New model on how to create a core baking system based upon streaming technologies. Real-time and Cloud based payments.

1. Lagertha
PLATFORM
Banking Platform
Banking Platform as as Service
Payment Processing as a Service
Luis Caldeira & Gian Marco Cabiato
www.orwellg.com

2. Lagertha PLATFORM ?
We like Vikings, Elephants are nice too….. We just prefer
vikings

3. INTRODUCTION
BANKING SOLUTIONS AS A SERVICE
01
02
03
04
05
Regulated Cash Management &
Borderless Banking Model
Breakthrough Payments Technology
Open Banking and PSD2 compliant
White Label for Banks
Suite of Treasury, Payments and Loyalty
solutons for Corporates

4. INTRODUCTION
BANKING SOLUTIONS AS A SERVICE
Technology In Financial Services
Today's challenges and future thoughts

Complex estates that have been running since the late 60’s and
70’s.

How to manage change in these large estates to migrate to newer
technology.

Complexity is not just hardware and software but offered products
and lifespan of those products, some entities that number can be
more than 40000 different products.
Today’s institutions offer greater
ranges of products, some moved
to other areas like Insurance.
IT is the main enabler of the
banking offers and has large
delivery cycles and large costs as
part of the processes that must be
followed.
Business have lost of knowledge
even from their internal operations
by outsourcing or large use of
consultants.

5. INTRODUCTION
BANKING SOLUTIONS AS A SERVICE
How we look at a fnancial institution
Current accounts Cards
Bank transfer Standing orders
Direct Debits Overdrafts
Loans Mortgages
Savings Term Deposits
Investments Guaranties
INDIVIDUALS BUSINESS MERCHANTSCORPORATES
KYC
Overdrafts
Loans Mortgages
Savings
Term
Deposits
Investments Guaranties
Current accounts Cards
Bank transfer Standing orders
Direct Debits
INDIVIDUALS BUSINESS MERCHANTSCORPORATES
KYC
DISTRIBUTION
PRODUCTS
CASH
MANAGEMENT
DEPOSIT
TAKING

6. INTRODUCTION
BANKING SOLUTIONS AS A SERVICE
How can we address the challenges and
provide bleeding edge technology at
best possible cost ?

7. BANKING SOLUTIONS AS A SERVICE
What principles should we make use of ?
INTRODUCTION

Micro-services.

Performance

Features

Data Quality
Operational
Analytical
API
Gateway
Stack Model.
Information is everything, like water,
flows and you want to store as much
as possible.
Models evolve don't think tables think
characteristics and relationships.
There is no one fnal answer but some
concepts are very constant so we can
employ some common sense.

8. BANKING SOLUTIONS AS A SERVICE
After some time and some exhausted brain cells….
INTRODUCTION The idea was to have a very high
performance, cloud based system that
allows us to create a core banking system
and fnancial supply chain in very short
period.
Use real-time approach to banking in a
distributed context that provides high
consistency, reliability at low operational
cost.
…. We mean a full bank, not just payments
or account/cash management.

9. BANKING SOLUTIONS AS A SERVICE
We have a list of technologies we can and a solution
approach but how do we design it and get it to market ?
TECHNOLOGY
We look at banking in a different way not
as a number on a database but as a set of
changes on accounts.
A balance is just the state at a certain point
in time that can vary faster or slower
depending on operations.
Not important for a process run faster but
how parallel can we run operations there
is where cost saving lies.

10. BANKING SOLUTIONS AS A SERVICE
Should we start from scratch or are there any other
options ?
TECHNOLOGY 
In low volumes the existing pattern’s are a
solution but as we increase the volume high
parallelism will impact the system.

NoSQL databases can be a solution to increased
performance but we have to look at playing with
availability and consistency.

Is trying to get the best of both worlds. Doesn't
violate CAP but makes things optimal in some
way.

We looked at the different areas to provide the most complete
support for all solutions element.
Operational Analytical

Hortonworks HDF is part of the core of the banking system. This
means we have a distributed, stream based banking system.

