Neos ofsa - info age.

991 views

Published on

Published in: Education
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
991
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
48
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Neos ofsa - info age.

  1. 1. BANKS PROFITABILITY MANAGEMENT OFSAA MARIO MRLJIĆ NEOS 15.4.2010
  2. 2. AGENDA • INTRODUCTION • BANK PROFITABILITY • OFSAA • IMPLEMENTATION • Q&A 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 2
  3. 3. NEOS • FOUNDED 2002. • LONG TERM EXPIRIENCE ON PROJECTS WITH MID-SIZED AND LARGE CUSTOMERS • ORACLE CERTIFIED PARTNER • LOCAL PARTNERS – S&T • CERTIFIED CONSULTANTS CONSULTANCY SERVICES BUSINESS INTELLIGENCE APPLICATION DEVELOPMENT (BI i DW) 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 3
  4. 4. CUSTOMERS/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. • 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 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 4
  5. 5. BANK PROFITABILITY 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 5
  6. 6. BANK PROFITABILITY - HR 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 6
  7. 7. BANK PROFITABILITY - HR 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 7
  8. 8. BANK PROFITABILITY • DRIVERS – DELIVER ACTIONABLE CUSTOMER, BUSINESS LINE, AND PRODUCT PROFITABILITY INSIGHT – HAVE MORE GRANULAR AND DETAIL INSIGHT IN KEY PROFITABLITY COMPONENTS – INCORPORATE RISK INTO DECISION MAKING – ABILITY TO ACT ON TIME 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 8
  9. 9. ORACLE FINANCIAL SERVICES ANALYTICAL APPLICATIONS 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 9
  10. 10. GOAL ENVIRONMENT INPUTS FINANCIAL PERFORMANCE RISK OUTPUTS Accounting Financial Accounting Control Consolidation Legal & Regulatory Reporting General Ledger Strategy Operational Balance Sheet Reporting Planning Core Transactional Planning Systems Management Data Reporting Warehouse(s) Profitability Funds Transfer Pricing Asset Liability Management Ad Hoc Customers Costing Marts 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 10
  11. 11. OFSA • ORACLE FINANCIAL SERVICES ANALYTICAL APPLICATIONS – Oracle Financial Services Profitability Management – Oracle Financial Services Profitability Analytics – 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
  12. 12. OFSA - ARHITECTURE • ORACLE FINANCIAL SERVICES ANALYTICAL APPLICATIONS FINANCIAL SERVICES BUSINESS INTELLIGENCE Reports Alerts Dashboards Embedded Unified Analytical Metadata FINANCIAL SERVICES ANALYTIC APPLICATIONS INFRASTRUCTURE Purpose Built Engines Common Tools Business Rules Stochastic Modeling FINANCIAL SERVICES ANALYTIC APPLICATIONS DATA MODEL Pre-Integrated/ Common Objects Common Dimensions High Volume Extensible 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 12
  13. 13. UNIFIED DATA MODEL Inputs Processing Outputs Common Staging Area App-specific processing App-specific result tables ALM MR aCRM ALM MR aCRM Facts Dimensions Product COA FTP CR Basel II CR Basel II Processors Product PFT OR GRC OR Transactions Org Shared ProcessingTables Shared output tables Ledger T2T Customer LedgerStat Exposures Account Exposures Summary Tables Instruments (27) Campaigns Common Dimensions, Hierarchies, Master Tables Master Data COA Org Time Series Data (Rates, Time Series Data (Rates, Indicators, risk factors Indicators, risk factors etc) Product Customer etc) Display Codes/Master tables Common Metadata 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 13
  14. 14. INFRASTRUCTURE BUSINESS RULES RESULTS DATA MODEL ETL SECURITY SYSTEM FOUNDATION ADMINISTRATION SHARED COMPONENTS HARDWARE 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 14
  15. 15. ANALYTICS 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 15
  16. 16. FUND TRANSFER PRICING 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 16
  17. 17. FUND TRANSFER PRICING Organization Structure • Margin = Credit for Funds less Funding Center Charge for Funds responsible for • FTP & NII Forecasts • Rate Risk Management Deposit Gathering Lending Operations Transfer Rate Interest Rate less Credit for Funds Less Charge for Funds Net Margin Net Margin 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 17
