In brief
- Strengthen your risk strategy and minimize compliance risks with Hogan x, a robust, regulatory-focused banking solution designed to meet stringent requirements while ensuring business continuity
- The Hogan x blueprint-driven approach accelerates innovation, maximizing your product portfolio's potential for scalable adaptability, transforming developmental processes, and clearing your path to growth
- Discover how to build and maintain an airtight compliance infrastructure and safeguard against potential penalties with Hogan x, Zoreza Global’s upgraded comprehensive and secure hybrid cloud banking solution
Hogan x
As a processor and system of record, Zoreza Global’s Hogan core banking platform has become the driving force behind some of the most influential banks in the world.
Now, we’ve enhanced Hogan’s exceptional mainframe hybrid cloud solution by taking the best IBM Z solutions and providing blueprints for banks with restrictive cores to be “migrated to a modern platform.” Or Hogan x can help you create a new digital, production-ready model bank.
Has the complexity and uncertainty of migrating to a new core banking system or implementing state-of-the-art digital banking services made you think twice? Zoreza Global’s advisory and systems integration solutions enable you to select the best-integrated platforms for your unique requirements. And we’ll design, implement or even run them for you as-a-Service, using a combination of our core architecture, your applications and new fintechs as appropriate combined with mainframe-as-a-service.
Supported by several strong partnerships (notably with IBM), Hogan x provides banks with resilient, reliable and proven banking platforms via practical and economically viable solutions.
Why choose Hogan x
Seamless migration: Having amassed over 40 years of experience in core banking, our team guides you through a smooth transition, minimizing disruption and ensuring data integrity.
Digital banking excellence: Remain competitive by offering your customers a modern and user-friendly digital banking experience and take advantage of a strong ecosystem of FinTech partners.
Scalability: Hogan x hybrid cloud infrastructure allows you to adapt to changing customer demands and market dynamics.
Security and compliance: We deliver peace of mind by prioritizing security and compliance, ensuring your data and transactions are always protected.
Zoreza Global’s Hogan x services
Core banking system migration
Transform your core banking system into a modern, agile and efficient platform. Hogan x migration services include:
- Assessment and planning: Detailed analysis of your current system and the development of a tailored migration plan
- Data migration: Secure transfer of customer data, accounts and transaction history
- Testing and validation: Rigorous testing to ensure a seamless transition
- Training and support: Training sessions for your staff to adapt quickly to the new system
- Post-migration support: Ongoing assistance and support post-migration
Digital banking implementation
Transform your customer experience with Hogan x, which includes:
- An online banking portal: A secure web portal for customers to manage their accounts
- Digital payment solutions: Enable seamless online payments and transfers
- Personalized services: AI-powered recommendations and tailored offerings
- Enhanced security: Multifactor authentication and fraud detection
Hogan x is a complete, scalable, hybrid cloud digital banking solution. Its architecture delivers end-to-end propositions, combining IBM and Zoreza Global intellectual property (IP) with best-in-class components.
Hogan x provides financial institutions with the flexibility and innovation required to excel in today's digital markets. Here’s an outline of Zoreza Global’s IBM’s z16 and the Hogan-aligned approach:
Optimize the core
Business challenge: Having improved their batch processing windows, Hogan clients need to scale to business growth requirements and reduce their carbon footprint.
Business impact: z16’s improved performance capabilities, including the Sysplex latency and scalability improvements (part of the Hogan architecture), will improve the time taken to perform processor-intensive tasks. Updates to tooling, which take advantage of new CPU improvements like the Automatic Binary Optimizer and Compilers, enable existing software to run more efficiently at a lower cost.
IBM’s new cloud-like consumption, pricing and test capabilities provide unrivaled abilities to flex and scale the platform, allowing your bank to respond rapidly to opportunities and developments.