11. BANKING SOLUTIONS AS A SERVICE
As part of the design of the operational system we
looked at:
ARCHITECTURE
Streaming elements
that control the data
flows and DSL control.
Security and One central control unit
that manages all baking components.
Used to prototype
small flows before
building topologies
At Orwell we not only developed the best technology
models but had a very strong focus on information. The
platform model created from scratch is based upon
complex contractual law and fnancial concepts
We make use of the Party-Contract-Product Held
principles pioneered in other entities. This allows the
defnitions of complex products with customized
characteristics that can be built and test in a matter of days
or weeks.
The model is design to allows complex relationships to be
defned between participants for example a company
having users that manage their own self-service banking
products

12. BANKING SOLUTIONS AS A SERVICE
The Principle of the design
ARCHITECTURE
Kappa Architecture is a software architecture
pattern. Rather than using a relational DB like
SQL or a key-value store like Cassandra, the
canonical data store in a Kappa Architecture
system is an Apache Kafka append-only
immutable log.
From the log, data is streamed through a
computational system and fed into auxiliary stores
for serving.

13. BANKING SOLUTIONS AS A SERVICE
How operations are tracked ?
ARCHITECTURE
The model supports:
Accounts that require a state that moves with time
and have limits (product limits, fees or facilities)
applied to it.
Accounts that record transaction, a direct log of
operations and not states
DSL Mapper is a domain boundary system that
generates a command with the necessary datasets
that allow a seamless execution of the operation at
next stages. These are used to implement, for
example, payment engines.
Monitoring is Built using the Same technologies,
Apache Storm, KAFKA Streams and Apache Spark
The system centralises the Keys generaton.
This means every operaton can be tracked in real type across the
distributed system. A good example is the monitoring system.

14. BANKING SOLUTIONS AS A SERVICE
The Accounting system, a distributed, high performance
stream system
ARCHITECTURE • The Follower processors are consumers of
the processed log from the leader
Processor.
• Water marks from the original log itself,
each will have a full copy of the information
available from the lead. This mean async
replication that allows replay without
duplication and same model as the
processor start fail-over recovery model.
On a two node accounting system we can process

Process more than 12000 payments per second.

More than 3000 transactions per second on a single account.

15. BANKING SOLUTIONS AS A SERVICE
How to approach support and Platform management ?
MANAGEMENT
Not Only we make use of the HDF facilities we are integrating
all our services into Ambari to have one single control console
for all the banking operations.
Monitoring & Audit are business requirements
even when the business doesn't know. First
item a regulator looks at its at the audibility of
processes.
We want to know what , when, how and
actions we have taken. We don't want the
developers to spend lots of time thinking about
it.
Small support teams with all necessary
information operate more effciently and a
lower operational cost.

16. BANKING SOLUTIONS AS A SERVICE
UK Faster Payments Model
The Faster payments system is fully integrated with the
platform architecture. There are 3 stages
• The Connectors that interact with the gateways
and external system. We have or are building
connectors for all payments schemes.
• The DSL’s (domain subject language) that
understand the payments scheme as well as
banking. They transform the request into a banking
core language.
• The Processors, programmable engines that can
apply accounting rules and manage accounts.
The FPS flow has an automated monitoring monitoring
system reusing the technology of the core to monitor
every step of execution for full E2E tracking and audit.
Every FPS execution has its own tracking ID that
allows us to at any point query results or event monitor
system liquidity.
ARCHITECTURE

17. Local RegistryLocal Registry
Local RegistryLocal Registry
Local RegistryLocal Registry
SystemSystem
SystemSystem
SystemSystem
Broadcast – 128bit Account
Number Hash
Broadcast – 128bit Account
Number Hash
DHT Based
Network
Make Payment
Make Payment
Communication between instances
The system is designed to have multiple instances across multiple public
clouds, this means each system must be instance aware.
UK
Germany
US
Instance ID
Instance ID
Instance ID
Account Key
(64Bit)
Account Key
(64Bit)
Instance
ID
Instance
ID
Account Naming Structure to allow Routng
Automated Discovery of
Network partcipants
UUIDs:
That are
customized
identfers
Like email
BANKING SOLUTIONS AS A SERVICE
TECHNOLOGY

