Business Case
Executive Summary
Objective: The objective of the project is to install Temenos' Transact core banking product to replace Test Republic Bank's legacy COBOL-based mainframe banking system, ensuring a seamless transition with no disruption to customer accounts.
Expected Outcome: Successful migration of all accounts from the legacy system to Temenos' cloud-based Transact system by New Year's Eve, 2025, with all facets of the new system up and running, providing a modern and efficient banking experience for customers.
Problem Statement
Current Challenges:
- The legacy mainframe banking system is over 30 years old and COBOL-based.
- It holds all account information for 100,000 retail checking and savings accounts.
- Clients also have CDs, Money Market accounts, mortgages, credit cards, car loans, and other personal loans with the bank.
- The system is outdated and does not support modern banking needs effectively.
Need for Core Banking System Upgrade:
- To move all accounts to a cloud-based SaaS solution.
- To ensure no disruption to clients' access to their accounts during the transition.
- To integrate with third-party payments software from Paymentus and LOS from LendingPad.
- To automate testing using Selenium.
- To ensure the User Experience (UX) adheres to the specific color scheme requirements.
Solution Overview
What is Temenos' Transact?
Temenos' Transact is a modern, cloud-based core banking system designed to support a wide range of banking needs, offering scalability, flexibility, and enhanced security.
Types of Core Banking Systems:
- Legacy Mainframe Systems
- Cloud-based SaaS Solutions
- Hybrid Systems
Benefits of Temenos' Transact Implementation
- Enhanced Efficiency: A modern and efficient system replaces the outdated legacy system.
- Improved Customer Experience: Seamless access to accounts with modern online and mobile banking features.
- Scalability: Scales with the bank's growth and changing needs.
- Security: Enhanced security features to protect customer data.
- Integration: Seamless integration with Paymentus and LendingPad.
- Automation: Automated testing with Selenium ensures robust and reliable system performance.
Implementation Plan
Phase 1:
- Initial planning and requirement gathering.
- Setting up project governance and stakeholder engagement.
- Infrastructure setup for the cloud-based system.
Phase 2:
- Data migration planning and testing.
- Development of integration modules for Paymentus and LendingPad.
- User interface design adhering to the specified color scheme.
Phase 3:
- Pilot migration of a small subset of accounts.
- Extensive testing using Selenium to ensure system reliability.
- Training staff on the new system.
Phase 4:
- Full-scale migration of all accounts.
- Closure and refunding of accounts with $100 or less.
- Go-live preparation and final checks.
Phase 5:
- Go-live on New Year's Eve, 2025.
- Post-implementation support and monitoring.
Cost Analysis
Initial Costs:
- Licensing and setup costs for Temenos' Transact.
- Infrastructure and cloud service costs.
- Development and integration costs.
Operational Costs:
- Ongoing SaaS subscription fees.
- Maintenance and support costs.
- Staff training and development costs.
ROI Estimation:
- Improved operational efficiency and reduced maintenance costs.
- Enhanced customer satisfaction leading to increased customer retention and new customer acquisition.
- Long-term cost savings from cloud-based infrastructure.
Risk Assessment
Technical Risks:
- Data migration errors or loss.
- Integration issues with third-party systems.
- System downtime during the transition.
Mitigation Strategies:
- Extensive testing and validation of data migration processes.
- Thorough integration testing with Paymentus and LendingPad.
- Detailed go-live planning and contingency plans.
Alternatives Considered
- Continuing with the legacy mainframe system (not viable due to outdated technology).
- Implementing a different core banking solution (Temenos' Transact was selected for its superior features and compatibility).
Conclusion and Recommendations
Recommendation:
Proceed with the implementation of Temenos' Transact to replace the legacy mainframe system, ensuring a seamless and efficient transition by New Year's Eve, 2025.
Next Steps:
- Finalize project plan and timeline.
- Engage with stakeholders and communicate the project objectives and timelines.
- Begin Phase 1 activities as per the implementation plan.
Appendices
- Appendix A: Detailed Project Timeline
- Appendix B: Stakeholder Engagement Plan
- Appendix C: Data Migration Strategy
- Appendix D: Integration Plan with Paymentus and LendingPad
- Appendix E: Risk Management Plan
- Appendix F: Training and Support Plan