberbank to the centralized decision-making process on loan applications coming from individuals. The Credit Factory technology is intended to significantly increase the number of pending applications, reduce the time of decision-making on applications from 7 to 1–2 days, and significantly improve the quality of the loan portfolio.

Solution

Implementation of the Credit Factory program demanded the creation of a complex IT-landscape. Its construction works included the introduction of the Experian front-office system which automates the receipt and consideration of loan applications and the development of an integrated solution that provides connection of this system with a wide range of information systems installed in the Central Office of Sberbank of Russia, in its 17 regional banks, as well as in the offices of its partners.

The development of the integration solution was entrusted to Neoflex, the leader in Russia on the number of successful SOA projects for financial institutions.

The Neoflex integration solution provides for:

  • obtaining information on the potential borrower from partners' external information services — Credit Bureaus and other sources;
  • collection and transfer to the loan applications processing system of the information necessary to assess the borrower’s solvency, and the decision to grant a loan, from back-office systems and specialized databases;
  • transfer to the accounting systems of the database according to the approved applications which are necessary for the preparation and opening of credit agreements.

The solution proposed by Neoflex consists of two components: a central integration solution deployed at the Central Office of Sberbank on IBM WebSphere Process Server platform, and local integration solutions that are deployed in its regional banks on IBM WebSphere ESB platform. The transport system, implemented on the basis of IBM WebSphere MQ, provides for the connection between them.

Outcomes

In early July 2009, the first stage of the project, in which integration solution by Neoflex was put into commercial operation in the Central Office of Sberbank and Northwest Bank. It enables the integration of 12 information systems of the Central Office of Sberbank and the Northwest Regional Bank.

These works were a necessary condition for the transition of the Sberbank branches in Moscow and in the North-West region to the sale of loans Credit Factory technology. Even today, Sberbank offers its customers a number of credit products according to this technology.

Until the end of 2009, Neoflex distributed the solution developed to another seven regional banks of Sberbank of Russia.

“We needed a reliable, flexible integration solution capable of handling the flow of loan applications in a wide range of credit products. The complexity of the project was due to the scale of Sberbank — the number of information systems it uses from different developers. As the completed phase of work showed, the solution proposed by Neoflex meets its requirements,” says Viktor Orlovsky commenting the project, CIO at Sberbank of Russia.

“The task set before Neoflex included the creation of an integrated solution that will cover the entire structure of Sberbank and will provide the bank with the opportunity to organize the collection and transmission processes in complex IT-landscapes covering the systems of Sberbank central office, its regional banks and partners,” says Oleg Baranov, Neoflex Managing Partner. “When creating a solution, we have used all the experience that has been gained by Neoflex in previous SOA-projects. This experience is what allowed us to solve tasks in a short time and with proper quality.”

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