The Unified Banking
Process Framework (UBPF)
Developed and Managed by
The School of Information Systems
Singapore Management University
Created in Collaboration with
Technology and Operations leaders • National Infocomm Comptency
across the Banking industry Framework (NICF), Financial Services
Technical Committee
• Infocomm Development Authority of
Singapore (IDA)
Updated on 20 Feb 09 • Singapore Workforce Development
Agency (WDA)
Main Contributors
SMU School of Information Systems NICF Financial Services Technical
• Sajeeve THOMAS Committee
• Ng Peng Khim, DBS Bank
• Steven MILLER
• Eric CHIA, Goldman Sachs
• Sandeep LAL
• CHANG Chew Lik, NCS
• YEO Loy Khim
• CHONG Tack Chun, IDA
• Michelle CHEONG
• Patrick EARDLEY, Barclays
• SAM Anne Me
Capital
• Gabriel Goh, Citigroup Corporate
Investment Banking
PricewaterhouseCoopers LLP
(Consultants to the Committee) • Kishore KAPOOR, i-flex Solutions
• LIM Lai Ling, UOB Group
• Thyag VENKATESAN
• Steven MILLER, SMU
• Xavier BAUDEZ
• SEE Chim Tiam, Merrill Lynch
Global Services
• SHEE Tse Koon, Standard
Chartered Bank
2
The SMU-Banking Industry initiative develops skills
in Banking Technology across different levels
Retail Investment
Banking Banking, Singapore Management University
Capital Markets Banking Tech & Ops Programme
Unified Masters Level
Banking
Process Professional Short Courses
Framework
Private Corporate &
Undergraduate Level
Banking & Institutional
Wealth Mgmt Banking
Joint effort to develop IT skills
for the banking industry
ATTRACT
PREPARE
RETAIN
3
The 4 Major Business Segments of the Banking Industry
Investment
Banking & Corporate & Private Banking & Wealth Retail
Capital Institutional Banking Mgmt Banking
Markets
Relationship Managers Relationship Managers Sales Staff
Fund Raising Consumer
Consumer
from Capital Trade Finance Corporate FX Deposits &
Loans Investments
Market
Corporate
Wealth Management
Core Banking
Core Banking Service
Services
Securities and
Proprietary Cash Consumer Core
Funds Investment Services
Trading Management Banking Services
Administration
Sales
(Institution)
Corporate
Customer High Net Worth Customer Retail Customer Account
Account Account Trading Trading
Sales (Retail) Trading
Investment houses/ Fund managers
4
Types of Banking Customers and Customer Needs
Individuals Institutions Individuals
Government
• Single/Joint Person • Companies • Local
¾ Consumer Banking - Banking • National
Types ¾ Priority Banking
Typesof
- Non Banking • Supranational
of ¾ Private Banking * Large
Customer
Customer * Medium
* Small
- Joint Accounts
- Partnerships • Non Corporate bodies
- Family Units - Trusts
- Family Businesses - Associations
Investing Financing Receiving/ Managing Support for
Customer
Customer Savings/ Personal/ Paying Portfolio Cross Border
Surplus Business for Services
Needs
Needs Funds Needs
Risk Trade/Projects
Version: 10 June 2008 5
Customer Needs and Bank Management Needs
Customer Financing
Investing Managing Support for
Needs Personal/ Receiving/Paying
Savings/Surplus Portfolio Cross Border
Business for Services
Funds Risk Trade/Projects
Needs
Bank Deposits/ Remittance/ Cash Capital/Currency
Products Loans/Advances Trade/Project
Investments/ Management/ Commodities
Fund Raising Finance
and Insurance Cards Market
Services
Transaction
Fulfillment PROCESS DATA TECHNOLOGY
Enablers
Accounting & Internal Risk Customer,
Financial Management, Sales Force, Systems Design,
Bank Controls, Controls, Distribution Channels, Controls,
Reporting, Reporting, Data & Analytics Production
Management Audits Compliance
Needs
Operations &
Financial Risk Channel
Technology
Management Management Management
Management
Processes, data and technology are the fulfillment enablers for
customer needs and management needs
6
From Initial SMU Banking Process Framework to
Unified Banking Process Framework
2006 - 2007 Cross Product Services Systems and
Banking Technology
Intial Products
Knowledge of end-to-end Cross product services supporting the
process life cycle based on life cycle – Systems that
SMU SIS Knowledge
institutionalof end-to-end
banking Compliance support the
process
products.life cycle based
Banking Process on institutional banking
Risk Management
Product Control and Accounting
trade life cycle
and the cross
Framework products. product
services
2008
Singapore’s This type of knowledge map of
National
banking captures the essential
Infocomm
Competency types of domain, process and
Framework- systems knowledge that an IT
Financial Professional needs to support the
Services working banking business.
group
Late 2008 onward
SMU SIS Revised
UNIFIED BANKING PROCESS FRAMEWORK
Page 7
Process & Systems Knowledge Map for a Banking Business Segment
The overview map captures and covers the types of domain knowledge that IT professionals are
supposed to demonstrate. The knowledge map highlights:
1) The key activities in the end-to-end process life cycle for the products of a specific Banking
Business Segment;
2) The key activities in the internal management & controls (compliance, risk management, product
control), and accounting systems that support:
• Delivery of products across the entire Process Life Cycle, and
• The cross product services
3) The specific technology systems that support the above functions.
