Webinar: Workday and KPMG

Banking: Learn How Workday Financials Is the Right

Fit for Financial Institutions in the Face of Change

Housekeeping For Today’s Webinar

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Speakers

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of

independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss

entity.

All rights reserved. NDPPS 668279

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

kpmg.com/socialmedia

Contact:

David Cousineau

Principal, Advisory

T: 702-578-0997

E: [email protected]

Mike Brady

Manager, Advisory, Workday Practice

T: 512-320-5131


Some or all of the services described herein

may not be permissible for KPMG audit

clients and their affiliates.

This presentation may contain forward-looking statements for which there are risks, uncertainties, and

assumptions. If the risks materialize or assumptions prove incorrect, Workday’s business results and

directions could differ materially from results implied by the forward-looking statements. Forward-looking

statements include any statements regarding strategies or plans for future operations; any statements

concerning new features, enhancements or upgrades to our existing applications or plans for future

applications; and any statements of belief. Further information on risks that could affect Workday’s results is

included in our filings with the Securities and Exchange Commission which are available on the Workday

investor relations webpage: www.workday.com/company/investor_relations.php

Workday assumes no obligation for and does not intend to update any forward-looking statements. Any

unreleased services, features, functionality or enhancements referenced in any Workday document,

roadmap, blog, our website, press release or public statement that are not currently available are subject to

change at Workday’s discretion and may not be delivered as planned or at all.

Customers who purchase Workday, Inc. services should make their purchase decisions upon services,

features, and functions that are currently available.

Safe Harbor Statement

http://www.workday.com/company/investor_relations.php

Financial Services Industry Question

Wishful Answer

Some Real Answers

Source: https://www.capgemini.com/resource-file-access/resource/pdf/backing_up_the_digital_front25_11_0.pdf

Globally, banks continue to

rely on core legacy IT systems

originally implemented in the

1970s and 1980s.

Top Challenges for Financial Services

The new normal of running business is facing:

• Unprecedented change

• New market entrants and demands

• Customer demographic shifts

• Disruptive technologies

Exponential Change Is Ahead

“We stand on the brink of a technological revolution that will

fundamentally alter the way we live, work, and relate to one

another. In its scale, scope, and complexity, the transformation

will be unlike anything humankind has experienced before.”

—Klaus Schwab, The Fourth Industrial Revolution

HRManagement

FinancialManagement

Projects AnalyticsPlanning

New Approach

Learning

Technology Designed for the Digital Age

Onearchitecture

Onecommunity

Onesource of truth

Oneexperience

One security model

Oneversion

13© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),

a Swiss entity. All rights reserved.

The Enterprise Cloud for Finance and HR

GLOBAL AT

THE CORE

TECHNOLOGY FOUNDATION

SINGLE CODE LINE

CONSUMER UI

MOBILE COLLABORATION

ACTIONABLE

ANALYTICS

EXPENSES

PAYROLL

RECRUITING

HUMAN

RESOURCESFINANCIALS

TIME TRACKINGINVENTORY

PROJECTS

PROCUREMENT

PLANNING

TALENT

LEARNING

IN-MEMORY

OBJECTS SECURITY

BUSINESS PROCESS FRAMEWORK

INTEGRATION

CLOUD

REPORTING

& ANALYTICS

The Difference?

Journal Entries

CodeBlock

Chart of Accounts

Legacy ERP was built

for accounting…

Workday is built for

business…

• Summarized data

• Low flexibility for change

• More reconciliation needed

• More details & dimensions

• Highly flexible architecture

• Easier reconciliation process

Fund

Project

Region

Product

Supplier

Branch

Channel

Anything

Business

Event

Access to Transactions & Real-Time Data

Real-Time Transaction Data

Fund

Project

Region

Product

Supplier

Branch

Channel

Anything

Business

Event

The Code Block Challenge

DEPARTMENT PRODUCTACCOUNT PROJECTCOMPANY

Finance &Accounting

supplier

group

branch

brand

supervisor

asset

Procurement &Operations

campaign

channel

industry

location

territory

segmentloan

customer

Sales &

Marketing

brand

supplierbranch

territory

department product project

industry

loan

asset

group

supervisor location

channel

segment

campaign

customer

accountcompany

Banking prototype solution overviewDavid Cousineau and Mike Brady

June 6, 2017



Our visionThe purpose of this prototype is to demonstrate how Workday Financials can support key financial

services industry requirements. The banking prototype will act as an accelerator for potential

banking/capital markets customers.

