Industry Type: Banking | Driver Based Budgeting Solution for a large MNC
The Bank is a major international bank. It is the consumer banking arm of one of the largest companies in the world. It has operations in more than 100 countries and territories around the world. The total asset is around US$ 1.938 trillion and employee strength of 332,000. In addition to the standard banking transactions, it offers insurance, credit card and investment products.
The Problem
The Bank uses a complex credit card planning model to calculate “cost of funds” for the loan to be raised from the treasury market for the monthly outstanding credit card receivables from its customers which is a result of purchases made from the Bank’s Credit Cards. Forecasted data from different Asian countries is converted from different currencies into one single currency for analysis of the profitability, performance and other KPIs. The bank uses a complex set of Excel sheets to collect, consolidate and transfer this data; which is manually entered and emailed between the concerned user groups within the bank. This leaves the “credit card planning model” to be error prone, slow and de-standardized Moreover the Management does not have a visibility on the overall process and were not able to track down to the root cause of the issues that they were facing.
The Solution
Driver Based Budgeting Solution for the Credit Cards division was implemented using Hyperion planning, Hyperion Data Integration Management and Hyperion Financial Reporting.” An ETL process using Hyperion Data Integration Management was defined to extract daily outstanding balances from a sub-system (CALM), convert and consolidate them to monthly balances based on the maturity of the balances. This consolidated data was loaded into Hyperion Planning System using automated scripts. Hyperion Planning system uses the cost of fund as a key driver among hundreds of other drivers for calculating EBIT and Net Profit for its credit card division. The Planning system integrates data from countries across Asia and allows the users to set targets, enter budget amounts and compare with the actual data for various countries, territories and regions within Asia. The reporting module provides the top management with the consolidated reports for analysis using Hyperion Financial Reporting.
By converting forecasted business data from multiple currencies into a single reporting currency, Hyperion extends the reach and usability of the system to more than 100 users in different Asian countries. The Driver Based Budgeting solution built on Hyperion Planning has centralized the credit card planning model for the bank by eliminating the use of error prone Excel sheets and saving a considerable amount of time which can now be on Analysis and resolution on issues. This project has proven to be a stepping stone for the bank’s planning applications as they will use the same model for various products and countries within the Asia region.
Key Benefits:
The Bank is a major international bank. It is the consumer banking arm of one of the largest companies in the world. It has operations in more than 100 countries and territories around the world. The total asset is around US$ 1.938 trillion and employee strength of 332,000. In addition to the standard banking transactions, it offers insurance, credit card and investment products.
The Problem
The Bank uses a complex credit card planning model to calculate “cost of funds” for the loan to be raised from the treasury market for the monthly outstanding credit card receivables from its customers which is a result of purchases made from the Bank’s Credit Cards. Forecasted data from different Asian countries is converted from different currencies into one single currency for analysis of the profitability, performance and other KPIs. The bank uses a complex set of Excel sheets to collect, consolidate and transfer this data; which is manually entered and emailed between the concerned user groups within the bank. This leaves the “credit card planning model” to be error prone, slow and de-standardized Moreover the Management does not have a visibility on the overall process and were not able to track down to the root cause of the issues that they were facing.
The Solution
Driver Based Budgeting Solution for the Credit Cards division was implemented using Hyperion planning, Hyperion Data Integration Management and Hyperion Financial Reporting.” An ETL process using Hyperion Data Integration Management was defined to extract daily outstanding balances from a sub-system (CALM), convert and consolidate them to monthly balances based on the maturity of the balances. This consolidated data was loaded into Hyperion Planning System using automated scripts. Hyperion Planning system uses the cost of fund as a key driver among hundreds of other drivers for calculating EBIT and Net Profit for its credit card division. The Planning system integrates data from countries across Asia and allows the users to set targets, enter budget amounts and compare with the actual data for various countries, territories and regions within Asia. The reporting module provides the top management with the consolidated reports for analysis using Hyperion Financial Reporting.
By converting forecasted business data from multiple currencies into a single reporting currency, Hyperion extends the reach and usability of the system to more than 100 users in different Asian countries. The Driver Based Budgeting solution built on Hyperion Planning has centralized the credit card planning model for the bank by eliminating the use of error prone Excel sheets and saving a considerable amount of time which can now be on Analysis and resolution on issues. This project has proven to be a stepping stone for the bank’s planning applications as they will use the same model for various products and countries within the Asia region.
Key Benefits:
- Synchronization financial and planning processes
- Microsoft Office integration • Single web interface to remove the inconsistent excel Sheets.
- Predefined and guided planning process.
- Scalable architecture to be implemented across other products within the region
- Robust data integration and currency conversion.
- Integrated, best-in-class financial reports