Business Case

Executive Summary

Objective: The objective of the project is to implement Temenos' Transact core banking product to replace Test Republic Bank's legacy mainframe banking system, ensuring seamless transition and continuous access to all client accounts.

Expected Outcome: The expected outcome of the project is the successful migration of 100,000 retail checking and savings accounts, as well as other accounts, to Temenos' Transact by New Year's Eve, 2025. The transition must be smooth with no disruption to client access and include integration with Paymentus and LendingPad, as well as automated testing setup.

Problem Statement

Current Challenges:

• The legacy mainframe banking system is over 30 years old and based on COBOL.
• The system holds all account information and needs to be updated to a modern, cloud-based solution.
• Ensuring no disruption to client access during the transition.

Need for Transition to Temenos' Transact:

• Modernization to a cloud-based SaaS solution.
• Improved system reliability and performance.
• Enhanced integration capabilities with third-party software.
• Automated testing and a consistent user experience.

Solution Overview

What is Transact New Implementation II:

• Temenos' Transact is a core banking product that offers a cloud-based solution for modern banking needs.
• The project will involve migrating all accounts from the legacy system to Transact, ensuring seamless client access and integration with existing third-party systems.

Types of Accounts Affected:

• Retail checking and savings accounts.
• Certificates of Deposit (CDs).
• Money Market accounts.
• Mortgages, credit cards, car loans, and other personal loans.

Benefits of Core Banking System Migration

• Modernization: Transition to a cloud-based system enhances scalability and reduces maintenance costs.
• Improved Client Experience: Seamless access to accounts with a consistent UX using shades of blue.
• Operational Efficiency: Integrates with Paymentus and LendingPad, streamlining operations.
• Automated Testing: Selenium code for automated testing ensures system reliability.
• Data Purging: Closing and refunding accounts with $100 or less reduces data clutter.

Implementation Plan

Phase 1:

• Initial Planning and Analysis (Q3 2025)
  • Detailed project planning.
  • Stakeholder engagement.

Phase 2:

• System Setup and Data Preparation (Q4 2025)
  • Setting up Temenos' Transact.
  • Preparing data for migration.
  • Developing Selenium automated testing scripts.

Phase 3:

• Data Migration and Integration (Q4 2025)
  • Migrating account data.
  • Integrating with Paymentus and LendingPad.

Phase 4:

• Testing and Validation (Q4 2025)
  • Rigorous testing using Selenium.
  • User acceptance testing.

Phase 5:

• Go-Live and Post-Implementation Support (12/31/2025)
  • Final migration.
  • Ensuring all systems are functional.
  • Providing post-implementation support.

Cost Analysis

Initial Costs:

• Licensing fees for Temenos' Transact.
• Initial setup and configuration costs.
• Data migration and integration expenses.

Operational Costs:

• Ongoing SaaS subscription fees.
• Maintenance and support costs.
• Costs for automated testing.

ROI Estimation:

• Reduced maintenance costs compared to the legacy system.
• Improved operational efficiency and client satisfaction.
• Potential revenue growth from enhanced service offerings.

Risk Assessment

Technical Risks:

• Data migration complexity.
• Integration challenges with Paymentus and LendingPad.
• Potential downtime during the transition.

Mitigation Strategies:

• Detailed planning and rigorous testing.
• Backup and recovery plans.
• Close collaboration with Temenos and third-party vendors.

Alternatives Considered

• Alternative 1: Enhancing the existing legacy system.

  • Pros: Lower initial costs.
  • Cons: Limited scalability and modernization capabilities.

• Alternative 2: Custom in-house solution.

  • Pros: Tailored to specific needs.
  • Cons: High development costs and longer implementation time.

Conclusion and Recommendations

Recommendation: Proceed with the implementation of Temenos' Transact to replace the legacy mainframe banking system. This approach offers the best balance of modernization, operational efficiency, and client satisfaction.

Next Steps:

• Finalize project plan and timeline.
• Engage with stakeholders for detailed requirements.
• Begin Phase 1 planning and analysis.

Appendices

• Appendix A: Detailed Project Timeline
• Appendix B: Stakeholder Analysis
• Appendix C: Data Migration Plan
• Appendix D: Integration Testing Plan
• Appendix E: User Acceptance Testing Results

Prepared by: Mike Meier
Email: mikemeier@mad-tech.ai
Date: 04/28/2025