Business Case

Executive Summary

Objective: The objective of the project is to replace Fantastic Bank’s 40-year-old core banking system programmed in COBOL with the latest Temenos Transact R24 core banking system, integrated with third-party applications Paymentus for payments and LendingPad for loan origination.

Expected Outcome: The expected outcome is a modernized, efficient, and customer-friendly core banking system that enhances operational efficiency, reduces maintenance costs, and provides seamless service to the bank's 250,000 customers without disruption during the transition.

Problem Statement

Current Challenges:

• The existing core banking system is 40 years old and programmed in COBOL, making it difficult to maintain and upgrade.
• The legacy system lacks modern features, leading to inefficiencies and increased operational costs.
• The current system poses a risk of service disruption due to its outdated technology.

Need for Modernization:

• To improve operational efficiency and reduce maintenance costs.
• To leverage modern technology for enhanced customer service and experience.
• To mitigate risks associated with the outdated system.

Solution Overview

What is Mike's Fantastic Banking Project:
Mike's Fantastic Banking Project aims to replace the legacy core banking system with the Temenos Transact R24 core banking system while integrating third-party applications Paymentus for payments and LendingPad for loan origination. The project will also include the automation of testing processes using Selenium and ensuring a uniform UX design with different shades of blue.

Types of Solutions:

• Core Banking System Replacement: Implementing Temenos Transact R24 to replace the old COBOL-based system.
• Third-Party Integrations: Integrating Paymentus for payments and LendingPad for loan origination.
• Automated Testing: Developing Selenium code for automated testing.
• UX Design: Ensuring the UX design only uses different shades of blue.

Benefits of Modernization

• Operational Efficiency: Modern core banking system reduces operational complexity and enhances efficiency.
• Cost Reduction: Lower maintenance and operational costs compared to the outdated COBOL system.
• Customer Satisfaction: Improved customer service and experience through modern features and seamless service.
• Risk Mitigation: Reduced risk of service disruption with a robust and updated system.
• Automation: Automated testing ensures higher accuracy and faster implementation.

Implementation Plan

Phase 1:

• Project Initiation and Planning: Define project scope, goals, timelines, and resources.
• Requirement Analysis: Detailed analysis of system requirements and integration points.

Phase 2:

• System Design and Development: Develop the new system, integrate Temenos Transact R24, Paymentus, and LendingPad.
• Code Development: Write code to connect Temenos Transact's APIs and develop Selenium code for automated testing.

Phase 3:

• Testing and Validation: Conduct thorough testing using automated Selenium scripts and validate system performance.
• UX Design Implementation: Apply the UX design using different shades of blue.

Phase 4:

• Data Migration: Migrate data from the old system to the new system, ensuring accounts with $100 or less are purged, closed, and owners refunded.
• Training and Support: Train staff on the new system and provide ongoing support.

Phase 5:

• Deployment and Monitoring: Deploy the new system, monitor performance, and ensure seamless transition without disrupting customer service.

Cost Analysis

Initial Costs:

• Software Licensing: Costs for Temenos Transact R24, Paymentus, and LendingPad licenses.
• Development and Integration: Costs for system development, integration, and code development.

Operational Costs:

• Maintenance: Ongoing maintenance and support costs.
• Training: Costs associated with staff training and support.

ROI Estimation:

• Significant reduction in maintenance costs.
• Improved operational efficiency and customer satisfaction leading to increased business.

Risk Assessment

Technical Risks:

• Integration Challenges: Potential challenges in integrating third-party systems with Temenos Transact.
• Data Migration Risks: Risks associated with data migration and ensuring data integrity.

Mitigation Strategies:

• Comprehensive Testing: Conduct thorough testing to identify and address integration issues.
• Data Validation: Implement robust data validation processes during migration.

Alternatives Considered

• Alternative 1: Upgrading the existing COBOL system. Not viable due to high costs and limited benefits.
• Alternative 2: Implementing a different core banking system. Temenos Transact R24 was chosen for its superior features and compatibility with third-party applications.

Conclusion and Recommendations

Recommendation: Proceed with the implementation of Temenos Transact R24, integrated with Paymentus and LendingPad, and develop automated testing scripts using Selenium. Ensure the UX design follows the specified color scheme.

Next Steps:

• Finalize project scope and plan.
• Begin requirement analysis and system design.
• Develop and integrate the new system.
• Conduct testing, data migration, and staff training.
• Deploy the new system and monitor performance.

Appendices

• Appendix A: Detailed Project Plan
• Appendix B: Cost Breakdown
• Appendix C: Risk Management Plan
• Appendix D: Stakeholder Analysis

Prepared by: Mike Meier
Email: mikemeier@mad-tech.ai
Date: 02/05/2025