Novikombank upgrades control facilities of AHR

On June 9, 2014 the Intersoft Lab company announced implementation in divisions and branches of Ltd JSB Novikombank of a technique of the centralized operating control behind the actual execution of the estimate of administrative expenses on the platform software "Budget of Household Expenses".

Project Tasks

Within 10 years Novikombank operates a VRM-system on the basis of the data warehouse Circuit of version 2.5 for support of preparation of the management reporting and accounting of the actual budget implementation of household expenses. The functionality for budgeting of AHR which up to 2014 was applied by bank is built in the data warehouse.

With growth of a branch network, in 2014 the bank made the decision to upgrade a technique of budgeting of household expenses: pass to the centralized control of execution of the estimate AHR and for IT support of the updated technique to implement the new application version "The budget of household expenses".

Project Progress

At start of the project the management of Ltd JSB Novikombank allotted half a year on automation of budget control and accounting of the actual execution of the estimate AHR, but the project is implemented ahead of schedule, in three months.

For implementation evolution process was broken into two stages. For June 9, 2014 the first phase – transition to the centralized control of execution of the estimate, both in divisions of head office of Novikombank, and in the branches located in Moscow, St. Petersburg, Nizhny Novgorod, Rostov-on-Don, Togliatti, Samara, Tula, Kazan and other cities is completed.

During the course of performance the project in bank the structure of budget items is optimized, routes of approval and control of orders on payments are simplified and made more transparent, reporting system, accompanying process of control and the analysis of execution of the estimate is developed.

Within three months the centralized control of execution of the estimate AHR in scales of all bank, including regional network is automated. The management of bank received the convenient IT tool which provides operating control and accounting of the actual execution of the economic budget.

The Budget of Household Expenses application of version 3.1 used in the project is implemented in OLTP architecture, it promoted increase in its performance. Using the electronic document management embedded in the application reconciliation procedure of orders on payments is automated, support of functions of automated verification of the amounts of payment orders for exceeding of limits is implemented. By means of document flow setup mechanisms, in case of change of processes of estimate control, the staff of financial department of bank can independently change schemes of approval of budget documents.

For loading of payment documents "The budget of household expenses" is integrated from the core banking system Diasoft FA# Bank existing in bank. Functions of matching of payment documents and orders on payments for formation of the sheet of execution of the estimate are supported. The release the plan fact of the reporting for operating control and the analysis of the actual execution of the economic budget is automated.

Project Results

Ltd JSB Novikombank and Intersoft Lab company announced transfer to production operation of a BPM-application "The budget of household expenses".

"Centralization and optimization of management of administrative expenses – the first task among the actions for improvement of techniques and technologies of financial management planned by bank. The functionality of the implemented BPM-application "The budget of household expenses" provides complete IT support of the updated technique regarding control, accounting and the analysis of the actual execution of the estimate AHR, – Roman Yefimov, the vice president of Ltd JSB Novikombank told. – Expenses of branches daily, at the level of documents for payment, are controlled by head office of bank is, perhaps, a main outcome for today. Novikombank continues work on automation of the centralized technique of planning of the economic estimate, and will connect the corresponding regular functions until the end of the current year".

The application became a basis for cost optimization in scales of all bank. The mechanism of the centralized operating control implemented with its help guarantees that means in branches and sales points are spent strictly according to the planned budget. A system will automatically check that payments in a branch network did not exceed limits on expenses, and the budget controller of Financial management daily keeps track of purpose of each payment in a branch network, monthly checking several hundred payment documents.

Due to data exchange of a system of budget control from the core banking system working in bank, employees of the bank quickly obtain information on accomplishment of payments, daily analyze the plan fact the reporting on execution of the economic budget.

The Bank notes that the detailed information on payments which is stored in the application became the historical database on household expenses. On the basis of this information responsibles can analyze a cost structure and plan the optimal economic budget for the next year, keep track of dynamics of purchase prices and optimize purchases. So, for example, it was succeeded to cut down expenses on paper, on 55% of costs for stationery, on 24% for 36% household expenses.