— Develop a financial data model/accounting

structure that allows financial services firms

to efficiently access their data

— Identify additional loan data attributes

required by financial services organizations

— Configure the average daily balance rule such

that average daily balance can be reported on

at the product level

— Identify the elimination rules required to

perform consolidation

— Validate accounting structure through

the generation of managerial and

regulatory reports

— Integrations with front-end systems (e.g.,

trading platform, loan management system,

etc.) were simulated using the Submit Journal

EIB (i.e., Excel spreadsheet load)

LoansConsolidation

Average

daily balance

Reporting

Workday

Our prototype



Key items to considerBanking prototype is the groundwork to

kicking off an effective implementation. It

allows the client to do the following:

… So they can have more bandwidth to

focus on the following:

Start with a prebuilt

financial data model,

business processes, and

industry-specific

configuration

Have recommended

approaches and

configuration already

in place at the start of

the project

Speed up the

implementation

process while still

effecting streamlined,

efficient, and effective

processes

— Identifying unique

requirements to their

business specifically

— Working through

complicated requirements

that need more attention

— Change management

— Training

— Testing



KPMG’s value-addFinancial services system implementation by a financial services firm

Financial services is core to KPMG:

KPMG fundamentally understands the transaction types and intricacies associated with financial services firms as we

have been auditing and advising the industry since our inception

Leveraged this expertise to develop a financial services prototype tenant highlighting the key processes and

complexities financial services firms encounter

Prototype tenant developed via a cross-functional effort between Audit and Advisory SMPs with deep-rooted

knowledge of the financial services industry

Core understanding and efficiencies gained:

Result: A more efficient and accurate implementation fully prepared to address the

challenges of daily operations in the financial services industry

• Less need for knowledge transfer to us - allows for additional focus on system knowledge transfer to client team and design validationImplementation focus

• Identified core lines of revenue and spend common to the financial services industry – design to address the deltaIndustry-specific predesign

• Average daily balance, loan origination/repayment, transfer pricing, fund inception, regulatory reporting etc.

Workday solutions for unique requirements

Banking prototype demonstration



Leverage Workday financials platformWorkday’s unique financials approach:

— Translations

— Eliminations

— Consolidations

— Currency translation adjustment generation

— Revaluation

Expanding upon delivered functionality:

— Automate cash flow reporting

— Automate cash-basis reporting

— Currency translation adjustment



Banking Prototype FDM framework

1) Cost centers and cost center

hierarchies

2) Ledger accounts and ledger account

summaries

Company Cost

center

Ledger

account

Revenue

category

Spend

category

Region Salesitem

Financial

services –

Inv Mgmt

U.K.

Financial

services –

Banking

Residential

mortgages1000 ATM fees

Interest

expense on

deposits

U.S. –

Central

Convertible

bond

Human

resource

operations

2000

Bank charge

and credit

card fees

Wage and

salary

U.K. –

London

Financial

lease

Alternative

investment

group3000

Other

interest

income

Fraud

expensesU.S. –

West

Mutual

funds

Equity and

related

investments

5000

Venture

capital

revenue

Assessment

charges

U.S. –

Northeast

Certificate

of deposits

Financial

services –

Inv Mgmt

Fixed

income

products

4000

U.S.

Treasury –

Interest

income

(Blank)U.S. –

Southeast

U.S.

Treasury –

Security

1) Revenue categories and revenue

category hierarchies

2) Spend categories and spend category

hierarchies



Demonstration #1: Average daily balanceThe average daily balance method is a way of calculating interest by considering the

balance owed or invested at the end of each day of the period rather than the balance owed

or invested at the end of the week, month, or year.

