The development strategy of the
To implement the bank’s strategic objectives, it was required to create a new system of management reporting that meets the requirements of the active growth of the business.
Since early 2009, the formation of the administrative reporting in the
As a result of the project, the management of the
With business growth and development of the branch network, the flow of data required to generate management reports has increased. In this regard, the old reporting methods ceased to satisfy the needs of the bank: reports at the request of the bank’s management were preparing for a long time, the contractors often asked questions about the reliability of data because of errors. All this made it difficult to conduct an objective analysis of the bank’s activities as a whole and its divisions, and prevented the effective business management.
The bank’s management has decided to establish a management reporting system on the industrial platform. The system was assigned with the following tasks:
- collecting the information needed for the generation of accounting, in a single center;
- rapid generation of the management reports;
- providing analysis of the bank’s activities in the context of branches, business units, financial accounting centers, activities, products, etc. with specification to the given customers, accounts, transactions.
At the same time, it was planned that the management reporting system should be the technological basis for the creation of systems of formation of other types of accounts — mandatory, tax, IFRS ones, etc.
Neoflex recommended establishing a management reporting system on the basis of a universal data warehouse. The data warehouse was tasked to consolidate information on the bank’s activities, coming from the source systems of the head office and branches, as well as providing data for reporting.
The main system functionality provide for ready units, which consolidate Neoflex project experience in the development of reporting systems as follows:
- data warehouse model that allows to describe the business model of a universal bank;
- data load unit used to extract data from the source systems, and deliver and load it into the data warehouse;
- data quality control unit and data enrichment unit, responsible for the quality and completeness of the data warehouse;
- application datamarts, which consolidate structured information for specific reports;
- ready report templates.
The technological basis of the system were the SAP NetWeaver platform components: «Business Information Warehouse» (SAP BW), «Business Intelligence» (SAP BI), «Business Planning and Simulation» (SAP
Course of the project
First of all, the bank’s management needed current and reliable information about the activities of the bank as a whole, therefore, the construction of the management reporting system was initiated «from the top» — from the formation of the complex of the bank reports. For this purpose, data on transactions, accounts, customers, balances, transactions on all structural business units of the bank has been downloaded.
In the next stage of the project, the work was carried out to create detailed reports on specific areas of activity, including those cuts, which the bank had not previously had.
Since February 2009, the administrative reporting generation system in the
The system provides for:
- report generation, used for a comprehensive analysis of the bank’s activities: balance sheet statement, profit and loss statement, assets and liabilities efficiency report;
- report generation, needed to analyze specific activities of the bank: loans, deposits, cash management services, credit cards, interbank loans and currency dealing, economic operations.
As a result of the system establishment, the bank has received significant benefits:
- an opportunity to carry out centralized analysis of the financial performance of the bank in the context of branches, business units, centers of financial accounting, product, and business lines with subsequent detailing of the data to specific customers, accounts, transactions and accounting entries;
- the speed of preparation of management reports has increased. The reports are generated according to the data of a single source — the data warehouse;
- reliability of the data, reflecting the bank’s performance, has increased;
- business users are now able to independently carry out all the necessary analyzes. The reports are generated according to the methodology implemented on the data warehouse model level, which fully takes into account the specifics of the bank;
- the bank has received the ability to quickly incorporate new branches in its information space.
Currently, the established system is complemented by a mechanism of allocation of income and expenses. On the basis of a universal data warehouse, developed in the course of the project, the work began on creation of a system for the generation of mandatory reporting of the Central Bank of the Russian Federation. In future, the bank is planning, based on established decision, to build a reporting generation system according to IFRS.
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