ocbc payment understanding and scope 2

8/2/2019 OCBC Payment Understanding and Scope 2

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Our Understanding of Payment system:

This may be the general payment system in the banking industry, it may differentat OCBC,or some of below mentioned system would be also available at OCBC.

A payment system can be broadly divided into four components.

• The Delivery channels

• The methods used to Deliver the payments

• The clearing and settlement process

• The actual transfer of funds between the institutions (or bank to bankpayments)

The Delivery channels are the main interface between bank and its customers asshown in the figure below.



-- For Example Cheques Clearing House Structure:

-- For Example Clearing and Settlement process



Payment transactions would be as follows:

Payment transactions Payment tasks

Payment statistics

Payment Search

Search Template

Payment Tasks Edit/Complete instructions

Assign FX Rates

Undo FX Rates

Delete instructions

Batch instructions

Authorized instructions

Edit/Undo Batches

Unauthorized Batches

Sent to Bank

Incoming Inquiries

Stop payment instructions

outgoing stop instructions

Make New payment Telegraphic Transfer

Local Bank transfer

Book transfer

Direct credit

Payroll

Corporate cheque

International bank cheque

Local Bank cheque



Bank to Bank transfer

Advice of cheque

stop payment of cheque

import payments

Payment statistics Incoming Inquiries

Outgoing inquiriesReady send

Ready for authorisation

Drafts(complete/incomplete)

Batch Updated Batch Reference

No of Instructions

Status

Matrix Number

Total Debt BCE

Batched by

Batched on

Status Complete

Batched

Partially signed

Fully signed

Sent to Bank

under processing

stopped

Received

Rejected

Returned

cheque cleared

Received after cut off

Future date

Holiday

sent to alliance bank

Below Applications may be available in the existing Payment, Forex system or itmay very at OCBC that is a pure guess.

The following applications may be available in the Payment

product area

1 Incoming Multiple Financial Institution Transfers

2 Outgoing Multiple Financial Institution Transfers

3 Financial Institution Transfers

4 Branch Office Registration of Outgoing CustomerCredit Transfers

5 Outgoing Domestic Transfers

6 Incoming Customer Credit Transfers



7 Incoming Cheque Settlements

8 Third Party Bank Registration of Outgoing Customer

Credit Transfers

9 Outgoing Cheque Settlements

10 Outgoing Customer Credit Transfers

11 Incoming Multiple Customer Credit Transfers

12 Outgoing Multiple Customer Credit Transfers 13 Outgoing Payments Executor

14 Incoming BACS Payments Executor

16 Outgoing BACS Payments Executor

17 Outgoing Requests for Financial Institution Transfers

18 Incoming Requests for Financial Institution Transfers

19 Outgoing Requests for Customer Credit Transfers

20 Incoming Requests for Customer Credit Transfers

21 Outgoing Securities Payments Executor 22 Incoming Cross Border Customer Direct Debits

23 Outgoing Cross Border Customer Direct Debits

24 Incoming Cross Border Bank Direct Debits

25 Outgoing Cross Border Bank Direct Debits

The following applications may be available in the Forex & Money Market area

1 Forex Deposits

2 Financial Futures

3 Forward Rate Agreements

4 Forex Spot

5 Confirmations Matching System

6 Exotic Options

7 Forex Options

8 Forex Swaps

9 Interest Rate Currency Swaps

10 Interest Rate Swaps

11 Forex Forwards

The following applications may available in the Exposure & Treasury Management area

1 Cash Flow Reporting2 Limits, Lines & Liabilities

3 Portfolio Management

4 Position Keeping

5 Interest Rate Risk Exposure

Mode of Payment



• Bill Payment

• GIRO Payment

o Interbank Giro System:

• Funds Transfer

o Electronics Fund Transfer:



• Telegraphic transfer

• Demand Draft

• PoolZ connect

General Element of Payment systems:

Our Understanding on Foreign Exchange and related Payment System.

It may be not fully valid at OCBC system.

1.Buying and Selling (Buy Deal/Sell Deal) of the Currency/TC (traveler cheques)2.Vault process (both Start of day and End of day process)3.Importation of Rates4.Swap the products within the currency5.Accept/make payment in the system base currency



6.Accept/make payment in non-system base currency-Direct debit7.Handling the Euro currency conversion.

Scope of the Engagement of Validating business requirement asfollows.

We are assuming that mainly Functional and System testing would be mainfocus area, because of the complexity of the system. They are classified asbelow.

Functional Testing.

• Validations at all 4 levels Delivery Channels, Payment methods,clearing house and Bank-to-Bank Payment.

•

Should be able to enter the meaningful transactions at the paymentsystem.

• Should be able to validate that amount against exchange rates(SGD based, USD based, cross) are computed accurately.

• Should be able to validate accuracy of MT messages generated.

• Should be able to validate correct passing of GL entries for transaction.

System Testing.

• Should be able to validate accuracy of financial computation of allremittance amount, customer charges, bank charges, net amount for SHA,BEN & OUR – standard pricing and preferred pricing.

• Should be able to validate that the correct information is being passed tothe respective interfaces (FX, Core banking)

• Should be able to validate that the system picked up the correctcorrespondent agent for STP cases

• Should be able to validate that the system is responding correctly toexceptions encountered during processing – account status, CIF status,funds exception, rates exception, timeout etc

• Should be able to validate that transaction processing conforms toauthorization matrix that is set up for the product/user

• Should be able to validate security functionality against bank’srequirement

In the system testing area, after the system is stable can go for Automation mainly GUI Testing, Regression and Volume/Load testing.

ocbc payment understanding and scope 2

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