Date post: | 22-Jan-2015 |
Category: |
Education |
Upload: | oracle-hrvatska |
View: | 625 times |
Download: | 1 times |
BANKS PROFITABILITY MANAGEMENTBANKS PROFITABILITY MANAGEMENTOFSAA
MARIO MRLJIĆ NEOS 15.4.2010
AGENDAAGENDA
• INTRODUCTION
• BANK PROFITABILITY
• OFSAA
• IMPLEMENTATION• IMPLEMENTATION
• Q&A
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 2
NEOSNEOS
• FOUNDED 2002.
• LONG TERM EXPIRIENCE ON PROJECTS WITH MID-SIZED AND LARGE CUSTOMERS
• ORACLE CERTIFIED PARTNER
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 3
• ORACLE CERTIFIED PARTNER
• LOCAL PARTNERS – S&T
• CERTIFIED CONSULTANTS
APPLICATION DEVELOPMENTBUSINESS INTELLIGENCE
(BI i DW)
CONSULTANCY SERVICES
CUSTOMERS/EXPIRIENCECUSTOMERS/EXPIRIENCE
• AZFOND (OBVEZNI I DOBROVOLJNI FONDOVI)
• ALLIANZ TYRIAK (MIROVINSKI FOND RUMUNJSKA)
• COCA COLA BEVERAGES HRVATSKA D.O.O.
• CROATIA OSIGURANJE D.D.
• FIMA VRIJEDNOSNICE D.O.O.
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 4
• HEP
• HNZ
• HYPO LEASING
• HZZO
• IGH
• MAKEDONSKI TELEKOM
• PBZ D.D.
• SITRONICS TELECOM SOLUTIONS (PRAGUE)
• TEKSTILPROMET D.D.
• VABA BANKA D.D.
• ZABA D.D
BANK PROFITABILITYBANK PROFITABILITY
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 5
BANK PROFITABILITY BANK PROFITABILITY -- HRHR
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 6
BANK PROFITABILITY BANK PROFITABILITY -- HRHR
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 7
BANK PROFITABILITYBANK PROFITABILITY
• DRIVERS
– DELIVER ACTIONABLE CUSTOMER, BUSINESS LINE, AND PRODUCT PROFITABILITY INSIGHT
– HAVE MORE GRANULAR AND DETAIL INSIGHT IN KEY PROFITABLITY COMPONENTSCOMPONENTS
– INCORPORATE RISK INTO DECISION MAKING
– ABILITY TO ACT ON TIME
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 8
ORACLE FINANCIAL SERVICES ANALYTICAL ORACLE FINANCIAL SERVICES ANALYTICAL ORACLE FINANCIAL SERVICES ANALYTICAL ORACLE FINANCIAL SERVICES ANALYTICAL APPLICATIONSAPPLICATIONS
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 9
GOAL ENVIRONMENTGOAL ENVIRONMENT
AccountingFinancial
Consolidation Legal & RegulatoryReporting
INPUTS FINANCIAL PERFORMANCE RISK OUTPUTS
AccountingControl
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 10
Customers
Core TransactionalSystems
GeneralLedger Operational
Reporting
ManagementReporting
Asset LiabilityManagement
Funds TransferPricing
Profitability
Costing
Planning
StrategyBalance Sheet
Planning
DataWarehouse(s)
Ad HocMarts
OFSAOFSA
• ORACLE FINANCIAL SERVICES ANALYTICAL APPLICATIONS
– Oracle Financial Services Profitability Management
– Oracle Financial Services Profitability Analytics
– Oracle Financial Services Funds Transfer Pricing – Oracle Financial Services Funds Transfer Pricing
– Oracle Financial Services Pricing Management, Transfer Pricing Component
– Oracle Financial Services Asset Liability Management
– Oracle Financial Services Asset Liability Management Analytics
– Oracle Financial Services Balance Sheet Planning
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 11
OFSA OFSA -- ARHITECTUREARHITECTURE
• ORACLE FINANCIAL SERVICES ANALYTICAL APPLICATIONS
FINANCIAL SERVICES BUSINESS INTELLIGENCE
Reports Alerts Dashboards Embedded
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 12
Un
ifie
d A
na
lyti
cal M
eta
da
ta
FINANCIAL SERVICES ANALYTIC APPLICATIONS DATA MODEL
FINANCIAL SERVICES ANALYTIC APPLICATIONS INFRASTRUCTURE
Reports Alerts Dashboards Embedded
Purpose Built Engines Common Tools Business Rules Stochastic Modeling
Common Objects Common DimensionsPre-Integrated/
ExtensibleHigh Volume
UNIFIED DATA MODELUNIFIED DATA MODEL
Inputs Processing Outputs
Common Staging Area App-specific processing App-specific result tables
Facts Dimensions
Product Processors
COA
Product
ALM
FTP
PFT
MR
CR
OR
aCRM
Basel II
ALM MR
CR
OR
aCRM
Basel II
GRC
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 13
Shared ProcessingTables
Common Metadata
Transactions
Ledger
Product
Org
Customer
Exposures
Time Series Data (Rates, Indicators, risk factors etc)
Display Codes/Master tables