Bringing DevOps into your software engineering process aligns working practices with distributed environments. For example, IBM Application Discovery and Delivery Intelligence (ADDI) provides in-depth application analysis, which, when used in conjunction with the Hogan Discovery Interface (HDI), enables IBM ADDI to work with Hogan applications.
Implementing GIT as your code repository continues this theme of alignment with the rest of the organization and frees investment, unlike traditional source code management (SCM) tools.
Modernize mission-critical applications
Business challenge: AI is often applied outside of the Z platform, which requires data to migrate over networks. This is expensive and unsecure and reduces the ability of banks to score transactions for risk.
Business impact: The IBM Z AI on-chip accelerator enables Hogan and related zLinux workloads to run real-time AI capabilities on the platform where the data currently exists. This improves AI performance, security and cost. Also, activities like automated credit decision-making and loan modification can be done directly on the Z platform, making AI insights and business decisions quicker and easier to perform. Celent estimate that if 100% of transactions were screened each bank could save in the region of $100 million.
Transforming the core and composability
Detailed banking architectures and processes are built into the Hogan core. Zoreza Global is working with IBM and other partners to create a componentized view of core applications. This aligns with the Banking Industry Architecture Network (BIAN) definition of a service landscape (and service domains), creating a granular view of the core application accessed through microservices.
Service domains are the building blocks that support a discrete business capability. And when combined, multiple service domains provide end-to-end business processes and outcomes. External features and functions can be imported at enterprise level via IBM Z hybrid cloud or IBM Red Hat OpenShift on IBM Z and LinuxONE.
Accelerate your digital transformation
Business challenge: Instead of creating custom APIs for individual applications, IBM Z customers want to leverage enterprise-wide APIs and events to enable a faster and more flexible flow of information from core systems on Z.
Business impact: Z Digital Integration Hub and z/OS Connect, in conjunction with Hogan, allow customers to create reusable APIs with clicks, not code, and accelerate back-/front-office integration, enable ecosystem expansion and avoid core-system disruption.
The IBM z/OS Connect Enterprise Edition quickly builds and implements systems of record APIs. As well as employing IBM z/OS Connect, Zoreza Global also developed an infrastructure so the Hogan application could construct the necessary components for APIs on the mainframe. Event-driven architecture for Hogan applications using IBM Z Digital Integration Hub (zDIH) is also in flight. This will enable real-time data extraction and publishing capabilities from Hogan applications.
Adopt a best-fit strategy
Mainframe hybrid cloud architecture allows you to adopt a best-fit strategy for application deployment. Here’s a representative application ecosystem (across IBM Z and cloud) for banking.
The applications are divided into three distinct areas: Digital channels for client engagement, operational processing (e.g., order management, marketing and sales) and core transactions and data (core banking and credit cards). All these applications must work together to share information in real time and maximize their effectiveness to the business. Integration is vital for achieving wholesale interoperability.
A mainframe hybrid cloud model with IBM Mainframes helps clients optimize costs, performance and agility based on their application type and best-fit infrastructure. Take digital channels, for example. A high degree of omnichannel interaction relies on partner and customer-information integration to create the best possible customer experience. This, plus variable change and workloads, make several cloud-based solutions a best-fit choice.
Streamline operational processes
The focus here is on the intelligent automation of business workflows, comprising applications that reside both on-prem (including IBM Mainframes) and in the cloud (of whichever flavor). The choice of infrastructure depends on application availability, resilience and security requirements — the critical factor being that best-fit architecture can be applied as necessary.
As for core transaction systems, the IBM Mainframes mainframe delivers impressive price performance, security, integrity, resiliency and scale. Emerging technologies like AI are leveraged and embedded at each level. To achieve real-time insights, AI inferencing must be co-located with data and transactions. In one case, a large U.S. bank couldn’t score all transactions in real time with an off-platform scoring engine, which caused 80% of transactions to remain unscored.
Innovations like IBM’s Telum processor (on IBM z16) enable clients to incorporate AI into their mission-critical workloads at scale while meeting even the most stringent SLAs.
