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Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
Thomas Liesegang
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Thomas Liesegang

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  • Headings are 12pt Arial bold, sentence case Text without a bullet is 12pt Arial regular, sentence case First level bullets are 12pt Arial regular, and begin with an uppercase letter second level bullets are 11pt Arial regular and begin with a lowercase letter third level bullets are also 11pt Arial regular and begin with a lowercase letter
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    • 1. developing from a utility to a key factor in Deutsche Bank’s financial customer analysis A survey of current projects and recent developments Thomas Liesegang Credit IT – CRM Projektdezernat London, June 29 th 2005
    • 2. Agenda Project: Improve process efficiency using XBRL online data 5 XBRL in Deutsche Bank’s Credit Risk Management 2 Business & technical facts on DB’s financial analysis 3 Manual statement capture in today’s CRM process 4 Recent changes in business process 6 Project: Fully automated process for CRM PBC with XBRL 7 Summary, Conclusion, Outlook 8 Deutsche Bank’s commitment to XBRL 1
    • 3. Deutsche Bank’s commitment to XBRL
          • Activities
            • Member in the German XBRL sub-organisation since 2001 (founder member)
            • Participates in the taxonomy group for German AP (HGB).
          • Motivation
            • Up to now clear focus on XBRL consumer side
            • Facilitate data exchange with customers, data providers and financial institutions
          • Targets
            • Replace today’s very heterogeneous landscape of data formats by a global common standard
            • Support XBRL in order to use potential for streamlining and enhancing financial analysis of customer data
            • Shift focus from input to analysis tasks
            • Allow for a a paperless process in future
    • 4. Credit Risk Management (CRM)
          • Exercises an independent credit approval and monitoring function for the whole of Deutsche Bank
          • operates today with appr. 3000 employees in 20 countries in all the main regions worldwide
          • Uses up-to-date methodology qualifying Deutsche Bank to the Advanced Internal Ratings based approach under Basel II
          • Is first and ideal application field for XBRL in Deutsche Bank; XBRL offers potential for further process optimisation because of
            • Volume: CRM needs to analyse appr. 100,000 financial statements of customers for credit decisions each year.
            • Approach: CRM employs a global IT landscape with state-of the art technology using common standards.
    • 5. CRM financial analysis – basis & instruments
          • Analytical basis: CRM uses Deutsche Bank accounting model as proprietary scheme
            • consisting of appr. 180 input positions
            • allowing for uniform representation of financial statements of all international accounting standards (US-GAAP, IAS, HGB etc.)
            • Defining the bank’s risk view and using common ratio definitions in order to assure comparable analyses on a common basis.
          • New instruments integrated in process:
            • Extended single customer analysis (cash flows statement, comprehensive ratio sheet)
            • Financial rating models tailored to DB’s portfolio
            • Multi-customer analysis (peer groups, industry comparison)
          • Result: increased quality and significance
    • 6. CRM financial analysis - technical platform BARS
          • IT consolidation: 14 heterogeneous and non standardised spreading tools merged from 2001 to 2003 in one application
          • Today CRM’s uniform system BARS (“Balance Sheet Analysis and Rating System”)
            • Optimally supports CRM analysis and process
            • Is available worldwide and allows for global access
            • supports online Import of Belgian Bureau van Dijk data in BEL-FIRST format.
          • XBRL and BARS are a perfect match
            • Uniform worldwide standard ↔ global DB tool
            • Homogeneous interface structure will allow for higher flexibility in information retrieval and IT cost containment
            • BARS uses XML technology
    • 7. Extended scope of financial analysis since 2002 Multi Customer Analysis automatic calculation on demand Customer / Industry Comparison Peer Group Analysis Industry Comparison over time Comments, KWG 18 Financial Rating Income Statement (TC or CoGS) Cash Flow Statement Extended Ratio Sheet Balance Sheet Extended uniform financial analysis in global BARS application (since 2002) Income Statement Financial Summary / Basic Ratios Balance Sheet Standard financial analysis in 14 different DB systems (until 2001) Single Customer Analysis system generated reports DB Accounting Scheme ≈ 180 input positions
    • 8. Extended scope of financial analysis since 2002 Multi Customer Analysis automatic calculation on demand Income Statement Financial Summary / Basic Ratios Balance Sheet Standard financial analysis in 14 different DB systems (until 2001) Customer / Industry Comparison Peer Group Analysis Industry Comparison over time Comments, KWG 18 Financial Rating Income Statement (TC or CoGS) Cash Flow Statement Extended Ratio Sheet Balance Sheet Extended uniform financial analysis in global BARS application (since 2002) Single Customer Analysis system generated reports Focus on: Data Entry (-> Efficency) Analysis (-> Quality) DB Accounting Scheme ≈ 180 input positions
    • 9. Status quo of financial analysis
          • Quality: Optimum decision support by financial reports automatically generated by BARS
          • Efficiency:
            • Except for Belgium manual data capture still indispensable and requires DB-analysts to
              • map the customer financials from the official accounting standard onto Deutsche Bank’s proprietary scheme
              • enter balance sheet and income statement figures in BARS.
            • Manual spreading takes from 20 to 40 minutes
            • Remains most time-consuming entry activity in a highly optimised CRM process.
