"Centrcredit bank" automated financial planning using predictive analytics

2018: Automation of financial planning

From February to September, 2018 the Intersoft Lab company implemented the project in Centrcredit bank on automation of financial planning using predictive analytics.

The project included upgrade of a technique of financial planning and its automation using the Financial planning application functioning on the basis of the Circuit SRM-platform of production Intersoft Lab operated by bank since 2004.

In a project deliverable in bank the methodology of financial planning and regulations of interaction of participants of budget process is created, process automation of planning and training of specialists is provided, the budget campaign of 2019 is waged and in a short time the financial plan with detailing to the segment level, banking products and structural divisions is created. The staff of Department of planning and finance (planning of target indicators "on top"), business groups and bank branches took part in preparation of the financial plan (opposition to accessibility is more whole also planning "from below"). In total 150 jobs at head office and 18 bank branches are connected to a system.

Significant reduction of terms of holding a budget campaign is reached due to automation such date - and resource-intensive processes as forecasting of a status of the current portfolios based on historical data on the agreements collected in storage of a SRM-system, and "new" businesses on the basis of the set purposes and also due to operational approval of target indicators and versions of plans by participants of planning and automatic consolidation of functional plans in the unified financial plan of bank.

Use of forecasting when planning was the compulsory provision of project implementation. The received tools allow to correlate target performance indicators to the current portfolios and forecasts of development of new businesses, to consider influence on a financial result of changes in a customer behavior, features of regions and other factors — Aliya Nurmasheva, the Head of department of analytical information and management accounting, Centrcredit bank noted.

2015: Project Results

On December 8, 2015 the Intersoft Lab company announced results of development of the project.

The bank passed to use of the version of the Circuit platform 3.1, the uniform corporate data warehouse of bank which integrated data of all information systems of credit institution became data source of financial storage "Kontur" instead of the core banking system.

Office of Centrcredit bank (2013)

The data warehouse is translated on DBMS Oracle Database, for the organization  ETL- procedures  the integration platform is selected Informatica PC, for preparation of the reporting it is used by software Cognos BI, replaced the reporting tools used earlier.

Main results

• Transition to  operation of the next version of Kontur storage caused performance improvement of data processing when loading, calculating and  release of the reporting.

• The functionality of a VRM-application Management reporting supported expanded structure of analytical cuts in which financial results of bank are provided: profit centers, clients and products.

• Automation of calculation of transfer cost of resources on the basis of a method of the approved rate allowed to calculate internal cost for each agreement with analytical signs: "division", "product", "client" that assisted in receiving detailing of transfer income and expenses by a financial, product and client structure of bank.

• For the specified assessment of profitability of divisions, products, clients on the basis of the Allocations application the model of diversity of overheads is developed and implemented.

Larisa Zdanovich, the director of the department of planning and finance  of JSC Centrcredit Bank, noted:

- In two years the modern VRM-system which is completely meeting the requirements of our South Korean partner was constructed. Necessary detailing and the trust level to the management reporting, including for Bank board which allows to estimate profitability of business and large customers is reached, to carry out the analysis of profitability of banking products, to make decisions on formation of percentage and tariff policy, development and optimization of work of retail network, management of structural bank liquidity.

Valery Chausov, the managing partner of Intersoft Lab, told:

- I highly appreciate the results achieved in the project for  JSC Centrcredit Bank. First, we brought our solution into accord of new IT strategy of bank, having fulfilled all requirements regarding integration of Kontur storage with external components of other suppliers. Secondly, carried out the methodical tasks set by bank. Our consultants even were directly involved in development of a technique of allocations of expenses. The approach to cost accounting of products and customer service offered the customer on the basis of regulation of transactions was an effective alternative of more labor-intensive and the Activity Based Costing costly technology. Thirdly, as upgrade of managerial model of bank continued and during implementation of a VRM-system, in particular the product line was significantly updated, we had to make "on the run" changes in software configuration. It was good check for software, we are glad that sustained it.

2014: Project Development

In September, 2014 JSC Centrcredit Bank (Kazakhstan) and Intersoft Lab company announced end of the first stage of the project on control automation by profitability of bank on the basis of the Circuit BPM platform 3.1. The implemented solution conforms to new technology standards of bank and allowed to issue the management reporting by divisions, client and product structures.

2013: Start of the project on control automation by bank profitability

At the beginning of 2013 the IT project on control automation by bank profitability in Centrcredit bank, with the assistance of Intersoft Lab company as integrator and the technological solution Circuit started, the press service of the contractor reported on April 3, 2013.

Effects

Having completed detailed preproject inspection in JSC Centrcredit Bank in November, 2012, specialists of Intersoft Lab company started implementation BPM- the Circuit systems on the basis of industrial DBMS Oracle.

"We cooperate with Kazakhstan Centrcredit Bank nearly 10 years, – the managing partner of Intersoft Lab company Valery Chausov told. – There it was implemented and now the system of management accounting on the basis of the data warehouse Circuit is operated. New requirements are connected with strategic plans of Bank and directed to increase in effective management of business processes and implementation of the new technology standards initiated by the Korean investor using a modern BPM system".

Centrcredit considered offers of IT integrators, solution providers and stopped on the Circuit BPM platform from Intersoft Lab. It answered the severe conditions dictated by bank and its strategic investor. Among them:

• maximum efficiency of implementation;
• development of methodology of diversity of indirect expenses (allocation) on financial results of activity of profit centers which should rely on the standards adopted in this bank;
• existence of functionality for measurement by business operations and also for the analysis of the factors influencing its size.

Control automation by profitability will demand implementation of a number of the drawing products developed by Intersoft Lab company:

• data warehouse Circuit 3.1
• "Managerial accounting",
• "Transfer resource management",
• "Functional and cost analysis",
• "Plan fact analysis".

The project manager from the customer, Mara Rakhimbekova, the head of department of support of processes of financial planning of JSC Centrcredit Bank, noted: "The BPM project in our bank is given the high status. Already on start of the project, after tekhnologo-methodological inspection of bank, the terms necessary for Intersoft Lab for accomplishment of all forthcoming works were determined, – about two years. For such project it is very much deadlines so work is necessary strained".

"Important condition of success of the IT project, – Elena Sidenko, the head of department of financial planning of JSC Centrcredit Bank emphasized, – its quality. Really qualitative project differs in depth of methodological study, a responsible approach to ensuring quality of data, competent load distribution and areas of responsibility between project participants, existence in the implemented software product of such mechanisms which are capable to realize the theory in practice. All these aspects found reflection in the new project with our Russian partner – Intersoft Lab company. I consider guarantee of efficiency of our joint work long-term experience of Intersoft Lab in creation VRM-sistem and the informal relation of all staff of our bank to formulation of the question about fair assessment of profitability of bank".