Making the Bank Reporting System based on Data Warehouse in BNP Paribas Vostok Bank

A financial conglomerate, a European leader in the world banking and financial services market and one of the six strongest banks in the world according to Standard & Poor’s. Together with Société Générale and Crédit Lyonnais, it makes up the “big three” of the French banking market. Headquarters in Paris, London and Geneva.

Details about the Client

Project Summary

In accordance with the rules of the BNP Paribas Group, most of its banks operating in external markets build their work with the use of the corporate ABS Atlas2. In Russia, the introduction of the ABS operating in accordance with international accounting standards is a difficult task due to the specific Russian requirements for the organization of the bank accounting and reporting.

In BNP Paribas Vostok, after the consulting project executed by Neoflex, it was decided to create an IT-landscape, in which corporate system ABS Atlas2 will be used as an accounting system, while functions related to the Russian specific nature, will be submitted to external modules, and the mandatory reporting for the Central Bank of Russia will be formed by means of a data warehouse.

Building the IT-landscape minimized the work of the bank specialists in localizing ABS Atlas2, brought its work in accordance with the Russian regulators, and created the conditions for the rapid growth of the bank’s business.

Deployed Software

Background

One of the key features of the retail banking is the need to handle large data volumes. When BNP Paribas Vostok faced the need to deploy the corporate ABS Atlas2, a number of issues have been encountered:

  • What should be the bank’s IT-landscape to allow the bank be free to expand the scope of its activities in Russia?
  • Preparation of what reports needs to be implemented in the created IT-landscape, given that the preparation of reports for the Central Bank of the Russian Federation involves the development of a significant number of test reports?
  • How to automate the financial monitoring in accordance with the requirements of the Central Bank of the Russian Federation and the Federal Service for Financial Monitoring (FSFM)?
  • How to implement the functions of the reserve calculation, if the Russian Accounting Standards are not supported by standard Atlas2 system functionality that is built in accordance with international accounting rules?

Solution

One of the key features of the retail banking is the need to handle large data volumes. When BNP Paribas Vostok faced the need to deploy the corporate ABS Atlas2, a number of issues have been encountered:

  • localization module Neoflex Localization Set;
  • general ledger Neoflex GL;
  • data warehouse, which enables the formation of mandatory bank reporting and bank’s internal reporting;
  • financial monitoring module (AML).

Neoflex Localization Set converts data of the Atlas2 system that supports international accounting standards (IAS) into the data corresponding to the requirements of RAS.

General ledger Neoflex GL allows users to monitor the performance of the localization module and correct the results of its work, if necessary. This module forms the revaluation documents, calculates the balances and carries out all the necessary accounting procedures in accordance with the requirements of RAS.

The data warehouse is used to consolidate data to meet the requirements of RAS. Data are transmitted to the data warehouse on a daily basis upon day-end closing in the Atlas2 system. All data changes in Atlas2 are stored in the data warehouse indicating the change date, which allows receiving correct reports for any date in the past.

AML financial monitoring module makes it possible to analyze and generate reports in accordance with the requirements of the Central Bank of the Russian Federation and rules established by the FSFM, namely, 115-FZ and 321-P.

Localization of the Atlas2 system and its integration with the data warehouse was implemented using IBM WebSphere DataStage industrial platform. Data warehouse database is implemented on Oracle DBMS. SAP Business Object is used as a report program generator.

The data quality of the data warehouse enables quality control system, containing more than 150 data checks, implementing interformal control, reconciliation checks and test for convergence of business indicators.

The data warehouse is based on the universal bank data model developed by Neoflex. This is what allows the bank, on the basis of established data warehouse, to build other types of reports in future, such as management, IFRS, tax, internal report and others.

Stages

May
2007
October
2007
November
2007
February
2008
August
2009
January
2010
April
2010

May 2007

The solution architecture is built, as well as the data models for all its components, the interfaces are prepared for uploading data into the warehouse.

October 2007

First reports on the data warehouse were prepared.

Their validity was checked by comparing with the reports received on the real Russian ABS data.

November 2007

The solution was complemented by the AML financial monitoring module.

February 2008

Atlas2 system, Neoflex GL system, AML module and data warehouse was brought into industrial operation.

The solution provided for the formation of 25 reporting forms required for delivery to the Central Bank of the Russian Federation, and more than 20 internal reports.

August 2009

The whole range of mandatory reports previously received by the bank through the Russian ABS was implemented.

