Case study for Payments & Cash Management unit (Nordea Bank)
Problem Definition
Bank in France has joined the SEPA (Single Euro Payment Area) Instant Payment system in 2023. Bank needs to add recently joined banks to payment systems to allow individuals, businesses, and government entities to be able to use the SCT Inst scheme, in the role of either the originator or the beneficiary of a transaction, provided their PSPs have adhered to the SCT Inst scheme.
FRANCE BANQUE DELUBAC & Cie, Address16 PLACE SALEON TERRAS, LE CHEYLARD
Bic code DELUFR22XXX
The maximum amount for a single instant payment is 100k€. Processing is technically available on a 24/7/365 basis. Cross-border instant payment fee is according to the price list and is subject to a change in demand (when a new price list is announced). Customers should be able to initiate payment in Netbank. The processing of SCT Inst, takes place on a transaction-by-transaction basis as soon as they reach a PSP system, i.e. in real-time end-to-end. The maximum time to complete payment is 10 seconds.
Bank X has decided that starting from 1.11.2024 will add Bank in France, FRANCE BANQUE DELUBAC & Cie to its payments systems to enable new cross-border payments for banks’ customers. Therefore, a change in Banks X systems is required: developed, tested, and implemented.
To do:
As a Product Manager, how would you answer the following questions:
1) What would be the steps you’d take to ensure proper development and implementation
of this change?
2) How would you document the requirements for this change in a structured manner?
a. Business requirements
b. Non-functional requirements
3) What are the missing critical attributes for the project?
Solution: Approach to SEPA Instant Payment Integration
1. Steps for development and implementation:
I would try to understand the SEPA Instant Payment System, including its technical specifications, rules, and regulations. Also, I’ll analyze existing SEPA integration for sending and receiving payments to understand current system capabilities and identify any gaps that need modification to accommodate new requirements.
Define and document the scope of the project, including the specific functionalities to be developed or modified, timelines, resources required, and stakeholders involved.
Collaborate with stakeholders from Bank X and France Banque Delubac & Cie, to gather requirements for integrating the new bank into the payment system.
Collaborate with the technical teams to design the solution.
Conduct test cases with various scenarios (successful, failed, maximum amount) and user roles (originator, beneficiary) to ensure the functionality works as intended.
Develop and deliver training materials for the end users and customer support on using SCT Inst functionality.
Implement the changes in a phased approach, ensuring minimal disruption to existing operations, and deploy the updated system.
Monitor system performance and user feedback after launch to ensure smooth operation.
2. Requirement Documentation:
2.1 Business Requirements:
Specify and document the need for integrating France Banque Delubac & Cie into Bank X's payment systems to support SEPA Instant Payments.
Detail the functionalities required for customers to initiate and receive cross-border instant payments.
Define any additional features or enhancements necessary to meet regulatory requirements or customer expectations, and share the business requirement document with relevant stakeholders.
Create a roadmap with project completion targeted at October 31, 2024, and launch on November 1, 2024.
2.2 Non-Functional Requirements:
The Maximum transaction amount should be €100,000.
Netbank interface should be user-friendly, and intuitive.
Real-time processing with a 10-second completion target.
The SCT Inst functionality should be available 24/7/365.
Specify secure measures to protect data and prevent unauthorized access or fraud.
The system’s capability should accommodate future growth in transaction volumes without degradation in performance.
3. Missing Critical Attributes:
Customer Onboarding: Training materials and communication plans for stakeholders (IT, Netbank team, customer support) and customers regarding the new functionality needs to be created.
Go to Market: A strategy to communicate the new SCT Inst functionality to customers and internal stakeholders effectively.
Risk Management: Identify potential risks associated with the integration and develop mitigation strategies to minimize their impact on the project timeline and success.
By addressing these steps, requirements, and missing attributes, we can ensure a smooth development, implementation, and launch of the SEPA Instant Payment integration with France Banque Delubac & Cie.
