Central to the bank's efforts to enhance retail services is the groundbreaking work it is doing serving Java applets from an OS/2-based Web server. The accessibility of CERA Online allows the bank to nimbly react to competitive moves by quickly making new services available to its customers.
The beauty of the system lies in the centralized control from the IBM high-end enterprise server located at headquarters, combined with the capability for wide distribution through CERA Online. The move to this network computing model eliminates the support costs associated with decentralized systems.
CERA's first retail service application, built to the 100% Pure Java standard, is a loan mortgage calculator that allows potential borrowers to estimate payments from their home computers using only a browser. Through this service, the bank reduces loan application processing time.
The loan calculator works as most Java applets do. Customers download the application and run it on their computers no matter what operating system they are running. The easy-to-use program prompts users to enter information such as loan amount, time to borrow and type of payment. The mortgage calculator then returns a payment schedule as well as a yearly breakdown of the remaining principle.
In addition to the mortgage calculator, CERA Bank customers can perform other banking functions such as transferring funds, checking account balances and consulting exchange rates via CERA Online. Rudi Peeters, Electronic Banking Officer at the CERA Bank, explains why the bank launched this project. "Our clients want their bank to be more available at every level to carry out banking operations during off hours. Electronic banking provides an ideal solution for them. Internet access is taking the well-established home banking formula a step further."
Customers with Internet capabilities reach CERA Online as they would any other site. For customers without Internet access, the bank's local branches provide an online service kit, complete with Microsoft browser and IBM dial-up, TCP/IP and security software.
IBM Global Services provides the entry points to the network that lead to the CERA server. As a bonus, the CERA Bank offers its customers one free hour of Internet access through IBM's global network. If a customer wants more Internet time, they can buy IBM Global Services through CERA Bank at the lowest price in Belgium.
The central system, located at CERA headquarters, comprises a firewall for security, IBM Internet Connection Server for OS/2 as the Web server, and IMS host systems. The Web server forms a buffer converting the two-way dialogue between the end user and host into sessions, with logical links between the transactions.
An incoming request is broken down by MQ Series (IBM's message-handling middleware) and sent to the enterprise server. The responses are then batched by MQ Series before being sent back to the client through the Web server. Besides managing the sessions, the Web server dynamically generates browser-readable pages.
The Web server contains no bank information. "We deliberately chose to keep the logic, the applications and the data on the back-end enterprise server," said Mr. Peeters. "This configuration greatly reduces the risk of procedural and security problems."
In addition, CERA Bank asked IBM Denmark to customize a well-known security algorithm to encode any information exchanged between CERA Online and an authenticated user. The resulting encryption software added further safeguards to the system and can be added to CERA Bank's other OS/2 management systems.
CERA Bank was able to both protect and leverage its investments in IBM systems by using an OS/2 Web server to enable secure IMS transactions over the Internet. The architecture of their system provides the benefits of both central control and wide accessibility. Secure system access enables CERA Bank to provide a plethora of services now and in the future. Extra services in a crowded market such as banking are a key competitive advantage.
The centralized control allows the bank to roll out new services quickly in reaction to changing market conditions. Rudi Peeters adds, "Because we have chosen this technology, we can be ready very fast for alternative distribution channels such as interactive television."
The bank's primary use of its new Java applet is to lure new customers. But as more online customers are added, the bank can drive down internal costs by steering more transactions to the Internet. Online transactions are significantly cheaper than those that take place at the branch or over the telephone.
Aside from the marketing use of network computing, CERA Bank intends to consolidate its distributed internal network more centrally via an intranet that the local branches can use. CERA envisions this model being especially important as they acquire and merge with other banks and businesses.
Mr. Peeters sums up the bank's technology choice by saying, "Our clients have cheap and easy access to the Internet, benefiting from maximum flexibility in carrying out their banking transactions. And CERA Bank has laid a solid foundation for many years of electronic banking."