If you’re going to talk about Data Preparation and Core Banking systems, the HOGAN core banking system is a good one to start with. Check out this quote by Martin Whybrow, a Subject matter expert in Core Banking.

“No matter how much they’d like to, tier one and two banks are pretty much stuck with their core legacy architectures. The fact that 50% of the US population has an account supported on the IBM mainframe-based HOGAN system pretty much sums it up”. - Martin Whybrow

Other Fun facts about HOGAN:

• 6 of Top 10 Banks in the US use HOGAN

• 250 Million Deposit Accounts on HOGAN

• $5 Trillion in US Account Balances Processed Annually

About HOGAN

The HOGAN core banking system is currently owned by DXC Technology , a Fortune 500 company, that is a global consulting and IT service provider. More specifically, Luxoft, a subsidiary of DXC focuses on running HOGAN Core Banking services and other applications and services. But what’s the history of HOGAN?

Brief History

In 1977, The HOGAN System was originally created by a company called HOGAN Systems Inc, which was founded in Dallas Texas, . I’m not sure who the first customer was, but they probably have merged into a larger bank or were acquired by a larger bank.

A few years earlier in 1962, another company called EDS (Electronic Data Systems) was founded in Plano Texas. Some of EDS’s early customers were Medicaid and Medicare, and Insurance companies, and eventually banks and credit unions.

In 1996 the Continuum Company acquired HOGAN Systems, and in that same year Continuum Company was subsequently acquired by CSC (Computer Science Corporation).

In 2008 Hewlett-Packard Acquired EDS for $13.9 Billion, and the business unit was created and name HPE Enterprise, and in 2017 HPE Enterprise and CSC merged to create DXC Technology.

Data Preparation & HOGAN

HOGAN, like all core banking systems is composed of ‘modules’ to help manage data in a financial institution. For example, you have the IDS - Integrated Deposit System for Deposit accounts and the ILS - Integrated Loan System for Loan accounts.

Within these core banking system there are Hundreds of Standard Reports, and Customized Reports tailored to the needs for the financial institution. For example the “DR0001 - Transaction Posting Journal” is a standard report of detail activity that occurred in all deposit accounts. Custom developed reports tend to start with ‘X’ or ‘Z’.

These reports are trusted sources of data as they are generated straight from the core system with no human intervention. They are relied upon for business operations, financial operations, audit, and much more.

Use Case - Right of Offset

I once did some work with a HOGAN banking customer that was preparing for an audit related to Collections Practices and Right of Offset. In short, a Financial Institution has the right to offset a borrowers delinquent loan account by transferring funds from a deposit account, however there are strictly rules around this practice. To prepare for the audit the Financial Institution needed to identify all transactions where the Collections team performed such activity for an 18 month time frame.

This activity could only be found on a General Ledger Transaction Journal report, which was the ODS001 report. By leveraging Data Preparation software, Monarch from Altair, we were able to identity and capture all the required activity to help prepare for the audit.

To reiterate; There was no other source for this information. No Spreadsheet, No database, No data warehouse tables, nada.  Only the source report had the required information. In addition, Auditors want to see such reports and tend to trust them more than databases.