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HP BSM for Wholesale PaymentsAn integrated Payments Monitoring solution

HP BSM for Wholesale PaymentsAn integrated Payments Monitoring solution

Optimizing your Payments Processes to drive increased revenues, lower cost of operations and decrease operational risk

Optimizing your Payments Processes to drive increased revenues, lower cost of operations and decrease operational risk

Ken BlackwellDirector, Product Marketing

EXTERNAL FORCES

INTERNAL PRESSURES

Challenges facing Wholesale Banks

Integration and transparency a key to

successful organic growth initiatives

Siloed operations drives high cost and impedes customer

experience

Merged operations result in increased

complexity and cost

Inorganic growth through mergers and

acquisitions

Operational risk elevated to an

enterprise concern

Commoditization of wholesale products and

services

Customer Expectations

OperationalHurdles

3

Wholesale Banking imperativesCustomer Operations Regulatory

• Enable greater visibility and control of payments processing for all customers and all payment types

• Facilitate more effective inquiry around specific or groups of payments

• Improve the ability to quickly identify and respond to day to day operational issues

• Enable the long term transformation of payment processes within the bank

• Align business priorities with IT priorities

• Increase transparency of the process to support operational audits

• Identify and mitigate operational risks impacting the business

Business Service Management (BSM)The Critical First Step

• Most large corporations have successfully implemented many supply chain initiatives and have similar expectations for the banks they work with.

• Before banks can deliver these integrated services they need their own integrated and holistic view of their payments business.

Forrester Research defines BSM as “Software that dynamically links business-focused IT services to underlying IT infrastructure. A business-focused IT service may be specific or part of a business process, but it must support a significant, visible metric for a business owner”.

The Forrester Wave ™: Business Service Management, Q1 2007, March 28, 2007

Consolidated infrastructure operations

• Service impact analysis• Cross-domain correlation and root

cause• Consolidated event and performance• Infrastructure lifecycle management

HP’s BSM PortfolioDriving a top-down business focused agenda for IT

Business availability• Business transaction management• Business service level management• End-user experience• Diagnostics and guided problem isolation

Top-down business view

Bottom-up infrastructure view

UCMDBService

dependency mapping

Discovery services

Incident

Problem

Change

Configuration

Release

Service level

management

Event

Integration with key IT Service Management processes

6April 10, 2023

HP BSM for Wholesale Payments

Increase Operational Efficiency

• Track every single transaction throughout its payment lifecycle• Understand the overall health of the payments process:

− From business process perspective through to supporting infrastructure

• Quickly identify and resolve processing issues that impact the ability to clear all payments before end of day cut-offs

Mitigate Reputational Risk & Drive Up Customer Satisfaction

• Proactively notify customers when there is a disruption in payments processing that might expose them to risk

• Facilitate inquiry to questions such as:− How many payments are in credit check, investigations or repair?

− Which customers submitted these and what is their value?

− What is the average processing time for payments in investigation?

Mitigate Operational

Risk

• More effectively manage the payment flow within the limit of your clearing house intra-day credit

• When issues do occur, make more effective decisions on:− Which payments to process

− Whether to ask for a clearing extension

−How best to manage related customer issues based on customer standing and business impact

HP - Experienc

e Innovatio

n

Business Service Management Benefits

Head of Payments Head of Operations Head of IT

• Enable greater visibility and control of payments processing

• Facilitate more effective inquiries (Where is my Payment?)