1) Sales items

2) Average daily balance rules

3) Assigning average daily balance to a company

4) Average daily balance reporting

Average

daily balance

calculation

Sum of the

daily balances in

the billing period

Number of days in

the billing period

Annual interest rate

Number of billing

periods per year



Demonstration #2: Loans

1) Custom objects/custom fields

2) Loan reporting

Custom list

— Loan issuer country

— Loan payment status

— Loan lien priority type

— Loan product type

— Loan purpose type

— Loan amortization type

Date

— Loan maturity date

— Loan first installment due

date

— Loan interest-only end date

Free text

— Loan broker nameCurrency/numeric

— Loan origination amount

— Loan actual unpaid

principal balance

— Loan borrower note rate

FY 15



Demonstration #3: Consolidation1) Companies and company hierarchy

2) Elimination rules

3) Configuration details



Demonstration #4: SEC reporting 1) 10-K income

statement

2) 10-K

balance

sheet

= Spend hierarchies

= Spend categories= Ledger accounts

= Revenue hierarchies

= Revenue categories



Demonstration #5: Regulatory reporting (FR Y-9C) 1) FR Y-9C income

statement

2) Balance sheet

3) Schedule HC-B –

Securities

4) Schedule HC-C –

Loan and Lease

Financing

Receivables

5) Schedule HC-D –

Trading Assets

and Liabilities

6) Schedule HC-E –

Deposit Liabilities

7) Schedule HC-F –

Other Assets

8) Schedule HC-G –

Other Liabilities

= Spend hierarchies

= Spend categories

= Ledger accounts

= Revenue hierarchies

= Revenue categories

Workday’s Commitment

to Financial Institutions

OR

Designed for what’s to come.Chained to the past.

Who Is the Right Partner for Change?

Workday Understands Your Needs

Create New

Sources of Growth

Operational Risk

and Control

Prepare for an

Unknown Future

?Regulations

Workday Confidential

• Rapid Growth Through M&A &

launch of new products & channels

• Find and retain the top talent in

multiple locations

• Running a business as a unified

enterprise instead of multi-regional

• Managing data on workers in multiple

locations

• Quickly react to new market

demands

• Make rapid changes to

organizations and business

processes

Workday Pace of Innovation

2006–2013

1

Financial

ManagementHuman Capital

Management

Payroll

U.S.

Expenses &

Procurement

Time

Tracking

Big Data

Analytics

Recruiting Payroll

U.K.

2014

Inventory Payroll

France

Learning

Planning

20162015

Cloud Connect

Benefits

Cloud Connect

3rd Party Payroll

Payroll

Canada

Grants

Management

Student

Recruiting

Projects

Projects

Billing

Student

Admissions

Student

Financial

Performance

Management

Prism

Analytics

Data-as-a-

Service

2017

SINGLE TECHNOLOGY PLATFORM

Analyst Feedback

“Workday’s latest release builds on its commitment to develop a modern cloud- based financial management solution for multinational enterprises in services-based industries.

With many organizations nearing replacement for their legacy financial management applications, Workday’s latest offering provides CFOs with an opportunity to upgrade and modernize their 25- to 30-year-old applications.

More importantly, the global capabilities, industry-specific functionality, and reporting and analytics give services-based organizations hope that a new modern replacement is available.” Source: Constellation Research: RESEARCH REPORT: TRENDS – Workday 26 Beefs Up Cloud Software for Financial

Management, 09 June 2016, R “Ray” Wang.

“By 2018, at least 25% of new core financial application deployments in large enterprises

will be public cloud SaaS.” Source: Gartner (Predicts 2016: Financial Management Applications) November 2015.

“An increasing number of organizations want to move to cloud solutions of a different

vendor or to a different cloud platform of their current vendor.”Source: Gartner, “Survey Analysis: Gartner-FEI Study Helps You Understand the CFO’s Technology

View in 2016,” by John E. Van Decker, Nigel Rayner, Christopher Iervolino, 13 July 2016.

Our Financial Services customers cover every size &

segment of the industry

Financial Services Customers of Workday Financials

Key Differentiators

Adaptive foundation – future proof

Single code base – no internal integrations

World class user experience

Innovation that drives success

Happy customers!

Q&A

Thank youChris Artemenko

Product Strategist,

Financial Services, Workday

T: 1-312- 999-4100


Mike Brady

Manager, Advisory, Workday Practice

T: 512-320-5131


David Cousineau

Principal, Advisory

T: 702-578-0997


mailto:[email protected]



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