Business Case

Executive Summary

Objective: The objective of this project is to seamlessly transition Test Republic Bank's legacy mainframe banking system to Temenos' Transact core banking product, ensuring no disruption to client access and service.

Expected Outcome: The expected outcome is a fully operational, cloud-based core banking system that integrates with existing third-party software, enhances customer experience, and supports automated testing.

Problem Statement

Current Challenges:

• The legacy mainframe banking system is over 30 years old and based on Cobol.
• The system holds all account information for 100,000 retail checking and savings accounts along with other financial products.
• The outdated system poses risks in terms of maintenance, scalability, and integration with modern technologies.

Need for Core Banking Transformation:

• Transitioning to a cloud-based SaaS solution will modernize the bank’s infrastructure, improving reliability and scalability.
• Ensuring no disruption to client access and service during the migration process is critical.
• Compliance and integration with third-party systems like Paymentus and LendingPad are necessary for continued operations.

Solution Overview

What is Temenos' Transact:
Temenos' Transact is a leading cloud-native core banking product designed to modernize and streamline banking operations, offering enhanced scalability, security, and flexibility.

Types of Core Banking Solutions:

• On-Premises Core Banking: Installed and maintained on the bank’s own servers.
• Cloud-Based Core Banking: Hosted on the cloud, offering greater flexibility and lower maintenance costs (this project’s chosen solution).

Benefits of Core Banking Transformation

• Enhanced Security: Cloud-based systems offer robust security measures, protecting sensitive financial data.
• Scalability: Easily scale operations to accommodate growth without significant infrastructure changes.
• Cost Efficiency: Reduced maintenance and operational costs by leveraging SaaS.
• Improved Customer Experience: Seamless user experience with updated UX design and uninterrupted access to accounts.
• Integration Capabilities: Smooth integration with third-party systems like Paymentus and LendingPad.
• Automation: Selenium-based automated testing ensures robust and efficient testing processes.

Implementation Plan

Phase 1:

• Project Planning and Requirement Analysis (Q1 2025)
• Detailed mapping of existing systems and data structures.
• Establish communication channels with Temenos and third-party vendors.

Phase 2:

• Infrastructure Setup and Configuration (Q2 2025)
• Set up the cloud environment and configure Temenos’ Transact.
• Develop integration scripts for Paymentus and LendingPad.

Phase 3:

• Data Migration and Testing (Q3 2025)
• Migrate account data, ensuring accounts with $100 or less are purged and closed.
• Develop and run Selenium automated tests to ensure system integrity.

Phase 4:

• User Training and Soft Launch (Q4 2025)
• Train bank staff on new system functionalities.
• Conduct a soft launch to test system performance and user experience.

Phase 5:

• Final Migration and Go-Live (New Year's Eve, 2025)
• Complete final data migration.
• Ensure all facets of Temenos' Transact are operational without impacting clients.

Cost Analysis

Initial Costs:

• Licensing fees for Temenos' Transact.
• Infrastructure setup costs for cloud environment.
• Data migration and integration costs.

Operational Costs:

• Ongoing subscription fees for Temenos' Transact.
• Maintenance and support costs.
• Costs associated with continuous testing and updates.

ROI Estimation:

• Reduced operational and maintenance costs.
• Increased customer satisfaction and retention.
• Improved operational efficiency and scalability.

Risk Assessment

Technical Risks:

• Data migration errors leading to data loss or corruption.
• Integration issues with third-party systems.

Mitigation Strategies:

• Conduct thorough data validation and testing before migration.
• Collaborate closely with Temenos and third-party vendors to ensure seamless integration.
• Implement a robust backup and recovery plan.

Alternatives Considered

• Maintaining Legacy System: High maintenance costs and lack of scalability made this option impractical.
• Developing a Custom Solution: Higher development costs and longer implementation time compared to adopting a proven SaaS solution.

Conclusion and Recommendations

Recommendation: Proceed with the transition to Temenos' Transact core banking product to modernize Test Republic Bank’s operations, ensuring a seamless and secure customer experience.

Next Steps:

• Finalize project plan and communicate with stakeholders.
• Initiate Phase 1 activities and set up project governance structure.
• Begin detailed system mapping and requirement gathering.

Appendices

• Appendix A: Detailed Project Timeline
• Appendix B: Cost Breakdown
• Appendix C: Risk Mitigation Plan
• Appendix D: Stakeholder Communication Plan

Prepared by: Mike Meier
Email: mikemeier@mad-tech.ai
Date: 05/07/2025