FTPS

Fund Transfer Pricing System

FTPS Overview

• FTPS computes FTP Income after Deducting Cost incurred in arranging Funds through Treasury

• It Incorporates both Retail & Commercial Lines of Businesses, Deposits & Loan products

• It provides way to "Mid Office" of Bank to Compute FTP Income Value to Funds Gathered & Lent/ Invested by Commercial & Retail Banking divisions

• It Aims at Creating Scalable Platform for Treasury Operations Related Pricing Calculators

Key Features

• Data ManagementComprehensive Web Based Data Management System with Web Based Reporting Engine & Easy to Use Menu Driven Product

• FTP Calculation for the products specified below• Commercial Loan• Retail Loan• Deposits• Mortgage

• System Maintenance ActivityDatabase Archival, Purging, Restoring can done from the front-end of Product

Key Features

• Upload Feature All the input files required in the system can be uploaded directly from the network drive / server. Basic validation are supported in the application & other validations can be configured

• Reporting EngineUser defined front end based reporting configuration to develop multiple reporting structures & pre defined Reports

• History of RecordsAudit trail of all the entries made in the system with date time stamp, user information stamp etc

Key Features

• Asynchronous Execution of ComputationAsynchronous Execution of computations allows Application users to continue with their processing even if the computation is in process

• Lock/Unlock Utility This utility ensure that data is not uploaded simultaneously by the users

Architecture

User Login

Imported Data User Verification[Operational User]

User Logout

Select As on Date

[Operational, Managerial, Business User]

Import Data and Place on ODS –

Operational Data Source in Database server[Operational User]

Review Import Validation Log

[Operational User]

Review Imported Contract data

[Operational User]

No -Check Input Data

Review Error Log[Operational User]

Review Computed Report

[Operational Users]Compute Cost of Funds

(COF) and FTP Income for Deposits and Loans of Retail and Commercial

[Operational User]

Computed Data User Verification[Managerial User]

Yes

Approve & Lock for a Product and Selected as

on Date [Managerial User]

View and Export Reports for Selected as on Date

[Business User]

Yes

No -Check Computation

Key Modules

• Masters• Product , Currency• Compounding Frequency• Exchange Rate• Non Performing Asset Rate• Premature Withdrawal Charges• Liquidity Premium Matrix• Libor Rate• Interest GL• Adjust FTP Percentage• Retail Penalty Rate• Product Classification• Spread Product Master• Behavior FTP Rate

Key Modules

• Daily Activities Import Data FTP Rate Computation YieldCurve2 FTP Rate

• Contracts Deposit Loan -> Retail Loan Loan -> Commercial Loan NPA Closed / Cancel Cases GL Reconciliation Repayment Schedule Mortgages Contracts

Reports

• Income Report

• Loan Report

• Commercial Loan Report

• NII Report

• Mortgage Report

• Average Balance & Yield Report

• Cash flow report

Technology

Architecture• 3 tier browser based architecture

• Database server – MS SQL server 2008R2 & above / ORACLE 10 & above

• Application server – JAVA, J-boss

• Browser - Firefox, Internet Explorer, Google chrome

• Separate environments for development, UAT & production

Other technical aspects• Ability to log all amendments done on any master data sets viz. Models, parameters, user

information, counterparty data, etc amongst others.

• Effective tracking of any amendments by virtue of predefined audit trail reports which log records of all amendments conducted.

• Any changes made on master data set contents can be easily & effectively tracked on a user level.

• Auditing & logging for data loads, process executions etc.

Implementation

Dedicated program management office for overall management, design & monitoring of solution implementation

Dedicated program management office for overall management, design & monitoring of solution implementation

Establish project scopeEstablish project scope

Understand:- Bank structure- Programme structure- Diagnostic review of as is position- Key decisions / aspirations

Understand:- Bank structure- Programme structure- Diagnostic review of as is position- Key decisions / aspirations

Discuss the drat implementation plan with the bank once the business scope is finalised

Discuss the drat implementation plan with the bank once the business scope is finalised

Business analysisBusiness analysis

Deploy configuration module – through parameterization & static informationDeploy configuration module – through parameterization & static information

Deploy logical data model & overall technical architecture for implementationDeploy logical data model & overall technical architecture for implementation

Model analysis & identificationModel analysis & identification

Formation & deployment of implementation team – system installationFormation & deployment of implementation team – system installation

Design reportsDesign reports

Implement business rulesImplement business rules

Define business rules for implementation

Define business rules for implementation

Identification of project resourcesIdentification of project resources

Detailed action plan for project implementation & management

Detailed action plan for project implementation & management

First implementation run & UAT for output. Resolve pending UAT & client observations First implementation run & UAT for output. Resolve pending UAT & client observations

Go live (data migration, final deployment, go live testing, roll out, reporting) Go live (data migration, final deployment, go live testing, roll out, reporting)

Phase 3Design & implementation phasePhase 3Design & implementation phase

Phase 0Programme initiation phase

Phase 0Programme initiation phase

Phase 1Business analysisPhase 1Business analysis

Phase 2Implementation road map

Phase 2Implementation road map

Critical Success Factor

• Top Management Buy-in is mandatory for Success of Critical Implementation Programs

• Formation of Committed Team from Client & Nucsoft for Implementation

• Complete Involvement from Client’s IT & Business Teams for Data Mapping Exercise

• Planned & Swift Execution of UAT

• Project Plan which is Tightly Monitored at Close Intervals

• Quick Turnaround Time for Requests – for Key Decisions as well as Data

• Good Connectivity available between UAT Environment in Client & Nucsoft Development Environment - to Facilitate Offshore Activities

Thank you