            • Improvement by further automation difficult without common standard as
              • Electronic financial data is difficult to acquire
              • Due to individual structure additional interfaces create significant increase in IT costs without XBRL
    • 10. Manual statement capture in CRM’s automated process Account information Customer Data Rating/Scoring Methodology Credit Reporting System Financial Analysis System (BARS) Workflow Management System CRM IT process CRM Analyst Prepare and make financial analysis Financial statement Step2: Data Capture in BARS system Step1: Mapping on Deutsche Bank Scheme - Set up credit report - Take credit decision
    • 11. XBRL project 1: Improve process efficiency ….
          • Starting situation in CRM: 50% of all customer statements are in German AP (HGB)
          • Objective: Shift focus from capture to analysis
          • Means: Allow for online processing of financial data in common standard XBRL
          • To do: Integrate XBRL taxonomy mapping tool
          • Open points / uncertainties:
            • Availability of data: Are there enough producers of XBRL instant documents in Germany?
            • Business case: What’s the exact time saving? Part of the analysis done during data capture!
          • Strategy: Pilot with German AP, expansion to other taxonomies later ( -> reusability)
          • Dependencies: adoption of German AP 2 taxonomy by XBRL Germany e.V. (planned for September 2005)
    • 12. … by processing XBRL documents online with BARS Taxonmy Mapping Financial Analysis System (BARS) CRM Analyst Financial statement Step2: Data capture in BARS system Step1: Mapping on Deutsche Bank Scheme Traditional approach: manual mapping and data entry XBRL instance document BARS Import Dialogue Additional access path: Online XBRL data import
    • 13. Behind the scenes 400 T EUR 150 T EUR 550 T EUR German AP Taxonomy (HGB) Deutsche Bank Accounting Model
          • Online conversion from official taxonomy into Deutsche Bank accounting model representation (private taxonomy)
          • Requirement: Business mapping for each relevant taxonomy
          • Advantage: No dependency on providers
    • 14. The CRM world changes …
          • Developments and trends in the last two years:
          • Reorganisation: Due to cost pressure some commercial banks have transferred financial statement capture to external service providers.
          • Improvements in methodology:
            • Analysis is more and more determined by statistical risk instruments ( -> rating, portfolio analysis)
            • Financial statement analysis also becomes an indispensable part for CRM segments in charge of small & medium size companies.
            • State of the art methodology requires more financial data than ever before to be analysed without increase in processing time and costs.
          • The XBRL focus turns from a utility for streamlining and efficiency to a must factor for setting up new high quality processes.
    • 15. State-of-the-art analysis requires more financial data in future
          • New user of financial analysis in lean version
          • Rating as key component
          • Extended need for financial data of small & medium sized companies
      Private & Business Clients (PBC) Germany, Spain, Italy,Belgium, Poland MidCap Europe Multi- Nationals (ICC) Increasing number of customers diversity of accounting standards
          • Traditional use of explicit financial statement analysis
          • Increasing importance of multi customer analysis creates need for more financial statement data of multinationals and MidCap companies
    • 16. XBRL project 2: Fully automated process for CRM PBC
          • Objective: Create online interface to Informa financial statement data stock in Spain
          • Project scope:
            • Direct import, mapping and rating of financial customer data identified by Spanish fiscal ID
            • Workflow support by email notification on arrival of new statements
            • Electronic archive: Financial data in original format stored and available online in Deutsche Bank systems
          • BARS becomes multi channel access system allowing for
            • Manual data capture
            • Online import of XBRL data
            • Information retrieval in external databases
          • Dependencies: If XBRL taxonomy for Spanish commercial law not available mid of 2006, XML will be used as intermediary solution!
    • 17. BARS as multi channel access system using XBRL Financial Analysis System (BARS) CRM Analyst Financial statement Step2: Data capture in BARS system Step1: Mapping on Deutsche Bank Scheme XBRL instance document Import XBRL document in BARS online BARS Taxonmy Mapper Analysed data Data request XBRL data Data provider e.g. Informa, Datev Data request XBRL Instance documents XBRL data XBRL document
    • 18. Summary, Conclusion, Outlook (1)
          • XBRL is the missing element for streamlining resp. adopting high quality financial analysis in CRM.
          • The time is overripe for the new standard. If not implemented in short term business development will continue with different and less uniform solutions!
          • Public perception of XBRL increased in the last two years, but many companies remain observant for a final proof of concept (missing propensity to invest).
          • At the end of 2006 Deutsche Bank’s will be able to implement XBRL data import for CRM financial analysis worldwide assumed that appropriate taxonomies and instance documents exist.
    • 19. Summary, Conclusion, Outlook (2)
          • Successful XBRL implementation is dependent on
            • Stable taxonomies and specifications
              • Specification 2.1 is a milestone
              • However, some European taxonomies are still missing or currently being revised.
            • Sufficient amount of XBRL data
              • XBRL as standard does not automatically generate new data sources.
              • At the beginning offer of financial data will remain different in EU countries (e.g. Belgium, Spain ↔ Germany).
              • Electronic data exchange is almost never a technical, but sometimes a legal or even psychological problem.
          • Deutsche Bank will further try to establish XBRL in the German financial sector and to surmount existing reserves and difficulties. XBRL will not succeed without enough participants!
    • 20.
          • Please contact:
            • Deutsche Bank AG Thomas Liesegang Credit IT - CRM Projektdezernat
            • Taunusanlage 12 D-60325 Frankfurt
            • Phone: +49 (0)69 910-35363 Mail: thomas.liesegang@db.com
      Your feedback and questions are always welcome
    • 21. very much for your attention!

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