Large Bank in Japan increases re-utilization rate by 18 percent

Bank of Tokyo-Mitsubishi UFJ develops robust SOA platform utilizing WebSphere Message Broker and Linux for System z

Published on 28-Mar-2013

"Without the SOA platform, it would be difficult to build systems to support new services at the speed demanded by management. We have really benefited from developing the SOA platform as a way of resolving management issues." - Mr. Yoshikazu Sato, Systems Infrastructure No.1, Systems Division, Chief Manager, Bank of Tokyo-Mitsubishi UFJ

Customer:
Bank of Tokyo-Mitsubishi UFJ

Industry:
Banking

Deployment country:
Japan

Solution:
System z Software

Overview

The Bank of Tokyo-Mitsubishi UFJ (BTMU) is Japan’s largest bank in terms of assets, with 40 million personal bank accounts and 500,000 corporate clients. The company delivers financial services in over 40 countries.

Business need:
The bank needed to satisfy customer demand for access to financial services anytime, anywhere, through any device, and it sought to launch these new services using only its existing IT assets.

Solution:
As a platform for SOA development, the bank adopted IBM® WebSphere® Message Broker, with its MQ-based, high-throughput messaging backbone which has a successful track record in the financial sector..

Benefits:
With the SOA platform leveraging WebSphere Message Broker the bank has accelerated its ability to build services in response to business issues and has a service re-utilization rate increase of 18 percent.

Case Study

The Bank of Tokyo-Mitsubishi UFJ (BTMU) is Japan’s largest bank in terms of assets, with 40 million personal bank accounts and 500,000 corporate clients. The company delivers financial services in over 40 countries.

Quick launch of new financial services by leveraging existing IT assets

In today's banking environment financial institutions compete on the ability to quickly launch products and services and deliver them through new channels. Banking customers want freedom to execute a full range of transactions anywhere, anytime, and on any device.

As BTMU developed a Service Oriented Architecture (SOA) platform to realize this "cloud-banking" concept it found that long-term effective use of existing business systems and information was essential.

Flexible and scalable SOA

Within two years of beginning its SOA deployment, BTMU expanded its use to all branch offices. "While low-costs and short lead times were the most obvious requirements as we deployed, our biggest priority was to ensure zero impact on existing systems," recalls Mr. Motoyasu Mariko, Systems Infrastructure No.1, Systems Division.

The SOA solution employed the IBM® z® Enterprise 196 mainframe as its platform, with SUSE Linux Enterprise Server as the operating system, divided by IBM logical partitioning. An MQ-based, high throughput messaging backbone was then built using IBM WebSphere Message Broker.

"This runs on two System z mainframes in Active-Active configuration," says Mr Naoto Shinozaki, Infrastructure No.1, Mitsubishi UFJ Information Technology, Ltd. "This not only enables service linkage on z/OS®, Linux and other systems, but also scalability." Mr Kuniaki Nakajima, Systems Infrastructure No.1, Systems Division added the reasons for adopting System z and SLES, “System z’s ability to operate even when resources are at 100 percent utilization has had direct impact on integration effectiveness. In terms of SLES, we liked its compatibility with System z.”

Increasing services re-utilization rate, speeding response to business issues

As one example of the benefits realized, Mr. Mariko points to the bank's credit-card screening process. "Previously, the screening work was outsourced to an administration center, where it went through a nine-step query process. Now, all query work is completed in a single operation at the branch. This streamlines operations and reduces demand on our administrative center resources.”

The SOA platform also linked BTMU systems with the system for The Bank of Japan, allowing the bank to clear large fund transfer data within the Zengin system, Japanese Banks' Payment Clearing Network.

Throughout BTMU, the SOA platform is driving administrative reforms and streamlining branch operations. “The SOA platform with WebSphere Message Broker was released initially to cover three systems and nine services. In two-and-a-half years, use of the platform has been expanded to 23 systems and over 150 services," says Mr Tetsuya Tagami, Systems Infrastructure No.1, Systems Division, Manager.

Along with the rapid increase in services, BTMU has seen growth in the reuse of existing services, with 18 percent of services currently being reused. "We hope to drive more engagements in this area, as improvements in connectivity and reusability lead to improved productivity,” adds Mr. Tagami

Mr. Yoshikazu Sato, Systems Infrastructure No.1, Systems Division, Chief Manager, comments, “Without SOA, it would be difficult to build systems to support new services at the speed demanded by management. We have really benefited from developing the SOA platform as a way of resolving management issues.”

Implementing "intelligent ESB"

Plans for the bank's SOA platform include widening it beyond the Japanese banking system to include links to “overseas systems domains”. BTMU has dispatched engineers to the SUSE Linux on System z backend support team at the IBM Research Lab in Boblingen, Germany for training.

BTMU is currently developing the highest service level ESB environment on System z, but this requires use of the same ESB environment even where system linkage does not require System z service levels. The bank is therefore considering implementation of an "intelligent ESB" for automatically assigning to ESB environments built on lower cost platforms.

“Some services can be reused whereas others cannot, but the workload involved in implementing as a service is not significantly different from distribution work," says Mr. Sato. "We can expect to reap greater benefits as the volume of reusable services increases, and we continue to have high expectations of IBM support as we move forward.

For more information

To learn more about IBM System z software and IBM WebSphere Message Broker software please contact your IBM representative or IBM Business Partner, or visit the following website: ibm.com/software/systemz

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Products and services used

IBM products and services that were used in this case study.

Hardware:
System z: zEnterprise 196 (z196)

Software:
WebSphere Message Broker

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America March 2013 IBM, the IBM logo, ibm.com, System z, WebSphere and zEnterprise are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.