Case Study

FUND TRANSFER SYSTEM

The UAE Fund Transfer System (UAEFTS) is the electronic fund transfer system based on the “Real Time Gross Settlement (RTGS)” principle in the United Arab Emirates, hosted by the Central Bank of the country. The Central Bank of UAE had made it mandatory in 2011 for Banks to upgrade to latest edition of the system (UAEFTS 3.0) in a bid to facilitate the easy and immediate transfer of funds between banks and other financial institutions in the UAE via their accounts held with the Central Bank. The objective was to provide a system that enabled all types of entities to participate, irrespective of their size or nature of business. Failure/Delay on the part of Banks in implementing this facility would have led to their non-compliance with a central bank requirement, besides to obvious dissatisfaction among their clients.

To comply with this stringent guideline, Banks in the UAE were required to implement a robust system capable of handling multiple workflows and millions of individual / corporate credit transfer requests on a monthly basis. The UAE FTS envisaged that The request submitted by any participant had to be processed immediately and final settlement of transfer instructions had to take place continuously, in real time, one by one, without netting debits against credits. All participants could review status of their request during the business hours. The System should have to notify all participants affected by a transfer once any transfer request was processed.

The Banks were given a brief time period to put the required mission critical system in place to achieve compliance with the UAE FTS and offer the fund transfer facility to their clients. This put the Banks in a tight spot since their internal IT teams were not in a position to develop the required software capable of transaction processing in such a short period.

SOLUTION METHODOLOGY

NeST developed a robust product – FTS eDGE for meeting the UAE FTS requirements based on our past experience with implementations of similar Central Bank mediated payment / Compliance solutions, experience in Core Banking solution implementation, enhancement and interfacing and development of plug-in application. NeST FTS eDGE was designed as a complete automation system for Banks and NBFCs in the UAE, with the options for both a straight through processing and a maker/ checker workflow for initiation and verification of transactions, with provision to interface to other financial applications/ Core Banking system in a multitude of ways.

Around 10 leading Banks in the UAE opted for NeST Digital as the vendor of choice for achieving the requisite compliance in the short time period specified. Subsequently, NeST Digital supplied,installed, customized and interfaced our base product, NeST FTS eDGE, to deliver the functionalities required by the banks. NeST’s scope of work for the project were :

  • Carrying out a detailed Systems Study to capture and analyze the user requirements, identifying customization/interfacing requirements for the base product.
  • Supply and installation, of the base product in Bank’s Staging server.
  • Preparation of the Functional Requirement Specifications (FRS), capturing the customisation, enhancement and interfacing requirements.
  • Recommend the hardware and system software required to implement NeST FTS eDGE so that the Bank can make these available for deployment in its Data Centre.
  • Integrate the solution with the existing IT systems of the Bank
  • Conducting User Acceptance Testing in the Bank’s Test environment
  • Provide training to business and technical personnel of the Bank for operation and system administration
  • Provide necessary documentation including user manual and installation guide.
  • Provide post implementation maintenance and support (including enhancements) – on- going since 2011.

Services like design, coding and testing were carried out from NeST Digital’s India office while the systems study, deployment, training and (partially) maintenance & support were carried out at Bank’s office / NeST Digital’s UAE office.

The product has been well proven in the mission critical environments of the Banks in the past years. More Banks later opted for NeST Digital’s product after getting disillusioned by the product and post-implementation support provided by their respective vendors.

About NeST Digital

NeST Digital, part of the US $ 200 m NeST Group, is a premier company specialized in providing software services and solutions to customers from diverse verticals like Aerospace, Banking & Financial Services, Insurance, Utilities, Healthcare , Manufacturing, etc. The company works with multifarious technology platforms, including Microsoft, Oracle, Open Source and legacy (mainframe), and combines domain expertise with proven skills in GIS, enterprise mobility and web technologies to create both custom applications and implement COTS solutions to meet the business requirements of its customers, which include start-ups, SMBs and Fortune 500 companies in equal measure.