Get started with Zoreza Global and IBM
A mainframe hybrid cloud architecture that includes IBM Mainframes allows clients to select best-fit infrastructure, optimizing cost, scale and sustainability while reducing duplication and strengthening security. All this while providing modern data access across your application ecosystem.
- Zoreza Global’s Hogan experts build the perfect foundation, optimizing configuration and hardware costs and streamlining the complete migration process. We modernize and create applications, leveraging open tooling, programming languages and cloud-native principles. It’s our way of unlocking the unique value of mainframe applications and data with seamless integration, open API and data access techniques
- You can improve skills and productivity by shifting from waterfall development to an enterprise DevOps process, boosting business agility through continuous integration and continuous deployment (CI/CD) aligned with business priorities. The idea is to exploit AI-driven insights at scale, enabling time-sensitive decision-making and leveraging IT automation to increase productivity and reduce the need for domain-specific skills
- Accelerate time-to-value by drawing on Zoreza Global’s extensive partner ecosystem and proven modernization patterns, acceleration tools and best practices. They include prescriptive guides and showcases for building and deployment on IBM z/OS, IBM Mainframes Linux/IBM® LinuxONE and public clouds.
Simply pick the entry point that best aligns with your business needs and innovation strategy.
IBM z16, Hogan and quantum safety
Speaking of innovation, the prospect of quantum computing is already changing the way we think about one of the most critical banking considerations: how to secure sensitive information and maintain essential application and infrastructure integrity.
Although practical quantum computing is several years down the road, we need to develop quantum-safe cryptographic strategies now while we still have time to consider the business and social impact. Integrating crypto-agility with system modernization will be a massive undertaking for top-tier banks, involving the entire cast of financial services players and standards bodies (e.g., NIST) and underpinned by cross-industry cooperation at all levels.
Any classically encrypted (e.g., public-key cryptography) wire-tappable communications are vulnerable and already at risk, the idea being to “harvest data now, decrypt later” when quantum decryption solutions are finally realized.
The Zoreza Global-IBM partnership is already on it
Zoreza Global and IBM are working to help banks optimize and transform their core banking systems, anticipating lifestyle and offering forward-thinking solutions. The IBM z16 provides extra protection by encrypting data wherever it resides — at rest, in-flight and now, in use with fully homomorphic encryption.
Currently, the combination of Hogan and IBM z16, with its robust data-processing capabilities and enhanced security features like fully homomorphic encryption, enables banks to protect data, ensure compliance and improve the customer experience through faster, frictionless processes.
Homomorphic encryption
Homomorphic encryption is a unique mechanism that resolves security and privacy issues. It allows third-party service providers to perform certain operations on the user's encrypted data without decrypting it. Homomorphic encryption accelerates our clients’ innovation and collaboration with third parties without the risk of sensitive information being compromised. In other words, it helps them deliver better outcomes for their customers.
Owning regulatory accountability
Furthermore, as quantum computing becomes a reality, global regulations, policy and laws will be in an even greater state of flux. Hogan platform compliance is boosted by the IBM Z Security and Compliance Center, now an integrated capability of IBM z16. It enables clients to be always compliance ready. Banking compliance is viewed in near-real time via dashboards and reporting, which reduces the number of employees focused on audit preparations.
Banks improve the customer experience by guaranteeing the tightest data security, developing faster, frictionless processes and providing innovative products and services that are easy to deploy and personalize.
Now, seduced by the benefits and challenged by the growing threat of quantum computing, the ever-increasing computing power of IBM’s z16 puts our banking clients in the security driving seat.
Mainframe hybrid cloud
The Hogan-powered, mainframe hybrid-cloud concept is a popular choice for banks. Adoption allows them to keep their core systems of record — which run well on mainframes — but open them up to greater possibilities. Sensitive data is secured in a fully customizable private cloud infrastructure, and less-sensitive assets are shifted to one or more highly flexible, low-entry-cost public clouds. That said, banks cannot achieve this holistic solution without accurately aligning core and new systems and developing an exceptional customer experience.