• Increase transparency of the process to support operational audits and risk analysis

• Faster identification and response to issues

• At a glance view of key quality and cost KPIs (e.g. STP Rate, Liquidity position)

• Facilitate transformation of payment processes

• Identify and mitigate operational risks

• Faster resolution and prioritization of business impacting issues

• Enable proactive management across complex IT infrastructures

• Align business priorities with IT priorities

Payments Monitoring Requirements Business Managers

• Payment instance lifecycle monitoring, including business attributes−Know there is a problem before your customer−Identify critical high-value payments−Measure service levels for key customers

• Alerts based on aggregate intraday payment activity outside of historic norms−Project your end-of-day position early in the day

• Enabling white label services−Provide direct visibility into the payments process

through web views

Payments Monitoring RequirementsIT Managers

• Payment process visibility to support the business−Relate IT failures to their business impact−Multidimensional monitoring of transactions from

the perspective of customers, payment services, and transaction value

• Reasonable implementation effort and on-going support for vertical integrations with business requirements−Non-intrusive to existing applications &

middleware−Support problem resolution through drill-downs to

culprit application middleware components−Integrated BSM solution from a minimal set of

vendors

Example Business Metrics Monitored by HP BSM for Wholesale PaymentsKey Performance Indicators• Intraday monetary value of

cleared and in-flight payments• STP rate• MTTR - mean time to repair

(automated & manual)• % repair by customer• # valid payments not processed

by cutoff time• # failures over time• MTTP - mean time to process• Ave daily volume• Peak volume (last 2 hours)• Book transfer rate• % Future dated payments

processed• Daily volume in/out (by settlement

network)

Key Risk Indicators• Payment queues bigger than

normal (repair, compliance, etc)• Projected in-flight volume at cut-

off time based on historic performance and today’s volume

• Performance (actual and projected) of key customers’ payments

• Loss of connectivity to clients, settlement channels at key times

• Slowdown in external service providers threatening service levels

• Ability to switch to disaster recovery site

• Ability to recover from point of failure

11 April 10, 2023

Optimize Wholesale Payments processing withBusiness Service Management from HP

Why HP’s BSM solutionCritical to Business Service Management Initiatives

• Complete monitoring coverage, all the way from network path to business transactions

• Business impact analysis based on actual payments

• Auto-discovery of transaction processing routes

• End to end management of business transaction performance and availability

• Look-ahead prediction of business impact based on trends

• Fully integrated solution from a single vendor

Business Impact of Intraday Payments Processing

In-process volume

In-process volume trend

Incoming/Outgoing valueIncoming/Outgoing volume

In-process value

In-process value trend

Search for payment instance by keys

meaningful to business users

Track payments in native currencies…

… and normalized to a common currency

Understand business impact by customer, clearing service,

or any other business or IT dimension

Click to drill down to detailed tracking of end-to-

end payment processing

Integrated Payments Monitoring Architecture

Source: IBM

Web Services

End users

JDBC, PL SQL

MQ

MQ

MQ

Existing payment infrastructure Infrastructure &Application Monitoring

Payment Transaction Tracking

Payment Process Monitoring

Business KPI’s and AlertingBusiness KPI’s and Alerting Payments Monitoring Dashboard

Payment EventsFlow Up

Drill-down toIdentify the Culprit

Visualize complex payment processes in an intuitive model

Quickly identify failures in the process and backlogs

Understand the payment volume and value at each step of the business

process

Bird’s eye view of exception impact on backlogs and STP

End-to-end Monitoring of Payments Business Process

Easily define and monitor on significant Payment KPI’s

Easily define and monitor IT and Business KPI’s

Historical analysis for identifying/improving problem areas

Simple visualization or notification of issues

Payment Transaction Tracking Report

Drill down to view infrastructure details

See a list of all payments in the system, regardless

of where it is in the business process

Find the status of any payment based on time, or business content such as

customer ID

BSM For Wholesale PaymentsSolution Value Proposition Summary

• Increase operational efficiency−Know the status of every payment transaction all the

time−Monitoring the overall health of key payments

processes−Identify and resolve payment processing problems in

time to reduce risk

• Increase customer satisfaction and mitigate Reputation Risk−Proactive notification when a payment is at risk−Greater customer visibility into their payments status

