Business Case

Executive Summary

Objective: Install Temenos' Transact core banking product, replacing our legacy mainframe banking system to modernize our infrastructure, enhance operational efficiency, and ensure uninterrupted service to our clients.

Expected Outcome: Successful migration of all accounts from the legacy system to the cloud-based Temenos Transact platform by New Year's Eve, 2024, with no disruption to account access and functionality.

Problem Statement

Current Challenges:

• Legacy mainframe banking system is over 30 years old, Cobol-based.
• System holds account information for 100,000 retail checking and savings accounts, plus a variety of other financial products.
• Need to ensure continuous access for clients during the migration process.
• Integration required with third-party payments software (Paymentus) and LOS (LendingPad).
• Ensure UX adheres to the brand's color scheme (different shades of blue).

Need for Core Banking System Overhaul:

• Modernize outdated infrastructure to a cloud-based SaaS solution.
• Improve operational efficiency and reduce maintenance costs.
• Enhance customer experience with a more user-friendly and reliable system.
• Ensure compliance with industry standards and future-proof the banking platform.

Solution Overview

What is Temenos Transact Implementation Test Republic 3:

• A project to transition Test Republic Bank's core banking operations from a 30-year-old Cobol-based mainframe to Temenos' Transact cloud-based SaaS solution.

Types of Core Banking System Implementation:

• Full System Replacement: Complete migration to a new core system, decommissioning the legacy system entirely.
• Phased Migration: Gradual migration of functionalities and accounts to minimize risk and ensure a smooth transition.

Benefits of Core Banking System Implementation

• Operational Efficiency: Streamlined processes and reduced maintenance costs.
• Enhanced Customer Experience: Improved interface and accessibility, aligning with modern banking expectations.
• Scalability: Cloud-based solution allows for easy scaling to accommodate growth.
• Security and Compliance: Enhanced security features and compliance with modern banking regulations.
• Data Integration: Better integration with third-party systems for payments and loan servicing.

Implementation Plan

Phase 1:

• Assessment and Planning
  • Detailed analysis of current systems and data.
  • Development of a comprehensive migration strategy.
  • Initial setup of Temenos Transact environment.

Phase 2:

• Data Migration and Testing
  • Migration of account data, excluding accounts with $100 or less.
  • Automated testing using Selenium to ensure data integrity and system functionality.
  • Integration with Paymentus and LendingPad.

Phase 3:

• User Acceptance Testing (UAT) and Training
  • Extensive UAT to ensure all functionalities are performing as expected.
  • Training sessions for staff on the new system.

Phase 4:

• Final Migration and Go-Live
  • Final data migration and system checks.
  • Go-live on New Year's Eve, 2024.
  • Post-migration support and monitoring to ensure stability.

Cost Analysis

Initial Costs:

• Software Licensing: $X
• Hardware and Infrastructure: $X
• Professional Services (Consulting, Implementation): $X

Operational Costs:

• Annual SaaS Subscription: $X
• Maintenance and Support: $X

ROI Estimation:

• Tangible benefits from reduced operational costs and improved efficiency.
• Intangible benefits from enhanced customer satisfaction and future-proofing the platform.

Risk Assessment

Technical Risks:

• Data migration errors leading to potential data loss or corruption.
• Integration challenges with third-party systems (Paymentus, LendingPad).

Mitigation Strategies:

• Comprehensive data validation and reconciliation processes.
• Rigorous testing and contingency plans for integration issues.
• Continuous monitoring and support post go-live.

Alternatives Considered

1. Maintain Legacy System:

   • Pros: No immediate costs or risks associated with migration.
   • Cons: Increasing maintenance costs, operational inefficiencies, and inability to scale.

2. Incremental Upgrades:

   • Pros: Lower initial costs and reduced risk.
   • Cons: Prolonged transition period, potential for prolonged disruptions, and partial benefits realization.

Conclusion and Recommendations

Recommendation:

• Proceed with the Temenos Transact Implementation Test Republic 3 project to achieve a modern, efficient, and scalable core banking system with minimal disruption to clients.

Next Steps:

1. Finalize project plan and timelines.
2. Secure necessary resources and budget approval.
3. Initiate Phase 1 with detailed assessments and planning.

Appendices

• Appendix A: Detailed Cost Breakdown
• Appendix B: Project Timeline
• Appendix C: Risk Management Plan
• Appendix D: Data Migration Strategy
• Appendix E: User Training Plan