Bank of Kazan centralized control over receiving all managerial analytics

2017

On September 28, 2017 Bank of Kazan announced implementation of the next stage of the project on development of a performance management system (Corporate Performance Management) on the Circuit platform of production Intersoft Lab.

To increase return from a CPM-system, it was decided to use it as a uniform source of reliable data for receiving the various management information necessary in different fields of activity of Bank and at the different levels of its management. For this purpose a system was expanded the mechanisms of setup and calculation of any managerial indicators intended for independent work of analysts and managers of business divisions with data of storage. Responsibility for information support of all interested services and managers of Bank is assigned by managerial analytics to analytical management.

Using expanded tools of a SRM-system management information for top managers, middle managers, specialists and analysts will be prepared. SRM-mechanisms will be used for analytical support of the tasks arising in different areas of bank management: in operating and investment activities, in risk management, liquidity and the capital, in assessment of profitability and profitability, in motivation of personnel, etc. For this purpose the staff of analytical management will configure individual algorithms of calculation of managerial indicators for the benefit of different categories of users in Bank.

Thanks to availability in the CPM system of all necessary information - primary data and data of management accounting - the interested users will be able quickly to receive the indicators interesting them on different spheres of activity of Bank with required extent of detailing: by the directions of business and product groups, up to sales points, separate products or clients. The calculated indicators are represented in a form, compact and evident for the analysis, - in the form of cubes, time of their calculation is measured seconds.

"The stage of development of a performance management system of bank set as the purpose to increase the efficiency of a managerial system of Bank. It was succeeded to solve several problems at once. First, to make management information address and available in Bank. Secondly, to centralize functions of control over receiving any managerial analytics in scales of all Bank, its divisions and employees as its preparation, irrespective of appointment and the end consumer, is concentrated in analytical management. Thirdly to provide trust to data and to achieve coordination of managerial indicators at all levels of management and in the different directions of banking activity as a uniform source for their preparation is the data warehouse". Elvira Zaripova, chief of Analytical management of KBER LLC Bank of Kazan

2016

On December 20, 2016 the Intersoft Lab company announced end of the second stage of creation of a management system for profitability on the Circuit platform in Bank of Kazan.

During the first stage the storage for accounting data, the normative reference information and information on clients was unrolled, integration into the core banking system of Bank on the basis of Pentaho Data Integration Kettle ETL Open Source is configured, the management reporting is marketed.

Using the Allocations application distribution of indirect expenses to the business directions, sales points and products is automated. Redistribution happens in 7 stages at which more than hundred steps of allocations using more than 90 kost-drivers are executed. Calculation for month under report occupies all a couple of minutes.

The technique of allocations was prepared by employees of the bank with consulting participation of methodologists of Intersoft Lab. According to their recommendation the technique included a concept of virtual cost center. It allowed to consider at expense reallocation features of a financial structure of Bank in which sales points can belong at the same time to the different business directions (corporate business, retail, SME, etc.).

Implementation of the Allocations application was performed according to a technique of rapid implementation of Intersoft Lab.

The bank notes that the mechanism of the return trace of calculation implemented in the application allows all interested persons to check correctness of diversity of expenses on each step of allocations that gives the chance quicker and at the same time more qualitatively to understand a cost structure which influence a financial result.

"We achieved the stage goals: creation of the system of calculation and the expense analysis, transparent and clear for business, distributed on the business directions and products became its qualitative result. With its help we can make more justified management decisions and trace their effects: estimate profitability of products and business directions up to separate sales points, to adjust a product line and to maximize return in the priority directions, to reveal unevident problems and to optimize expenses of bank". Elvira Zaripova, chief of Analytical management of KBER Bank Kazani LLC

In Bank of Kazan in the spring of 2016 the first stage of creation of a management system for profitability is completed. During the project data warehouse infrastructure on the commercial Circuit platform is unrolled, on the basis of Pentaho Data Integration Kettle ETL Open Source integration into the core banking system of bank is provided, the release of the management reporting is automated

In March, 2015 in Bank of Kazan started creation of a business performance management system on the basis of the Circuit BPM platform of development of Intersoft Lab. It was required to bring managerial IT infrastructure of bank into accord to the new principles of management relying on operational detailed information about efficiency of divisions, services and clients for the benefit of financial management, top management and business divisions of bank.

During the first stage specialists of developer company constructed in bank uniform storage for accounting data, the normative reference information and information on clients, configured control procedures of quality of data and provided data purification in storage. For daily data loading in Kontur storage from the core banking system "New Athena", the systems of 1C and files of Excel the free distributed Pentaho Data Integration Kettle ETL ETL platform was used.

Based on the data warehouse unrolled the Management reporting application, configured instruments of enrichment of primary data missing analytical signs and transformations of accounting data in values under the articles of management accounting. Automated managerial adjustments for reflection in management accounting of data on administrative expenses of the centers of the financial responsibility and divisions. Employees of financial management of bank got access to management information in interactive interfaces of the Circuit VRM-system.

According to the results of the first stage of the project in bank the uniform storage of consistent accounting data which replaced the separate selections which before were data source for preparation of the management reporting is created. As a result the quality of data and trust of the management to the key managerial indicators increased. Based on the data warehouse the new uniform methodology of preparation of the detailed management reporting representing a financial result of bank by the centers of the financial responsibility, products, product groups and clients is automated. It laid the foundation for creation of a transparent system of motivation of business divisions, operational management of tariff and percentage policy and a product row, building of interaction with corporate clients of bank, noted in Intersoft Lab.

Besides, reduction of labor costs of data preparation and release of the management reporting at the expense of an exception of duplication of actions of personnel became result of the first stage. It allowed bank to pass to release of the management reporting on a daily basis.

The start of the next stage of the project is planned for the first quarter 2016: it is going to supplement storage with data on loan and deposit agreements, to provide preparation of the analytical reporting under these portfolios of financial instruments, to automate calculation of transfer cost of resources and allocations of overheads.

"Creation of a technology platform for support of modern managerial technologies was the important purpose of a starting stage of the project. The infrastructure of the data warehouse received as a result allows bank to expand consistently further structure of the different analytical tasks given for the solution which in Department of information technologies both financiers, and the earning divisions handle — Bachurin Oleg, CIO KBER "Bank of Kazan" told. — Ready mechanisms of quality control of data, their enrichment and the interactive analysis allow to save on creation of new reports. Also the fact that due to use in the project of instruments of integration at a basis of the Open source software it is reached project budget optimization is important".

"Transition to use of the updated methodology of preparation of the management reporting was connected with implementation of a managerial IT system in bank. First of all, the granulirovannost and frequency of release of reports which prepare on the basis of reliable matched data and by a uniform technique now increased. We had an opportunity to measure a contribution of each business division to a financial result of bank, to quickly control efficiency of banking products, profitability of clients and are sure that the received estimates are comparable and transparent, each indicator can be spread out instantly to components and to prove. A new system became not just the tool accelerating calculations, and a trust basis to the reporting on the basis of which in bank key management decisions are made" — Gallia Gaynutdinova, the chief of financial management of KBER "Bank of Kazan" concluded.