Modernizing Core Banking with Transact Upgrade from R17 TAFC to R21 TAFJ for an Eastern European Bank
A mid-sized commercial bank in Eastern Europe undertook a critical upgrade of its Temenos Transact core banking system, moving from R17 on the TAFC (Temenos Application Framework for COBOL) platform to R21 on TAFJ (Temenos Application Framework for Java).
This strategic move was driven by the need to modernize the underlying technology stack, reduce legacy dependency, and align with the bank’s long-term digital transformation roadmap.
The upgrade was part of a broader effort to enhance scalability, performance, maintainability, and integration capability—particularly in preparation for future digital initiatives that would rely heavily on APIs, microservices, and cloud-native architecture.
◦ Transition from TAFC to TAFJ to support modern development practices and future upgrades.
◦ Improve platform sustainability by reducing dependency on legacy COBOL-based components.
◦ Enhance processing efficiency, particularly during Close of Business (COB) cycles.
◦ Ensure alignment with Temenos’ recommended target architecture for long-term supportability.
◦ Minimize disruption to business operations during the upgrade process.
1. Delayed Access and Team Onboarding
External consultants and vendor resources faced onboarding delays due to restricted access to the bank’s internal systems, network infrastructure, and test environments. This limited the early momentum and required re-sequencing of project tasks.
2. Long Initial Conversion and COB Processing Times
Early conversion cycles and COB simulation runs revealed inefficiencies, particularly due to unoptimized database table structures and legacy data issues. These factors contributed to extended batch processing windows and added pressure to meet project milestones.
To address these technical and organizational hurdles, the bank adopted a pragmatic and collaborative approach with a focus on performance optimization and operational readiness :
◦ Group Database Tables Strategically : The team restructured the database by logically grouping large-volume tables. This significantly improved the performance of conversion scripts and reduced runtime during mock and production conversion cycles.
◦ Automation of Manual Tasks : All repetitive manual tasks, such as data validation checks, routine analysis, and file generation, were automated using custom scripts and utility tools. This not only improved accuracy but also allowed the technical team to focus on exception handling and optimization.
◦ Joint Upgrade Team : A cross-functional upgrade team was formed, comprising internal bank IT staff and Temenos specialists. This ensured effective knowledge transfer, better issue triage, and smoother collaboration across workstreams, especially in later stages like dry runs and Go-Live preparation.
◦ Retrofit Prioritization Framework : Retrofit efforts—needed to adapt customizations from R17 to R21 were prioritized based on critical menu functions, UAT schedules, and frequency of use. This allowed the team to deliver the most impactful updates early, reducing project risk and UAT delays.
◦ Dedicated Database Support Team : A specialized database support team was assigned to monitor and fine-tune performance throughout the conversion and testing phases. Their real-time support helped quickly address indexing issues, table locks, and long-running queries during COB.
◦ Successful Migration to TAFJ : The upgrade to TAFJ was completed successfully, setting the stage for modern Java-based development, API enablement, and easier future upgrades.
◦ Reduced COB Runtime : Optimizations led to a significant reduction in COB processing times, improving overnight batch efficiency and minimizing business impact during system downtime.
◦ Streamlined Conversion Process : Grouping of database tables and the automation of validations improved conversion reliability and reduced the overall turnaround time for each conversion cycle.
◦ Improved Operational Readiness : The joint upgrade team ensured seamless knowledge transition, while the prioritization of key retrofits and testing enabled faster stabilization during post-Go-Live.
◦ Enhanced Platform Sustainability : The upgrade reduced technical debt and positioned the bank to support modern architectures such as containerization, cloud deployment, and API-led integrations.
◦ Optimize Conversion Through Data Grouping : Logical grouping of high-volume database tables can significantly reduce conversion times and processing loads.
◦ Automate Early, Automate Often : Automating routine activities such as validation and reporting not only reduces errors but also frees up team capacity during high-pressure phases.
◦ Collaboration Accelerates Success : Forming a blended team of bank staff and vendor experts leads to better issue resolution and accelerates project momentum, especially during critical cutover stages.
◦ Prioritize Retrofits Based on Impact : Focus retrofit efforts on the most-used menu options and critical business functions aligned with UAT schedules to ensure business continuity.
◦ Establish a Joint Upgrade Team : Ensure close collaboration between vendor and bank teams throughout the lifecycle to manage risks and share ownership.
◦ Dedicate Database Resources : Assign a database performance team to actively support and monitor the upgrade phases, ensuring rapid response to bottlenecks or data issues.
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