Building the SOA Architecture in the Renaissance Credit Bank

Commercial Bank Renaissance Credit has started consumer lending operations in March 2004 and is currently one of the leading Russian market players. The Bank is cooperating with leading retailers in more than forty regions of Russia. Consumer lending is the Bank’s exceptional specialization.

Details about the Client

Project Summary

Renaissance Credit Bank was one of the first in Russia to proceed with building a service-oriented architecture (SOA). By choosing IBM WebSphere family products as a platform, the Bank has transferred the interaction of its core business applications to the integration platform WebSphere ESB (Enterprise Service Bus) in a short time.

At present, the following applications have been connected to the Bank’s service bus:

  • loan application processing system
  • scoring system
  • credit bureau cooperation system
  • counter-fraud system
  • credit management system
  • plastic card management system
  • Russian ABS (accounting).

The most important result of the integration project in the «Renaissance Credit» Bank was the reduction of the processing time of loan applications and increase of the reliability of the loan issuing process. At the same time, the construction of IT-infrastructure in accordance with the SOA principles has created a technological basis to reduce costs and timing of the launch of new credit products.

Services Provided

Background

In early 2006, the “Renaissance Credit” Bank IT-landscape consisted of a number of automated banking systems of different vendors running on different hardware and software platforms. In particular, CapStone Decision Manager (Fair Isaac) decision-support system, Diasoft 5NT back-office system, Way4 (OpenWay) rationing system was used. Many of the key business processes, such as processing of loan applications, involved the interaction of these systems on a real-time basis, which was organized with the help of a file interface.

With the increasing number of loans issued, this method of interaction has become a headache. The time of processing the loan applications started to grow, it became difficult to manage exception conditions arising upon data exchange between the systems.

At the same time, the Bank has initiated the project of the perspective credit management system implementation Profile (Fidelity), as well as several new products, which should also have been integrated into the existing landscape.

Solution

The Bank’s IT-Management has decided to organize the interaction of applications and processes on the basis of SOA (Service Oriented Architecture).

Together with Neoflex, which has become the Bank’s main partner in terms of SOA deployment, a high-level solution architecture has been designed, and the technology platform has been chosen. Preference was given to WebSphere family products by IBM, which is the world leader in the field of SOA technologies and business processes management tools.

Stages

May
2006
September
2006
July
2006
September
2006
October
2006
February
2007
May
2007

May 2006

Neoflex has started implementation of the first project stage.

Transfer to the integration bus of the file interface existing at that time between CapStone Decision Manager and Diasoft 5NT systems, which was used in the process of issuing loans and ceased to satisfy business requirements, has been selected as the primary concern.

September 2006

The first two exchanges have been put into commercial operation via the service bus, resulting in significantly increased speed and reliability of loan applications processing.

July 2006

The Bank has started implementing a unique loan product combining an ordinary consumer loan and a credit card.

The product was developed in the framework of the strategic partnership of the Bank and the IKEA retail chain.

September 2006

Using the integration platform enabled in the shortest possible time to implement the project and to begin selling a new credit product as early as in September 2006.

As part of this stage, Way4 rationing system was further connected to the integration bus.

October 2006

The credit scoring system CapStone Decision Accelerator (Fair Isaac) and the anti-fraud system Hunter (Experian SCOREX) has been connected to the integration bus.

Since then, the cooperation of all the major systems, involved in the business process of loan applications processing, was supported by means of the integration platform, which has become another step in increasing the speed and reliability of business processes.

February 2007

In order to automate the process of obtaining data on the borrower’s credit history, the system of interaction with the Credit Bureau (Credit Registry) was connected to the integration bus.

The new technology has made it possible to improve the quality of lending decisions taken by the use of the information on the borrowers' credit history in the processing each loan application.

May 2007

The promising credit management system Profile (Fidelity) was first connected to the Bank’s integration bus, which is intended to undertake the bulk of the burden of back-office processing of credit agreements in the next few years.

Using WebSphere ESB could substantially reduce the time and costs of inclusion of the Profile system in the Bank’s IT-infrastructure because of the application of ready-made modules, developed during the previous project stages to ensure interoperability with other systems.

Outcomes

In the course of the project, the following applications have been connected to the Bank’s service bus:

  • loan application processing system
  • scoring system
  • credit bureau cooperation system
  • counter-fraud system
  • credit management system
  • plastic card management system
  • Russian ABS (accounting).

The main results of the project are as follows: a substantial increase in the reliability and flexibility of the Bank’s business processes, possibility in principle to implement complex business processes that are tailored to meet the logic of its work.

Interview

Wolfgang Heinrich
Wolfgang Heinrich
Chief Technology Officer

What are the main business reasons for starting the integration project?

Initially, the Bank’s range of IT-systems was determined by the task of quick business start. Applications interaction was organized by file transfer through special mailboxes. With the increasing volumes, the systems interaction mechanism, based on file-sharing, no longer meet business objectives, because the messages most of the time were waiting their turn in these mailboxes.

Why did you choose Neoflex as an integrator?

Neoflex has demonstrated its ability to carry out integration projects based on SOA concepts in other Russian banks. And feedback on the work already carried out was convincing. Moreover, the company has in-depth knowledge of systems should have been integrated, which served as an additional factor when choosing Neoflex.

How do you assess the outputs of the project?

Since September 2006, we commercially exploit WebSphere ESB. We are satisfied with not only the solution performance, but also its flexibility, which allows us to connect new services upon the business demand.

What are your plans for the further development of the project?

We will be adding new services in the WebSphere ESB as new business needs arise. We are working on deployment of WebSphere PS to automate our business processes using the BPEL language. At the same time, the Bank has initiated the project of the perspective credit management system implementation Profile (Fidelity), as well as several new products, which should also have been integrated into the existing landscape.

Back to the list of stories