cs-131121 Temenos Swissquote PDF
cs-131121 Temenos Swissquote PDF
Swissquote Bank
Achieving extreme efficiency and scalability with
T24 in Java and the Temenos Platform Framework
Contents
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Executive summary
Swissquote the leading Swiss online financial services provider
Core replacement frees up skills for innovation
Temenos T24 in Java and the Platform Framework the perfect fit
The deployment model at Swissquote
Outcome - extreme efficiency and scalability with minimal disruption
T24 in Java: the benefits of a standard platform
The Temenos Platform Framework and enterprise architecture
Executive summary
This study shows how Swissquote, the leading Swiss
online financial services provider, has managed
to secure extremely high levels of efficiency and
scalability throughout its banking value chain by
implementing Temenos T24 in Java and the Temenos
Platform Framework.
The results are remarkable: as of late 2013,
Swissquote served over 205,000 customers with
a back- and middle-office office team of only 41
people, and 99.9% of its processes were completely
automatized with straight-through-processing (STP).
The benefits of the core renovation have fallen
through to the banks overall performance; after
seeing its operating profit margin contract in the
three years to 2010 (the year of the T24 go-live),
Swissquotes margins expanded in the first half of
2013, as costs remained in check while revenue
grew.
205,000
customers served by 41 back & middle office staff
Temenos T24 in Java and the Platform Framework the perfect fit
To address this major constraint to growth, Swissquote decided in
2010 to replace its antiquated core banking system with a modern
third-party solution. Above all, the bank sought a cutting-edge
core banking application entirely dedicated to powering the best
possible banking business and which would be ready for immediate
deployment on the latest generation of standard technical platforms
which Swissquote already used.
A pre-requisite was that the new solution be Java-based to be able to
fully leverage the industry standards on which Swissquotes existing
environment is built. This would ensure that the new core banking
system fit right into the banks existing environment to create a
seamlessly integrated, highly automatized and massively scalable
value chain from end to end. Importantly, by addressing both these
requirements, Swissquote would avoid the expense and dependence
associated with taking on a vendor-specific technical platform.
Of the four vendors examined, Temenos was the only one to offer
a fully operational industry-leading core banking application whose
cutting edge functionality is fully implemented in the Java version.
Also, Temenos was the only contender able to demonstrate a triedand-tested framework the Temenos Platform Framework - which
mediates Temenos T24s banking business capabilities and the
commoditised technical resource management capabilities provided
by Swissquotes application servers. Moreover, only Temenos was able
to present a comprehensive long-term technological roadmap for its
platform framework.
Information
Information
Transaction
Trading
Places
SQB
Orders
Reporting
Risk Control
Accounting
Regulatory
Reporting
T24
Functional
Treasury
Corporate Actions
Coupons / Dividends
Accounting
Controlling
Treasury
QI & EU Witholding
Liquidity
Providers
Clearing
and
Settlement
Web Browser
Web layer
Middleware
Presentation
Message Broker
JEE Application
Server
Business logic
Database
Sources
1 Temenos T24 is database independent and supports, Oracle, DB2, SQL Server. Swissquote uses an
Oracle database.
2 Using JEE servers MDB capability: Message Driven Beans (MDB) are Java EE components that run
T24 core banking functions asynchronously on separate threads to optimise the use of memory and
processor to obtain excellent performance.
Data
DataSource (JDBC)
Sources
3 The JEE application server manages the technical resources for connectivity, scalability, clustering,
database connectivity, and security/authentication which applications need to run as efficiently as
possible.
4 The bank can choose whether or not to leverage the application servers clustering capabilities.
figure a
Cluster
T24 Java
Built-in redundancy
Use full JEE App. Server
scaling facilities
Plugin
Plugin
Multiple clustered
JEE Application Servers
UI Servlet
UI Servlet
MDB
MDB
Message
Broker
T24 Java
Message
Broker
T24 Java
TAFJ
TAFJ
JDBC
JDBC
Scalable Deployment
Network Dispatcher
External Applications
No clustering configuration
required
Easy to maintain
Load Balancing
Race Condition
Empowers JEE Application
Server capabilities
Plugin
Plugin
UI Servlet
MDB
T24 Java
TAFJ
UI Servlet
Message Broker
JDBC
MDB
T24 Java
TAFJ
JDBC
Database
Temenos also runs in the Azure cloud and supports public, private
and hybrid cloud deployment. Temenos is committed to both
cloud and on premises deployment so as to provide the lowest
cost platform for our banking customers.
Together, the six frameworks enable Temenos products to run
on multiple platforms (Java, C and the Cloud) in a fully modular
and componentised packaging, with an event-based code-free
integration capability, built, configured and changed using model
driven development, for deployment with both in-memory OLTP
and column store optimised OLAP data models and servicing user
agents specifically built for banking roles going across Temenos,
non-Temenos and third party services.6 This makes Temenos
products a world-class choice for standard software for any bank
of any size.
Sources
6 As of mid-2013, the following elements of the Enterprise Architecture were still under
development: in-memory and column store capabilities, and packaging T24 as OSGi bundles
rather than a single JAR.
Author
Thomas Krommenacker is Senior Manager in Strategy and Marketing
at Temenos, based in the Geneva Headquarters. He can be contacted
by email at [email protected]
Further contact
For more information about Temenos products or to arrange a
product demonstration, please contact [email protected]
For information regarding re-use of this publication or to obtain other
recent studies, please contact [email protected]
For general enquiries, please visit our website: www.temenos.com
About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN),
Temenos Group AG is the market leading provider of mission-critical
software systems to retail, corporate, universal, private, Islamic,
microfinance and community banks, wealth managers, and other
financial institutions.
Headquartered in Geneva with 59 offices worldwide, Temenos
software is proven in over 1,500 customer deployments in more
than 140 countries across the world. Temenos products provide
advanced technology and rich functionality, incorporating best
practice processes that leverage Temenos expertise around the globe.
Temenos customers are proven to be more profitable than their peers:
in the period 2008-2010, Temenos customers enjoyed on average
a 30% higher return on assets, a 46% higher return on capital and
an 8.5 percentage point lower cost/income ratio than banks running
legacy applications.
The information contained on this report relates to Temenos
information, products and services. It also includes information
contributed by other parties. While all reasonable attempts have been
made to ensure accuracy, currency and reliability of the content in
this report, all information in this report is provided as is. There is no
guarantee as to the completeness, accuracy, timeliness or the results
obtained from the use of this information. No warranty of any kind is
given, express or implied, including, but not limited to warranties of
performance, merchantability and fitness for a particular purpose. In
no event will Temenos be liable to you or anyone else for any decision
made or action taken in reliance on the information in this report
or for any consequential, special or similar damages, even if advised
of the possibility of such damages. Temenos does not accept any
responsibility for any errors or omissions, or for the results obtained
from the use of information contained in this report. Information
obtained from this report should not be used as a substitute for
consultation with Temenos.
Temenos Headquarters SA
2 Rue de lEcole-de-Chimie
CH-1205 Geneva
Switzerland
Tel: +41 22 708 1150
Fax: +41 22 708 1160
www.temenos.com
201311005