  18. 18. OFSA - FTP • Multi-currency User Interface Multi- • TP Method Enhancements • TP Add-on Rates Add- • Integration of Real-time Real- Pricing • TP Methods Available for ALM Forecasting • TP Methods Available for BSP Forecasting 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 18
  19. 19. PROFITABILITY MANAGER 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 19
  20. 20. PROFITABILITY CALCULATION ACCOUNT LEVEL (MILLIONS OF RECORDS) NET INTEREST INCOME Asset: interest income less the cost of funds ALL PRODUCTS FTP Liabilities: benefit of fund less interest expense PLUS This would include all the fees, service charges FEES & SERVICE CHARGES and commission income that can be attributed to NON INTEREST INCOME an account DIRECT EXPENSES MINUS Sales & service cost allocated either using top OPERATIONAL EXPENSES NON INTEREST EXPENSE down methodology or activity based costing ACCOUNT LOAN GRADE MINUS Based on the quality of the obligator, The probability of default and exposure at EXPOSURE AMOUNT EXPECTED LOSS default. DIVIDE ALLOCATED RISK CAPITAL Capital charge calculated based on credit, ALLOCATED CAPITAL CHARGE market and operational risk factors + OR - $’S PER ACCOUNT RAPM RAROC – SVA 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 20
  21. 21. MULTIDIMENSIONALITY Account Product Customer Account Branch Officer Business Total Units Bank 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 21
  22. 22. PROFITABILITY MANAGER • Improved Auditability – Visual trace of allocation history – Allocation interdependency and ability to discriminate debits & credits in results • Model Structuring – Standardized model and seeded rules for account level profitability • Performance & Scalability – Capable of highest transaction throughput of tier one banks • Account Level Profitability – Built for lowest level account, transaction and customer level profitability – Works with Hyperion Profitability & Cost Management for top-top- down and bottom-up profitability bottom- 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 22
  23. 23. ALLOCATION RULES • INCOME/COST ALLOCATION RULES • DRIVERS? (SQM, FTE, PERCENTAGES, OTHER?) • FLEXIBILITY • EASY MAINTENTANCE AND MODIFICATIONS • TRACEABILITY • BASED ON BUSINESS DECISIONS 15. travanj 2010 OFSA – BANK PROFITABLITY 23
  24. 24. PROFITABILITY BI ANALYTICS 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 24
  25. 25. OFSPA • TECHNOLOGY – ORACLE BI EE PLATFORM – ESSBASE CUBES • PRINCIPLES – PERFORMANCE – FLEXIBILITY – STRUCTURED APROACH • DASHBOARDS – Account Level Profitability Dashboard – Financial Accounting Dashboard – Managerial Accounting Dashboard 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 25
  26. 26. DASHBOARDS 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 26
  27. 27. IMPLEMENTATION 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 27
  28. 28. PROJECT • BUSINESS REQUIREMENTS DEFINITION (BU FOCUS) – FTP METHODOLOGIES – PROFIT/COST ALLOCATIONS – 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
  29. 29. IMPLEMENTATION STEPS Definition Solution Transition Design Preparation Preparation and Development to Phase Analysis (Build) Phase Production Project Preparation Review and document Technical Architecture Establish system Transitioning all user requirements, for Profitability Solution tables and table system processes to Establish Initial Work technical environment, columns and build a production Plan Design Profitability Data requirements and review reports environment. Business Rules Establish Staffing & and sources Project Work Set up users, groups The data conversion Organization Plan Technical Architecture Define Template: and security access programs will be for Budgeting and Establish Project ? Reporting rights and define and finalized Planning Solution Scope, Objective & Requirements create hierarchies Training and hand- Approach Design Budgeting and ? TP Methodologies Develop over to RI Staff Planning Business Kick- ff preparation o and Yield Curves Functionalities and Rules ? Unit Cost User Interfaces Kick- ff and o Calculation … where defined Mobilization ? … … … Project Result •Kick Off Event •Business •Solution Design •MIS Solution •MIS Solution •Basic Information Requirements Document for Test GOING LIVE prepared Document 15. travanj 2010 OFSA – UPRAVLJANJE PROFITABILNOŠĆU BANKE 29
  30. 30. KEY POINTS • RISKS – DATA UNAVAILABILITY – DATA QUALITY – 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
  31. 31. WWW.NEOS.HR

×