Data quality control system, which contains more than 150 check-ups, was created.

January 2010

Changes to legislation were implemented in accordance with the instructions of the Central Bank of the Russian Federation in 2332-U.

April 2010

The Bank uses the 37 mandatory reporting forms, and over 80 test reports.

Efforts are underway to further automate the preparation of public statements and the full automation of the preparation of the form 135. The work is planned to fully automate the calculation of loan reserves according to the requirements of the Central Bank of the Russian Federation 254-P and 283-P.

Outcomes

The IT-landscape created provides for the bank’s work in compliance with the requirements of Russian regulators to conduct banking business. The solution is used by more than 90 experts in more than 10 branches of the bank.

Through the establishment of IT-landscape proposed by Neoflex, the Atlas2 system was brought by the bank into commercial operation in the shortest possible time and with minimal modifications. Throughout the project, the problem of the transformation of the international accounting system (IAS) into the Russian one was solved. The solution supports the calculation of exchange rate differences, revaluation of balances, income and expense account transactions recording, etc., as well as the functions arising from the Russian requirements for conducting financial monitoring.

The data warehouse included in the solution (as of May 2010) provides for preparation of the key mandatory report forms (101, 102, 115, 118, 128, 129, 134, 135, 155, 251, 302, etc.), as well as internal reports preparation (transaction memos, client statements, loan portfolios, inventory sheets and so on). Developed reports cover all the bank’s business lines, such as retail and corporate loans, deposits, cards, interbank credits, factoring, cash and foreign exchange transactions, and others.

The transition to the preparation of reports on warehouse data has increased the accuracy of the reported data, the effectiveness of their formation, and has led to a significant reduction in labor costs for their preparation. The generation time of most reports is a few minutes, as all the data is calculated in advance in a data warehouse.

Interview

Alla Beglyarova
Alla Beglyarova
Chief Accountant at BNP Paribas Vostok

How do you assess the outputs of the project considering the operating experience of the created solution?

The main project objective was to integrate the corporate system Atlas2, which we have reached during one of the first project stages. Today we have solved many problems, including the preparation of the mandatory and internal reporting according to the warehouse data. We highly appreciate the quality of the implemented solution.

How did the transition to reporting based on the warehouse data prove its value?

Report preparation has now become more transparent, and thus more reliable. Moreover, we have achieved required flexibility in preparation of the Bank’s internal reports. When working with the Russian ABS, we have been strictly limited to the standard forms, and today we get the data warehouse reports developed in accordance with the needs of our bank.

Does the bank develop the solution created?

Most of issues which we solve with Neoflex today include improvements to be done in connection with the launch of new bank products. A number of tasks left to automate the calculation of reserves, maintain and extend loans. At the moment, we began to discuss the idea of forming tax reporting according to the warehouse data.

What is your opinion about Neoflex as the project performer?

My department is the main business customer of the project. And, as a customer, I feel happy in cooperation with Neoflex. Throughout the project, there were no disruptions through the fault of the company, the work was based on the principles of mutual understanding, and all agreements have been clearly observed.
Jerom Begorre
Jerom Begorre
IT-Department Director at BNP Paribas Vostok

Why did the bank choose Neoflex?

We have seen Neoflex as a reliable company with both functional and technical expertise, and project management skills. This was confirmed by the positive experience of other units of BNP Paribas, which are the clients of Neoflex.

Why did the bank choose the method of corporate ABS localization proposed by Neoflex?

Corporate ABS Atlas2 incorporated into BNP Paribas Vostok is an effective and flexible accounting tool that has powerful features for the formation of the internal reports accepted by BNP Paribas Group and reports in accordance with IAS standards. The flexible system architecture allows us to make the necessary adaptation to Russian conditions, though some features have been impractical to be configured within the system. That is why we have accepted the Neoflex offer to implement the localization module and create a data warehouse for mandatory reporting generation.

To what extent does the IT-landscape developed by Neoflex meet the bank's requirements?

The solution implemented by Neoflex meets our requirements in terms of stability and performance of its work, as well as the possibility of its further development. It is implemented in full compliance with the group standards.

Does the bank have any plans to develop the solution created?

The solution became a full-fledged part of the bank’s IT-landscape. It will be developed with the development of the bank’s business and the emergence of new regulator’s requirements. Today, we have established good partnership with Neoflex, and started to work in a new direction, namely, in the field of BPM-solution.

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