PROPRIETARY AND CONFIDENTIAL.

APAR INFOTECH - 2001

Page 1 of 9 White Paper

Banking
Solutions
A white paper

By Apar Infotech
 PROPRIETARY AND CONFIDENTIAL. APAR INFOTECH - 2001

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Introduction

Internet banking is receiving great attention in the banking industry and the
regulatory authorities. This is because Internet banking reflects a more general
interest in the role of the Internet as a vehicle for commercial activity. Banks are
developing Internet banking capabilities at a very rapid pace, with many of the
Banking Solutions
largest banks in the US adopting the delivery of services over the Internet as a
major component of their business strategy.

Technology

To be successful in the new economy, global financial institutions need to deploy a

multi-channel architecture that support all of their delivery channels: mobile,
Internet and real world. A bank will succeed when it will support all of products
and services through one single multi-channel architecture, regardless of whether
the customer’s touch point of choice is an ATM or a POS device in the real world,
a PC over the Internet or through mobile devices in the wireless world.

The benefits of a multi-channel architecture extend to both banks and their

customers. For banks, they offer lower cost of ownership, easier maintenance of
delivery channels, faster time-to-market with new products and services to all
delivery channels, improved customer satisfaction levels, and the infrastructure
for enterprise-wide customer relationship management. For customers, multi-
channel architectures provide a consistent banking experience across all of their
preferred touchpoints. A typical architecture is as shown below:
 PROPRIETARY AND CONFIDENTIAL. APAR INFOTECH - 2001

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PDA Laptop Computer

Satellite dish
Banking Solutions
Internet Private Network
Wireless Network

mCommerce

iCommerce
mBanking

iBanking

Branch
ATM

POS
Delivery
Channels

Multi-Channel Architecture

Legacy
Backoffice

Mainframe Mainframe Mainframe

In the real world, banks offer products and services through branch networks, call
centers, ATMs, home banking applications, and kiosks. Following these core
retail-banking services, they introduced merchant services. In the real world,
banks had to worry about automating branches and connecting them to the head
office to get information from the central mainframe system.

Why APAR?

APAR is strongly positioned to provide end-to-end solutions to banking industry

for its extensive knowledge of the banking space and in-depth understanding in
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the technology space. APAR has built a robust ePayment framework and digital
wallet solutions for many customers.

Retail Banking system (RBS)

APAR has executed numerous assignments in Retail banking sector. Our expertise
include in following areas:
Banking Solutions
Savings, Current and Over-Draft Accounts
• Interest Accrual and Payment Methods
• Funds Transfer Mechanisms
• Tiered Balance based Credit/Debit Interest
• Standing Instructions

Time Deposits
• non/Cumulative
• Int./Payment Options
• Cluster Deposits, Certificates
• Un-Fixed Deposits
• Services/Fees Charges

EBPP, Card Business

• Bill Payment Options
• Credit/Debit/ATM Cards
• Private Label Cards

Loans, Mortgages and Investments

• Loans Applications Processing
• Investment/Portfolio – Retail Brokerage
• Interest/Arrears, Disbursements, Overdue
• Partial Payoffs and Settlements
• Collateral (Property, Insurance, Securities)
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Corporate Banking

Our expertise in corporate banking includes the following areas:

Trade
• LC – Letter of Credit
BC – Bills and Collections
Banking Solutions
•
• LD – Loans and Deposits

Treasury
• SE – Securities Exchange
• MM – Money Markets
• FX – Foreign Exchange
• Instruments Management

Payment
• FT – Funds Transfer
• EM – Electronic Messaging
• NR – Nostro Reconciliation

Utilities
• SI – Sta nding Instructions
• SV – Signature Verification
• RG – Regulatory Guidelines
• Enhanced Inter faces
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APAR has wide exposure in other vertical industries and related technologies. The
various expertise areas are depicted in the following figure:

Utility Companies Financial Services Manufacturing Retail

Banking Solutions
Vertical Bill Presentation E-Banking and E-Procurement Enterprise
Solutions and Payments Internet Payments Store Front