Master Data
PFT OR
Instruments (27)
LedgerStat Account
Summary Tables
Common Dimensions, Hierarchies, Master Tables
COA
Product
Org
Customer
OR
Campaigns
Time Series Data (Rates, Indicators, risk factors
etc)
GRC
ExposuresT2T
Shared output tables
INFRASTRUCTUREINFRASTRUCTURE
BUSINESS RULES RESULTS DATA MODEL ETL
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 14
SYSTEM
ADMINISTRATION
SECURITY
SHARED
COMPONENTS
FOUNDATION
HARDWARE
ANALYTICSANALYTICS
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 15
FUND TRANSFER PRICINGFUND TRANSFER PRICING
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 16
FUND TRANSFER PRICINGFUND TRANSFER PRICING
Funding Center
responsible for
• Margin = Credit for Funds less
Charge for Funds
• FTP & NII Forecasts
• Rate Risk Management
Organization Structure
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 17
Deposit Gathering Lending Operations
• Rate Risk Management
Interest Rate
Less Charge for Funds
Transfer Rate
less Credit for Funds
Net MarginNet Margin
OFSA OFSA -- FTPFTP
•• MultiMulti--currency User Interfacecurrency User Interface
•• TP Method EnhancementsTP Method Enhancements
•• TP AddTP Add--on Rateson Rates
•• Integration of RealIntegration of Real--time time PricingPricing
•• TP Methods Available for ALM TP Methods Available for ALM
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 18
•• TP Methods Available for ALM TP Methods Available for ALM ForecastingForecasting
•• TP Methods Available for BSP TP Methods Available for BSP ForecastingForecasting
PROFITABILITY MANAGERPROFITABILITY MANAGER
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 19
PROFITABILITY CALCULATIONPROFITABILITY CALCULATION
NET INTEREST INCOME
FTP
PLUS
NON INTEREST INCOME
ALL PRODUCTS
FEES & SERVICE CHARGES
Asset: interest income less the cost of funds
Liabilities: benefit of fund less interest expense
This would include all the fees, service charges
and commission income that can be attributed to
an account
ACCOUNT LEVEL (MILLIONS OF RECORDS)
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 20
MINUS
NON INTEREST EXPENSE
MINUS
EXPECTED LOSS
DIVIDE
ALLOCATED CAPITAL CHARGE
RAPM
RAROC – SVA
DIRECT EXPENSES
OPERATIONAL EXPENSES
ACCOUNT LOAN GRADE
EXPOSURE AMOUNT
ALLOCATED RISK CAPITAL
Sales & service cost allocated either using top
down methodology or activity based costing
Based on the quality of the obligator,
The probability of default and exposure at
default.
Capital charge calculated based on credit,
market and operational risk factors
+ OR - $’S PER ACCOUNT
MULTIDIMENSIONALITYMULTIDIMENSIONALITY
Account
CustomerProduct
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 21
Account
OfficerBranch
Total
Bank
Business
Units
PROFITABILITY MANAGERPROFITABILITY MANAGER
•• Improved Improved AuditabilityAuditability
–– Visual trace of allocation historyVisual trace of allocation history
–– Allocation interdependency and Allocation interdependency and ability to discriminate debits & ability to discriminate debits & credits in resultscredits in results
•• Model StructuringModel Structuring
–– Standardized model and seeded Standardized model and seeded
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 22
–– Standardized model and seeded Standardized model and seeded rules for account level rules for account level profitabilityprofitability
•• Performance & ScalabilityPerformance & Scalability
–– Capable of highest transaction Capable of highest transaction throughput of tier one banksthroughput of tier one banks
•• Account Level ProfitabilityAccount Level Profitability
–– Built for lowest level account, Built for lowest level account, transaction and customer level transaction and customer level profitabilityprofitability
–– Works with Hyperion Profitability Works with Hyperion Profitability & Cost Management for top& Cost Management for top--down and bottomdown and bottom--up profitabilityup profitability
ALLOCATION RULESALLOCATION RULES
• INCOME/COST ALLOCATION RULES
• DRIVERS? (SQM, FTE, PERCENTAGES, OTHER?)