Trading Cross Product Services Systems
Products and
Cross product services Technology
Engagement
Customer
Knowledge of supporting the life cycle –
end-to-end Compliance
Generic Process Life Cycle
Systems that
process life cycle Risk Management support the
based on the Product Control and trade life cycle
banking Accounting
Maintenance Fulfillment Acquisition
and the cross
products.
Order
product
services
Transaction
Reviews
Page 8
Unified Banking Process Framework
REGULATORY BODIES
Customers / Market Participants (internal, external)
BANK
1. Bank Lines of Business View: Customers, Products and
Services for Investment, Corporate, Private, Retail
2. Product & 3. Cross Product Support 4. Systems
Process
Knowledge of end-to- Services View (Middle Office) View
Lifecycle
end View
process life cycle
based on institutional Cross product services Application
banking products.
Knowledge of end-to- supporting the life cycle – Systems that
end process life cycle • Compliance support the
based on specific • Risk Management product
banking products. • Product Control through entire
• Accounting process
5. Channel Delivery & Infrastructure Technology View
6. Organization and Sourcing View
7. Process Performance View
8. Total Cost of Process Execution View
9. Change Scenario & Impact Tracing View
Page 9
The ability to manage the linkages between business
process AND the Banking Software Solutions…
1. Understand banking products for each major line-of-business in terms of
a) End-to-end processes and work flows for each family of products
b) Operations functions and jobs supporting the product families
c) IT solutions (architecture, functionality, data management) used for front, middle and
back office functions, corporate functions, and for external interactions
d) Product-Process-Operations-Technology linkages and critical interdependencies
e) How CHANGE events and scenarios (Δ Product, Δ Process, Δ Ops, Δ IT) will impact
end-to-end work flow, service delivery and process performance
2. Able to lead and manage Design-Source-Implement-Operate projects
• IT focused and/or
• Process and operations focused
3. Able to collaborate effectively with senior management across the
various business functions and units of the bank
…to support integrated Business-Process-Technology
analysis, decision making and execution
10
Viewing banking products in terms
of their process life cycle
Creation
Execution
11
Execution Process Life Cycle Summary for Major Banking Segments
Investment Corporate & Private Banking &
Banking Institutional Banking Wealth Management Retail Banking
Fund Capital Corporate Cash Securities and Investment, Retail Individual Retail Retail
Raising Markets, Finance Management Fund Capital Market Services Customer Merchant
& Trading Administration & Corporate Customer
Issuance Services
Customer - Pre trade - Sales - Sales - Sales - Sales - Sales - Sales - Sales
- Account & - Account & - Account & - Account & - Account & - Account & Product - Account &
Engage-
Product Product Setup Product Setup Product Setup Product Setup Point-of-
ment Setup - Credit Facility - Credit Facility Setup - Standing Instructions Sales Device
Setup Setup (Payment & Clearing) Setup
Order - Trade - Contract - Contract - Contract - Contract initiation per
initiation initiation initiation contract
Acquisition
per contract per contract per
contract
Transact- - Post trade - Contract - Contract life - Contract life - Contract - Contract life cycle - Collections/
life cycle cycle tracking till cycle tracking life cycle tracking Clearing
ion
tracking till maturity per till maturity per tracking til - Individual retail through
Fulfilment maturity contract contract maturity transaction fulfilment VISA/ MC/
per per (Cards) AMEX
contract contract - Revolving credit for
outstanding balances
(Cards)
Account - Account - Contract - Account - Contract life - Contract life - Contract - Contract life cycle - Account
Maintenance life cycle Maintenance cycle tracking till cycle tracking life cycle tracking Maintenance
Mainten-
tracking till maturity per till maturity per tracking til - Account
ance maturity contract contract maturity Maintenance
per per - Standing Instructions
contract contract Maintenance
(Payments &
Clearing)
Reviews - Customer - Customer - Consolidated - Customer
- Customer - Customer - Customer - Customer Level
Level Portfolio Level Customer Portfolio Level
Level Level Level Portfolio Portfolio Statement Portfolio
Portfolio Portfolio Management Management Management Portfolio
- Product Level Manageme Management
Management Manageme - Product - Product Level - Customer Profiling
- Product nt Level Review Review across Review across nt and Buying Patterns - Product
Level Review - Product across bank bank bank - Product Level Review
- External Level - Customer Loyalty across bank
across bank Level - External - External
reviews Review Programmes (Credit
- External Review reviews reviews Card Issuance) - External
reviews across across
bank reviews
bank - Third Party Joint Page 12
- External - External Promotions
reviews reviews
12
Key Support & Control Processes that are Common Building
Blocks Across Multiple Segments of Banking
Investment Corporate & Private Banking
Banking Institutional Banking & Retail Banking
Wealth
Management
Fund Capital Corporate Cash Securities Investment, Retail Individual Retail
Raising Markets Finance Management and Fund Capital Services Retail Merchant
& , Administrat- Market & Customer Customer
Issuance Trading ion Corporate
Services
Product Rate Setting
Design &
Setup
X X X X X X X X
Customer
Engagement X X X
Order
Acquisition
Transaction Confirmation
Fulfilment Management,
X X X X X X X X
NOSTRO
Account
Reconciliation
X X X
Account
Maintenance
Reviews Margin
calculations X X X X X X X X
Page 13