Horizontal Mobile Commerce B-2-B Commerce B-2-C Commerce

Solutions Payments, XML Data exchange, Workflow, Messaging Gateway

Application Application Transaction

Middleware Server Integration Management Database Directory Web Commerce
Server Services Server

Mission-Critical System
Systems Security Quality of Service High Availability
Infrastructure Management
Management
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Payment Gateway

APAR has built their own Payment Gateway (e-Paybridge) to conduct secure
transactions over Internet. The architecture is depicted in following figure:
Banking Solutions

Firewall

E-Brokerage
Other Participating Banks
Payment Gateway
Web Commerce Internet
Internet Server
Bill Payment OFX
SSL SSL Firewall

Transaction Web Commerce Server Banking Server

Invoice Payments OFX
Server and
Admin Console ISO 8583

Leased Line
Internet Shopping TCP/IP - X.25

WAP-SMS
Visa
Mobile Commerce MC
Wireless Network Amex Networks
Prime Settlement Bank

The gateway currently supports following standards:

• Business to Consumer Payments

o ECML Compliance
o Credit Card details protected from Merchant
o Can be extended for Debit Card Payments

• Business to Business Payments

o Support IFX/OFX standards
o Extensible functionality to support customizations
o Support for Payer-Payee relationships security

• Wireless Payments
• Flexibility of supporting default wallets
• One-click payments for WAP enabled phones
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It offers the following features:

• OFX Gateway to support for direct bank account debit

• Credit cards, Debit cards, procurement cards and smart cards
• SET and SSL based transactions support
Banking Solutions
• Future E-Check and Financial EDI integration
• Web Commerce Server Integration
• Real-time authorization and re-authorization
• Automatic settlement
• Fraud detection via API
• Digital Certificates and Digital Signature support
o Encryption
o Authentication
o Non-repudiation

Apar has extensively worked with other related technologies and has acquired in-
depth knowledge about SSL, SET, INTRV, ATM, RSA, crypto APIs, Digital
signatures, TCP/IP, X25, TC500 communication protocols, messaging protocols
like Hypercom, Verifone, Base 1 etc., mobile technologies including mobile phones
with microbrowser, Palm Pilots, Rim Devices, PDAs with Windows CE, WAP,
HDML/WML etc.
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Brief details on various Banking and Payment related Projects undertaken by

Apar…
Multiple projects in areas of B2C, B2B and Mobile Commerce payments have been
implemented / are under progress.

Sl. Region/Country Project Details

Banking Solutions
No
1. Leading B2B Secure Payment Secure data exchange engine for B2B payments
multinational bank Gateway for leading having the following dub-components
in Singapore Bank • Security mechanism – Implements a
specified PKI certificate based security
solution for exchange of the payment
information for various services. Allows
smart card integration for this purpose.
• Basic switching engine – A simple, static
rule based business logic switch to address
each type of transaction.
• Communication Handler - Allows multiple
protocol connectivity options.
• Data Converters – accepts the necessary
payment/service data in the varied form and
convert into the XML/predefined format.
2. Consortium of SET/SSL Payment End to end payment gateway solution for a major
banks in a large Gateway financial consortium to enable payments for B2C,
commercial center B2B using Credit and Debit cards. Enhanced
in Asia Pacific payment features required for debit card support,
region Single sign-on, server based wallets etc. Joint
solution to be proposed with major Systems
Integrator in the region.
3. Mobile Product Mobile Payments Working closely with a mobile payments solution
company in UK using device based vendor to enable payments for physical and internet
wallets worlds using device-based wallets like phones,
palm, Windows CE devices etc. Proving complete
solution for credit and debit solutions and
professional services to rollout the solution in
multiple countries.
5. Leading Payment gateway SSL Payment gateway solution for large bank with
Multinational Bank, solution lot of back end integration. Need to migrate bank to
UK SET solution.
6. Mobile technology Middleware solution As part of a joint partnership with a leading mobile
company, USA vendor for Mobile applications vendor working closely to build e-
Applications payments framework into the mobile applications
middleware solution.
7. Leading E-Brokerage and Complete E-Brokerage Solution with interface to
commercial bank, Internet Banking back end payment gateway solution.
Singapore Solution using
BroadVision