2009 International Conference on Business Intelligence and Financial Engineering
The Architecture and Implementation of the New Generation
Business System in a Commercial Bank
Zhang Sheng
College of Information Engineering
Taiyuan University of technology
Taiyuan, Shanxi, China
zhangsheng@hxb.com.cn
Chang Qing
College of Information Engineering
Taiyuan University of technology
Taiyuan, Shanxi, China
Changqing@163.com
Li Pingping
College of Information Engineering
Taiyuan University of technology
Taiyuan, Shanxi, China
lipingping@163.com
Abstract—At present, there are many problems in domestic
commercial banks. This paper describes the fundamental
solution to these problems through the presentation of a
domestic commercial bank, which integrates various business
channels by centralizing business platforms and altering the
business model based on accounting treatment into the
operation model of customer-oriented. It builds a new
generation of business system that is divided into access layer,
support layer, application service layer and business system
layer which respectively implements the functions of docking
client, unifying data format, exchanging data, database
services and etc. This paper describes the new architecture,
technical support and the physical configuration of the new
system. The new system includes eight application
subsystems ˖ Core and auxiliary systems; EAI-Synthetical
Front-end system; Plug-business system; Agency business
system; Managed application System; Analytic applications
System; Payment, UnionPay and other external front-end
system; Fore-end service channel and their support system.
Meanwhile, take the business process of core business
inquiring and reports printing for example to show the
effectiveness of the new system.
Key words-B-CBS; B-EAI;CRM;C/S
I. INTRODUCTION
After decades of continuously upgrading and expansion,
the current financial IT system platform was formed to
support running of commercial banks in our country.
Confronting the growing volume of transactions, the
business systems based on splicing and supplementing have
been overwhelmed and are not able to suit China's financial
openness after entering WTO. Facing with the increasing
competition existing in domestic and international financial
978-0-7695-3705-4/09 $25.00 © 2009 IEEE
DOI 10.1109/BIFE.2009.119
Zhang Gang
College of Information Engineering
Taiyuan University of technology
Taiyuan, Shanxi, China
tyzhgang@sohu.com
Wang Yan
College of Information Engineering
Taiyuan University of technology
Taiyuan, Shanxi, China
wangyan@163.com
environment, many banks are obliged to adopt the advanced
core system [1] matched with international standards to
rebuild its business system. This paper explains the main
resolving problem and disposing method with the example of
a domestic commercial bank.
II. THE NEW SYSTEM’S ARCHITECTURE
Facing with the domestic and external competition of the
financial environment and the openness of the country's
financial industry, this bank realizes the main problems by
analyzing the existing application system and puts forward
the architecture of its objective application system[2] by
combining the business requirements.
The architecture of the new application system is shown
in Figure 1. It can be seen that the new system, though the
intranet platform, improves the data utilization by integrating
the head office and branches as a whole, which is beneficial
to the cross-regional and overseas business development.
This system can be divided into the access layer, the
technical support layer, the application service layer and the
business systems layer. The access layer is the interface
between the various business and financial systems; the
technical support layer converts the access information to the
data that can be processed by the bank business system; the
application services layer (middleware) achieves the data
transformation between clients and servers; the database
server clusters of the business system layer includes the core
business system and other business systems module.
The new business system falls into 8 application sub-
systems: (1)Core and auxiliary systems; (2)EAI-Synthetical
Front-End[3](SFE) system; (3)Plug-business system;
(4)Agency business system; (5)Managed application system;
(6)Analytic application system; (7)Payment, UnionPay and
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other external front-end system; (8)Fore-end service channel III. TECHNICAL SUPPORT
and their support systems. Plug-business system includes
In order to realize the structure of the new application
Foreign Exchange Card system (FEC), fund business system,
system, the designed technical support [5] blueprint is shown
credit management system, exchange liquidation system and
in Figure 2. The access layer changes the costumer’s data
international service system and so on. Agency business
needed to handle into those that can be identified by protocol
system is composed of FET system, fund sales agent system
layer. The protocol layer includes RMI/IIOP/CORBA,
and treasury and taxation front-end system etc. Managed and
Queues, HTTP/HTTPS/FTP, etc. RMI/IIOP/CORBA
analytic application systems include MIS system, CRM [4]
provide transparent access to the remote distributed objects.
system, Asset-liability management, report platform, other
HTTP/ HTTPS/FTP allow users share files with a remote
subsystem and so on. Service channel supporting system
computer. J2EE application services framework is divided
includes the internet-bank, mobile bank, calling centre,
into expression layer and EBSP application layer. JavaBeans,
message platform and so on.
that can be used repeatedly, is Java components’ technical