Digital modernization eases cloud deployment, but greenfield implementation increases risk and budgetary pressure for a large-scale operation. Banks need to move at least half of their systems to cloud providers to realize even the primary benefits of cloud services. However, this can bring additional risk and inconvenience. While a private cloud might strengthen your control and resolve many compliance challenges, firewalls could inhibit collaboration and innovation.
Six benefits of adopting a mainframe hybrid cloud strategy
Here are the plus points in a nutshell. It enables you to:
- Increase business agility — fail fast, succeed faster
- Release locked-in funds from inactive capital equipment, switching CapEx to OpEX
- Expand scalability
- Improve productivity via user-friendly platforms and dashboards
- Upgrade the user experience by enhancing customer communication
- Deepen partner relationships by collaborating more productively
As our clients continue to adopt mainframe hybrid cloud models, DevOps becomes a central driver, extending agility and controlling the lifecycle. DevOps also promotes stability, greater automation and impact-free implementation.
Now, the Hogan banking suite is even better
Once again, Zoreza Global’s partnership with IBM has added extra value to the Hogan banking suite, including a seamless interface with two IBM tool sets: ADDI and zDIH. Together with Zoreza Global’s unique Hogan expertise, these enhanced solutions are helping banks resolve increasingly complex challenges. Here are four overriding reasons why big global banks choose to partner with Zoreza Global:
- Proven expertise: With over 40 years of banking industry experience, we understand individual banking business needs
- Modern technology: Zoreza Global leverages the latest and emerging technologies to deliver more advanced solutions
- Customization: We tailor Zoreza Global banking software solutions to realize your specific requirements and goals
- Comprehensive support: We're with you every step of the way, from planning to implementation and beyond
Because we’re banking’s biggest supporters
Together with IBM, Zoreza Global helps banks support millions of banking customers and process and protect trillions of dollars’ worth of assets. Achieving business success in an increasingly competitive market requires a tight alignment between business and IT strategies and the effective use of partners. The successful adoption of a mainframe hybrid cloud banking solution isn’t just about the technology; it’s about achieving business goals enabled through a technology partnership. It also relies on the collaboration and guidance we provide throughout the journey. Here are four prime elements that make a strategy effective:
- Customized solutions: By partnering with banks individually, we can tailor Hogan x to their unique needs, ensuring a seamless fit with their existing infrastructure and future goals
- Expert guidance: We act more like a trusted advisor than a simple vendor. Zoreza Global and IBM experts guide banks through the complexities of migration and platform selection, helping them make better-informed decisions
- End-to-end support: Hogan x offers comprehensive support from pre-implementation consultation to post-implementation support. We march alongside our clients throughout the transformation journey
- Relationship building: Building long-term relationships with our banking partners fosters trust and confidence in Hogan x. This approach aligns with our portfolio’s core purpose, emphasizing partnership and empowerment
- Value-driven results: Solution-centric partnering ensures that banks not only buy into our technology but derive maximum value from it, too. We focus on delivering results that positively impact our clients’ operational efficiency, agility and competitiveness
Find out more
To learn more about how Hogan x mainframe hybrid cloud enablement works in practice, visit our website. However, if you’d like to delve deeper and discover what leveraging Zoreza Global’s core banking system modernization and remarkable domain knowledge could do for your bank, contact us.
Duncan Alexander
Duncan leads several existing and new core banking products and services within DXC Zoreza Global’s Global Banking Division. He has over three decades’ experience in the application of business technology to achieve strategic goals across multiple industries, including banking, insurance, retail, travel and logistics. Duncan has provided strategic advisory services and delivered mission-critical systems as a strategic partner to clients and held senior positions within several large enterprises. His main area of focus is the realization of business benefits for our clients from digital transformation.
