Business Case

Executive Summary

Objective: The objective of the project is to successfully implement Temenos' Transact core banking product to replace Test Republic Bank's legacy mainframe banking system.

Expected Outcome: The expected outcome of the project is to transition all account information from the legacy mainframe system to the new cloud-based SaaS solution without disrupting client access to their accounts. This includes purging and closing accounts with $100 or less, integrating with third-party systems, and ensuring the new system is fully operational by New Year's Eve, 2025.

Problem Statement

Current Challenges: The legacy mainframe banking system is over 30 years old and Cobol-based. It holds critical account information for 100,000 retail checking and savings accounts as well as additional financial products. The outdated system poses significant risks to operational efficiency and customer satisfaction.

Need for Core Banking System Upgrade:

• Enhanced security and compliance with modern standards.
• Improved operational efficiency and reduced maintenance costs.
• Greater scalability and flexibility with a cloud-based solution.
• Seamless integration with third-party applications.
• A modernized user experience.

Solution Overview

What is Transact New Implementation: The project involves the installation of Temenos' Transact core banking product, a cloud-based SaaS solution, to replace the legacy mainframe system. The implementation will ensure that all account data is transitioned without interruption to client access.

Types of Core Banking Systems:

• Legacy Systems: Often custom-built, on-premises solutions that require extensive maintenance and lack modern features.
• Cloud-Based SaaS Solutions: Modern, scalable, and flexible systems that offer enhanced security, compliance, and integration capabilities.

Benefits of Core Banking System Upgrade

• Increased Operational Efficiency: Automated processes and reduced manual intervention.
• Enhanced Security: Compliance with modern security standards.
• Improved Customer Experience: Modern UX with a focus on usability and accessibility.
• Scalability: Ability to handle growing customer base and transaction volumes.
• Cost Savings: Reduced maintenance and operational costs with cloud-based solutions.
• Seamless Integration: Compatibility with third-party applications like Paymentus and LendingPad.

Implementation Plan

Phase 1:

• Project Planning and Requirement Gathering
• Stakeholder Engagement and Communication Plan
• Initial System Setup and Configuration

Phase 2:

• Data Migration Strategy Development
• Integration with Paymentus and LendingPad
• Development of Selenium Automation Scripts for Testing

Phase 3:

• Data Migration and Account Purge Execution
• User Acceptance Testing (UAT)
• Training for Bank Staff

Phase 4:

• Final System Testing and Validation
• Go-Live Preparation
• System Go-Live on New Year's Eve, 2025

Cost Analysis

Initial Costs:

• Licensing and Subscription Fees for Temenos' Transact
• Integration and Development Costs
• Data Migration and Purge Execution Costs

Operational Costs:

• Ongoing Subscription Fees
• Maintenance and Support Costs
• Continuous Integration and Testing Costs

ROI Estimation:

• Anticipated ROI from increased operational efficiency, reduced maintenance costs, and improved customer satisfaction.

Risk Assessment

Technical Risks:

• Data Migration Errors
• System Downtime During Transition
• Integration Failures with Paymentus and LendingPad

Mitigation Strategies:

• Comprehensive Testing and Validation
• Robust Data Backup and Recovery Plan
• Close Collaboration with Temenos and Third-Party Vendors

Alternatives Considered

• Retaining Legacy System: Continued high maintenance costs and operational inefficiencies.
• Other Core Banking Solutions: Evaluated but found to be less suitable in terms of features and integration capabilities.

Conclusion and Recommendations

Recommendation: Proceed with the implementation of Temenos' Transact core banking product as it best meets the needs of Test Republic Bank, offering modern features, scalability, and seamless integration.

Next Steps:

• Finalize Project Plan and Timeline
• Engage with Temenos and Third-Party Vendors
• Initiate Phase 1 Activities

Appendices

• Appendix A: Detailed Project Timeline
• Appendix B: Data Migration Strategy
• Appendix C: Stakeholder Communication Plan
• Appendix D: Risk Management Plan