Figure 1. The architecture of the new application system

Figure 2. Target system technical support

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specification (including JSP). In J2EE, Session Beans
behaves as a client session, which gets remote service by
calling the conversation components. The XML Web service
is an important distributed computing standard by which it
can be implemented that the connectivity and interoperability
of the cross-platform and cross-programming language
among systems. LDAP is a protocol that distributes the
catalogue information to many different resources. MQ
supports the communication of application program between
different components such as processor, subsystem, OS and
communication protocol network.
IV. CORE BUSINESS SYSTEM PRODUCE
CONFIGURATION
The aim to build world-class bank will come true by
implementing new core system, rebuilding business
processes and following the best empirical examples. The
new generation core business system[6] includes: new core
system, business general ledger system, SFE system, branch
counter system(see shadow portion in Fig. 2).
New core system contains the commercial bank deposits,
loans, payment liquidation and card business. The

Figure 3. The physical configuration of new core business system

Figure 4. The business process of core business IRP system

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production environment configuration is shown in Figure 3.
Two sets of production machines are used to form HA (High
Availability).Using two machines Active-Standby can
guarantee the system to service continuously. In the
following ones, there are two systems to form double-
machines hot backup. They are interface platform system,
interface platform database, reports data extraction system,
B-EAI system, the application software system of new core
system, database software system, SFE system, general
ledger system, general ledger system database and branch
SFE system. Furthermore, SFE system backup and general
ledger system fix in the same host computer, while general
ledger system backup and SFE system in another one.
SFE system is divided into the head office one and the
branch one. General ledger system and SFE system are
divided into three separate parts running in one machine:
SFE system, general ledger system application and general
ledger database. Adopting two host machines is to achieve
Active-Standby. The branch SFE system includes:
intermediary business platform, UnionPay front-end, Central
Bank of large, small-payment, ATM, POS front-end and so
on. The branch SFE systems are concentrated in the head
office and placed on one machine, which is divided into five
separate parts: four branch front-end systems and a front-end
data system, while using two host machines achieves
Active-Standby.
General ledger system receives the accounting data from
financial affairs system, core system, FEC system and fund
business system to marshal the entire general ledgers of the
whole bank. It implements unified data structure of financial
affairs information in commercial bank and supports
financial report, information bulletin and other purposes. At
present, this bank financial general ledger system has been
carried out on-line running, and can not directly use the
original system as the new production machine, so the
general ledger system must adopt “big machine for a small
one” manner at doing the on-line operation with business
general ledger system in the future. When switching with
business ledger system, integrate the financial affair general
ledger and business general ledger system as a whole to run
at the same machine.
V. BUSINESS PROCESS OF THE NEW SYSTEM
In order to illustrate the business process more clearly,
take the core business inquiring and reports printing (IRP)
for example. The short-term goal of the system building is to
generate and print system reports, and achieve integrated
inquiring. The long-term objective is to further set up the
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whole bank’s analytical system, which is based on data
warehouse technology after completing on-line running and
promoting. System users are the tellers of core system's sub-
branch and the management staff of the head office or the
branches relevant business. Figure 4 is the business process
of core business IRP system.
Process is as follows: the entire data of the core system is
daily loaded to the core data extraction platform; the
increased data of the core extraction platform is daily loaded
to IRP system; IRP system preserves historical data; the
business EAI and the general ledger system daily load the
incremental business data into the IRP system which provide
other systems with the data of the general ledger system and
the core business/ business EAI.
VI. CONCLUSIONS
By system rebuilding, the commercial bank solves the
conflict between the original architecture and business
development. Thus it eventually achieves the development
strategy of the “market-oriented, customer-centric”,
possesses rapid reaction capability of answering market
changing, and is able to create new financial products to
attract different customer groups. Ultimately, the
commercial bank can provide industry-leading customer
service with more clear objectives, concise process and
appropriate channels, which could also improve the core
competitiveness of the commercial bank from the whole.
VII. ACKNOWLEDGEMENT
It is a project supported by Chinese National Natural
Science Foundations (No. 60772101).
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