25 Nov 2014

37 servers get the flick as NAB decommissions old credit risk engine

NAB has decommissioned 37 legacy servers that supported its old Credit Risk Engine, following the successful roll-out of the bank’s new NextGen Credit Risk Engine, a part of the bank’s new Information Analytics Platform.

The decommissioning of the old Credit Risk Engine comes as NAB completed the latest upgrade to the Information Analytics Platform, which has broadened again the scope of customer and transaction data passing through its analytics layer.

NAB Chief Information Officer David Boyle explained the decommissioning of the old Credit Risk Engine is the latest deliverable of NAB’s total technology transformation and comes off the back of the new NextGen Credit Risk Engine being deployed in April 2014.

“We are one of the few banks internationally that is transforming their organisation in such a comprehensive manner, ensuring we can be nimbler and quicker for our customers,” Mr Boyle said.

“As a part of NAB’s transformation, NextGen is enabling simplification in response to growth in digital banking, the demand for integrated customer experiences and the imperative for comprehensive analytics.

“NAB’s Credit Risk Engine is now delivering enhanced risk weighted asset data quality to the bank and is part of a front-to-back NextGen solution, where front-end banking data will pass directly to the consolidated back-end financial, risk and analytics platform.

“Decommissioning the old Credit Risk Engine and its 37 servers will also see a significant drop is NAB’s ongoing maintenance effort and power supply.”

Mr Boyle explained the new Credit Risk Engine provides important strategic and operational benefits to NAB.

“At a strategic level, a common data layer enables both the Credit Risk Engine and related finance and risk applications, such as funds transfer pricing, collective provisioning and cost allocation, to have the same point of reference for data processing.

“We also worked to make the Credit Risk Engine future proofed, by ensuring it sits on a standard commercially available platform that is readily upgraded and maintained as opposed to the old bespoke credit risk engines that many banks have relied on in the past.

“At the operational level, the Credit Risk Engine has been able to assimilate and reflect the changes generated externally by Basel III and other regulatory imperatives as well as providing a material improvement in processing times as compared to the legacy platform.”

NextGen has been NAB’s project to deliver a digital-ready platform for NAB, with a real time core that supports straight-through processing to enable years of digital banking innovation.

The Treasury, Risk and Finance layer was the first of the four major components of digital banking platform to take shape.  The second component was the core servicing foundation visible in UBank, with more than 375,000 customer accounts operating on the platform. The third component was the pooling of customer data in the Oracle Customer Hub, which was completed this year. NAB is now deploying the NAB View customer relationship management tool, which is built on top of the Oracle Customer Hub. The fourth and final component of the banking platform is origination for personal products, with roll out to commence in 2015.

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