The Vozrozhdeniye bank automated the analysis of profitability of branches, the business directions and banking products

The Vozrozhdeniye (JSC) bank entering TOP-20 of the most filial banks automated the analysis of profitability of branches, the business directions and banking products based on the Circuit BPM platform. Using new VRM resheniya bank minimizes labor costs on efficiency evaluation of 53 bank branches. It is provided: transparent calculation of final financial results of branches, the business directions and banking products, technology support at the new level of a system of motivation of heads of divisions.

The Intersoft Lab company, the supplier of data warehouses and BPM systems, completed a new stage of development of a BPM system of Vozrozhdeniye (JSC) Bank which enters TOP-20 of the most filial banks according to RBC. A complex BPM system is complemented with functionality for calculation of allocations – expense allocations on cost centers: to branches, business directions and banking products.

The Vozrozhdeniye bank uses a BPM system based on the data warehouse Circuit from Intersoft Lab company since 2003. With its help the bank conducts such performance management processes as management accounting and preparation of the management reporting, planning of activity of bank, the overhead accounting of head office by divisions, diversity of target and address costs on the business directions and banking products. Besides, a BPM system is used for preparation of the reporting under IFRS.

In process of growth of business of bank and complication of its structure, assessment of profitability of the business directions and banking products required the increasing labor costs. it became more difficult to provide its transparency at traditional technology of calculation on the basis of the tables MS Excel.

To create a system which would provide complex support of this task, the BPM-application "Functional and cost the analysis" from Intersoft Lab was selected. The application expands functionality of a BPM system of bank, executing allocations of overheads to the level of the business directions and banking products of branches and divisions of head office. The project team configured a BPM-application according to the technique of allocation of overheads of branches and structural divisions of Head office accepted in bank.

Calculation of allocations is carried out on distribution chains, by consecutive accomplishment of steps of distribution. Authorized specialists have an opportunity to keep track of results of distribution on each step of such chain, having information on a share of separate articles in costs for a product.

Financial department of bank and top managers receive a packet of report forms for the analysis of financial results of bank in cuts of separate branches, the business directions, banking products and a number of summary managerial reports on financial results of bank in general taking into account allocations. The management reporting which is issued using a BPM-application "Functional and cost the analysis", is also used in the system of motivation of heads of branches, divisions and business directions of bank.

As a result of implementation of the Functional and Cost Analysis application in Vozrozhdeniye bank:

• labor costs on efficiency evaluation of activity of bank branches are minimized;
• calculation of final financial results by branches, the business directions and banking products became transparent;
• technology support of a system of motivation of personnel is provided.

The transparency of calculation of profitability provided with a BPM system will help bank to improve a control system of expenditure of means, to prove development of the most profitable business directions and banking products, to make the relevant management decisions on correction of strategy of bank.