• FLEXIBILITY
• EASY MAINTENTANCE AND MODIFICATIONS• EASY MAINTENTANCE AND MODIFICATIONS
• TRACEABILITY
• BASED ON BUSINESS DECISIONS
15. travanj 2010 OFSA – BANK PROFITABLITY 23
PROFITABILITY BI ANALYTICSPROFITABILITY BI ANALYTICS
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 24
OFSPAOFSPA
• TECHNOLOGY
– ORACLE BI EE PLATFORM
– ESSBASE CUBES
• PRINCIPLES• PRINCIPLES
– PERFORMANCE
– FLEXIBILITY
– STRUCTURED APROACH
• DASHBOARDS
– Account Level Profitability Dashboard
– Financial Accounting Dashboard
– Managerial Accounting Dashboard
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 25
DASHBOARDSDASHBOARDS
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 26
IMPLEMENTATIONIMPLEMENTATION
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 27
PROJECTPROJECT
• BUSINESS REQUIREMENTS DEFINITION (BU FOCUS)
– FTP METHODOLOGIES
– PROFIT/COST ALLOCATIONS
– REPORTING REQUIREMENTS– REPORTING REQUIREMENTS
– CUSTOMER HAS DW?
• SOLUTION DESIGN
– MODIFICATIONS & IMPLEMENTATION
– LOAD & TESTING
• PRODUCTION
– USE RESULTS IN DECISION MAKING PROCESS
• CONTINOUTS MAINTENANCE AND IMPROVEMENTS
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 28
IMPLEMENTATION STEPSIMPLEMENTATION STEPS
� Technical Architecture
for Profitability Solution
�Design Profitability
�Review and document
user requirements,
technical environment,
� Establish system
tables and table
columns and build
� Transitioning all
system processes to
a production
PreparationPreparationDesign Design
PhasePhase
Definition Definition
and and AnalysisAnalysis
Transition Transition
to to ProductionProduction
�Project Preparation
� Establish Initial Work
Plan
Solution Solution
Development Development (Build) Phase(Build) Phase
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 29
�Design Profitability
Business Rules
� Technical Architecture
for Budgeting and
Planning Solution
�Design Budgeting and
Planning Business
Rules
� …
Data requirements
and sources
�Define Template:
?Reporting Requirements
?TP Methodologies
and Yield Curves
?Unit Cost
Calculation
?…
and review reports
� Set up users, groups
and security access
rights and define and
create hierarchies
�Develop
Functionalities and
User Interfaces
where defined
� …
environment.
� The data conversion
programs will be
finalized
�Training and hand-
over to RI Staff
Plan
� Establish Staffing &
Organization Plan
� Establish Project
Scope, Objective &
Approach
� Kick-off preparation
� Kick-off and
Mobilization
� …
Project W
ork
•Solution Design Document
•MIS Solution GOING LIVE
•MIS Solution for Test
•Business Requirements
Document
•Kick Off Event
•Basic Information
prepared
Project Result
KEY POINTSKEY POINTS
• RISKS
– DATA UNAVAILABILITY
– DATA QUALITY
– RESOURCE UNAVAILABILITY– RESOURCE UNAVAILABILITY
– LOW EFFICIENCY IN DECISION MAKING
• IMPORTANT
– CLEAR STRATEGY ON FUTURE SYSTEM USAGE
– BUSINESS USERS COMMITMENT
– STRONG MANAGEMENT SUPPORT
– BALANCE BETWEEN SIMPLICITY – COMPLEXITY IN CONTRAST TO END VALUE
15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 30
W W W . N E O S . H RW W W . N E O S . H R