18. DEPLOYMENT
• CICD is not just the latest IT buzz word. It efectvely allows faster
delivery of solutons as well as faster validaton of those solutons.
• Use of Apache Ambari for automated Applicaton deployment and
control.
BANKING SOLUTIONS AS A SERVICE
Why use CICD (Contnuous Integraton Contnuous Delivery) and
infrastructure as code?
Another important element is the automation
the process brings, e.g.
Automated Code validation.
Automated Builds
Proper version control
Multi-version support, multi-client
Infrastructure as code allow us to create
environments that simulate production
scenarios.
Better rate of development
Better quality of overall product.
Less time loss of manually creating and
confguring environments.
Deploy in every scenario, Private, Public
Clouds or on premise

19. BANKING SOLUTIONS AS A SERVICE
DEPLOYMENT

20. BANKING SOLUTIONS AS A SERVICE
TECHNOLOGY
How can a banking platorm improve customer experience ?
Its not just about gathering informaton but about creatng a
unique experience, reducing the learning curve of learning to
use applicatons, reduce fraud and beter target product to the
customer.

21. BANKING SOLUTIONS AS A SERVICE
TECHNOLOGY
How can a banking platform improve customer
experience ?
One of the design decisions of the platform is the
intention to allow a fast paced evolution of features
and facilities. From this principle we created two
rules:
1. Information should be used to learn and improved
how customers interact with their applications.
2. The best developer experience is connected to
the best customer experience
The system is designed to record all internal
activities to learn from its on execution of processes
so we have taken the same approach for customers.
Policy
Improve
Interactons
Understand
Behavior
1. Create an enum-based list of events you want to track
enum LoginEvent {
case loginButonTapped
case loginSuccess(username: String)
// More events...
}
2. Confgure the instance of AnalytcsManager
extension AnalytcsManager {
statc var shared: AnalytcsManager {
let cocoaMQTT = CocoaMQTT.shared
let client = MQTTClient(client: cocoaMQTT)
cocoaMQTT.delegate = client
client.connect()
let analytcs = AnalytcsManager(engine:
MQTTAnalytcsEngine(client: client))
return analytcs
}
}

22. BANKING SOLUTIONS AS A SERVICE
TECHNOLOGY
How can a banking platform improve customer experience ?
So how do I scale the system ?
Same way to scale HDF :)
Just add processors and request the
system to re-balance the account
ranges.
KAFKA can create topics on demand.
The processors will talk to each other to
agree who owns the account on re-
balance.

23. BANKING SOLUTIONS AS A SERVICE
TECHNOLOGY
How can a banking platform improve customer experience ?

24. BANKING SOLUTIONS AS A SERVICE
BUSINESS
3rd Party Integrations
• Addition of third party services is simple. Orwell can
integrate with any fnancial or other service with simplicity.
• Orwell is already connected to:
• CBILL (Italian bill payment service)
• Currency Cloud (FX and international FX payments)
• TransferTo (international payments and mobile phone
pre-payment)
• MAV/RAV (Italian taxes)
• Bolatino P (Public admin); Bolatino B (Billers)
• We are connecting to: ApplePay, Kantox

25. BANKING SOLUTIONS AS A SERVICE
BUSINESS
Orwell delivers instant payments (even cross border
and cross currency)
Instant
payments
even cross
border and
cross currency
Elimination of
card
payments
costs
Enables
innovation in
operations and
customer
relationships
Reduced needs of
working capital
by eliminating
“money in transit”
More capital
available for
investment of
distributions
Cheaper treasury
operations and
elimination of
interchange
Better control of
supply and
distribution
chains
RTP & VAS
enhances client
relations and
improves
transparency
Subscription
based revenue
model

26. BANKING SOLUTIONS AS A SERVICE
CONCLUSION

The use of Hortonworks Data Flow allows us to create a banking
system in less than 9 month including certifcations. Satisfy the
support levels required by regulators.

No need for batch operations, the system can process effciently
so that batching is not necessary.

No database limitations.

27. BANKING SOLUTIONS AS A SERVICE
CONCLUSION

Better customer experience. Specially for corporate banking.
Fast Prototyping with SAM

Allow processing time for other operations like sanctions and
reduce risk.

Effcient capacity management.

Real-time MI, analytics, use of ML algorithms to manage flows,
etc

28. BANKING SOLUTIONS AS A SERVICE
THE END
Thank you