Neoflex automated process of fulfillment of requirements of IFRS 9 in Uralsib Bank

2020: Automation of process of fulfillment of requirements of IFRS 9

The Neoflex company announced on January 21, 2021 project completion on complex automation of calculation of cost of financial instruments and reserves on the expected credit losses according to requirements of IFRS (IFRS) 9 in PJSC URALSIB BANK.

For calculation of all necessary financial performance the Finastra Fusion Risk system was implemented. As the integration platform in the project the Informatica PowerCenter software product was used.

Within the project the command of Neoflex automated calculation of gross carrying amount, the expected credit losses and reserves for products of business lines of corporate, small and retail lending in strict accordance with methodology of bank and regulatory requirements. Besides, calculation of all necessary indicators for a range of treasurer transactions of bank, such as transactions with bonds and transactions of the return repo and also calculation of reserves for URALSIB banking group within perimeter of consolidation of the reporting was implemented.

Loading and quality control of the data necessary for accomplishment of calculations and also unloading of the calculated indicators in the accounting systems of bank were automated using the integration Informatica PowerCenter platform. Within the project data from several tens sources, including the centralized data warehouse, analytical show-windows of service risk management of bank and also different Excel files were integrated.

As a result, business users received the powerful analytical tool which is completely automating all steps of business process, beginning from work with initial data and finishing with the formal approval of results of calculation. The implemented solution allows specialists of bank to configure flexibly rules of calculation of different indicators using clear business rules and also it is more convenient to analyze data on the calculated reserves, using rich tools of visual analytics of the Fusion Risk system.

Implementing solution on the Fusion Risk platform allowed bank to automate a large number of tasks of calculation of the key financial indicators who were earlier executed manually, having reduced thereby the corresponding operational risks and having increased productivity of staff of business divisions. At the same time integration and providing the high level of quality of the diverse sources given from a large number was the major project task, and the command of Neoflex completely coped with it, having shown the high level of competence. Availability of the qualitative, detailed data in all necessary cuts will allow bank not only to carry out the automated calculation of reserves according to requirements of the IFRS 9 standard, but also to increase quality of decision making on credit risk management — noted in the press service of PJSC URALSIB BANK.