• Mitigate Operational Risk−Measure, monitor, and react to situations that create

exceptional exposures

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The HP difference

Global reach

Number 1 in Business Technology Optimization (BTO) software

• HP understands the needs of the financial services industry with significant presence in the world’s top 200 banks, top 50 brokerages, and the top 50 global insurance carriers

Rich heritage in the Financial Services Industry

• HP is the #6 largest provider of software on the globe

• HP BTO Software brings together trusted brands such as Mercury Interactive and HP OpenView to deliver the richest set of capabilities for optimizing the business outcome of IT

• HP is among the world’s largest IT companies, with revenue totaling $91.7 billion for the four fiscal quarters ended Oct. 31, 2006.

• More than one billion customers in more than 178 countries on five continents

• 150,000 employees worldwide

• 2006 Fortune 500 ranking: No. 11

PRODUCT SPECIFIC BACKUP

HP BSM for Payments – Business Availability Center

Business Service Dashboard

HP Business Availability Center™

Diagnostics(J2EE, .NET, ERP/CRM)

ApplicationMapping

System Availability

Management(SiteScope and Ops

Center)

Service LevelManagement

ProblemIsolation

End UserManagement

(BPM and RUM)

Business Transaction Management

(RUM, TV)

Business ProcessManagement

(BPI)

Foundation

Universal CMDB (Discovery, Federation, Reconciliation, Visualization, Change Tracking)

Alerts and Notifications Enterprise Reporting Third-Party IntegrationService Impact Analysis

HP BSM for Payments – Business Availability Center• HP BSM for Payments emphasizes key products in

the BTO portfolio:−Business Availability Center Dashboard for single-

pane-of-glass presentation of service levels, alerts, and KPIs critical to payments

−HP TransactionVision for instance level monitoring and tracking of automated payment transactions across heterogeneous environments, including payload interrogation of common payment data formats (SWIFT)

−HP Business Process Insight for monitoring the payments business process, including non-automated steps, and reporting IT’s impact back to the business

• Other BAC portfolio products are applicable to most payments environments

• BAC Dashboard provides a single pain of glass−Shows from business and IT contexts the status of

the Payments Business Service

−Enables ‘role based’ views

• Why does this matter?−It allows IT to make decisions based on business

context information

−It gives transparency of Payments Processing into the business to enable better risk actions / plans

HP BSM for Payments -Business Availability Center Dashboard

HP BSM for Payments -Business Availability Center Dashboard

HP BSM for Payments – TransactionVision

• “TransactionVision provides real time, end-to-end visibility into the business services by tracking real transactions”

• Key Attributes:−Non-intrusive; no changes to applications, middleware,

network, …−Auto-discovery of transaction flows−Built-in understanding of common transaction data formats,

including SWIFT−Out-of-box support for common infrastructure technologies, as

well as not-so-common technologies often used in payments (Tandem, Tuxedo, …)

−Built-in integration with HP Business Process Insight−Built-in integration with HP BAC Dashboard and the rest of the

BAC family of products

HP BSM for Payments – TransactionVision

BAC Integration enables context sensitive drilldown into specific TV transaction reports

Transaction Topology view linked from BAC

Real Business impact report/analysis

HP BSM for Payments – HP Business Process Insight

• “HP Business Process insight provide visibility in the performance, availability and effectiveness of key operational business processes”

• Key Attributes:−Up-to-the-minute view into the health & performance

of a business process or process segment −Automatically track and escalate against business level KPIs

& service objectives−Alarm & direct actions from business flow rates,

timings & backlogs−Translate IT service impacts into business impact information−Non-intrusive; no changes to applications, middleware,

network, …−Optimize business process execution

HP BSM for Payments – HP Business Process Insight

Business Process ViewsView business flow rate, track each transaction, highlight bottlenecks and demand changes

Overall and per process step performanceSee duration of each step along with volumes and values of payments flowing through each step

Payment instance viewDrill-down (or find) a specific payment. See payment details, it’s particular route or bottleneck.