System Architecture

graphic of the iFRS-VBox IT architecture

iFRS-VBox is implemented directly with the industry standard J2EE technology. The development relies on established open source components. This technology provides you with several advantages:

  • Mature and proven stable technology
  • Platform and database independence
  • Transparent scalability
  • Simple roll-out and maintenance procedure

Software components

The solution consists of three layers, connected through standard interfaces and protocols. For each layer there are several components available.

ETL Tool

This part of the system is responsible for extraction, transformation and loading of data from the bank's core system into iFRS-VBox. The configurations of the ETL Tool are done by the local service provider through a specialized administrative interface. The configurations are saved in simple xml structures which can be easily customized and adapted further if for example the bank introduces new product types after the initial implementation of iFRS-VBox.

Developed specifically for high-performance data ETL, the tool is free of unnecessary overhead. The table below demonstrates the performance of the iFRS-VBox ETL compared to the similar tool of an established international IFRS software vendor. The tests are performed on the same real portfolio of a large bank consisting of about about 1.000.000 loans.

ETL Tool Provider Installation #CPUs RAM Time elapsed
manticore-projects Virtual machine on a PC 4 with 2.4GhZ 8GB 1 min 29 sec
Other International Software Vendor Native installation on a dedicated server 24 with 3GhZ 48GB 124 min 15 sec

The tool is capable to connect to various data formats like Oracle RDMS, IBM DB2, Microsoft SQL Server, MySQL, CSV or flat files. In addition the tool can upload data and settings stored in Excel sheets with pre-defined formats, which is convenient for certain types of data like bank-specific estimates and accounting adjustments which are less frequently updated or do not exist in the bank's core system. For banks actively involved in the global capital markets, iFRS-VBox includes also a native adapter to the Bloomberg Professional Terminal.

Cash Flow, Valuation and Accounting Engine

This part of the system is responsible for the interpretation of the business rules coming form the core banking system. As a first step, iFRS-VBox generation of cash flows for financial instruments. Based on the cash flows generated, iFRS-VBox calculates all necessary measures for IFRS. Finally the system produces the necessary accounting entries. All calculations are performed using modern in-memory computing and are specifically optimized on the business logic applicable to IFRS. Final results are spooled in a database and pre-defined extractions (financial statements and reports) are generated automatically in CSV or Excel format.

The table below demonstrates the performance of iFRS-VBox compared to the similar components of an established international IFRS software vendor. The tests are performed on the same real portfolio of a large bank consisting of about about 1.000.000 loans.

IFRS Tool Provider Installation #CPUs RAM Time elapsed
manticore-projects Virtual machine on a PC 4 with 2.4GhZ 8GB 1h 55 min
Other International Software Vendor Native installation on a dedicated server 24 with 3GhZ 48GB 38 h 45 sec

Database and Storage

iFRS-VBox uses JDBC connections and is independent of a specific database system. Small and mid-sized financial institutions typically receive iFRS-VBox with a free, open-source database management system like PostgreSQL included, installed and fully pre-configured. Larger banks may choose their preferred database management system independently of iFRS-VBox.

iFRS-VBox works on a transparent data model designed from the very beginning to avoid any data redundancies and to read/write in database tables only the information which is necessary. The table below demonstrates the cost advantage of the iFRS-VBox database and storage approach compared to the an established international IFRS software vendor. The tests are performed on the same real portfolio of a mid-sized bank consisting of about about 100.000 financial instruments over a period of one year. The costs are calculated based on the actual offerings of database system and hardware vendors.

IFRS Tool Provider Database used Database cost Storage requirement Storage cost
manticore-projects PostgreSQL 0 0.5TB ~ $500
Other International Software Vendor Oracle Enterprise Edition ~ $60.000 2.5TB Enterprise Class ~ $50.000