OFDM Budgeting/Planning Bbuuilidldeerr
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Nq` b kd Ehm ` m b h` k Rd qu hb d r @o o khb ` shn m r Pal Ribarics – EU Enlargement Countries Solition Team, Financial Services Mobil : +36 309 712 028 [email protected] @f d m c ` U`ktdoqnonrhshnm Q N H L dsg nc nknf x O qnc tb s B trsnl dqr E tstqd VVaalluuee PPrrooppoossiittiioonn N esdmsg da `rhrnec dsdql hmhmf B trsnl dqU`ktd hrv qnmf Customer Tenure Customer Value Depth of Relationship Customer Value Customer Wealth Customer Value Customer Balance Customer Value ‘S q` c hshn m ` kV hr c n l ’ r shkkF t hc hm f C d b hr hn m r Rn +hs’r b qhshb ` ksn g ` u d hm en ql ` shn m v g hb g , D m`a kdrsg dhc dmshehb `shnmne`b trsnl dq’rqd`ku `ktd Hc dmshehdrb nrsr`mc sg dhqc qhu dqrnm`a `rhrv g hb g dm`a kdrsg ddeedb shu dl `m`f dl dmsnea trhmdrrtmhsr @ kknb `sdrsg db nrsneqhrj hmkhmdv hsg v g dqdsg dqhrj hr hmb tqqdc Westpac, Australia The effects of actual customer profitability distribution 25% Sample 3m clients 20% Moving 1/3 of the zero profitable % of client base customers up one segment generates an increased client profit contribution of $75m per year 15% 10% 5% 0% -250 -225 -200 -175 -100 -75 -50 -25 0 25 50 75 100 125 200 225 250 Client profit contribution - $ per month AAcchhiieevvaabbllee RROOII CCeennttrraall EEuurrooppeeaann CCaassee SSttuuddiieess S x ohb `koqnehs`a khsx oqnehkdreqnl R knu `j h``mc B y db g Slovakia Czech 69.21% 48.52% 16.37% 18.85% 8.80% 12.09% Profitability Profiles 5.11% 8.38% 2.75% 5.95% 0.75% 4.18% 70.00% 0.04% 2.85% 60.00% 0.00% 1.50% 0.00% 0.23% 50.00% -3.03% -2.54% 40.00% 30.00% 20.00% Slovakia 10.00% Czech 0.00% -10.00% 1 2 3 4 5 6 7 8 9 10 A trhmdrru `ktdnesg doqnehs`a hkhsx hmenql `shnm Incremental revenue due to OFSA profitability Profit management project 10 % profit increase in the top 5 class Total Profit Targeted selling + 10 % new customers 18 % increase in profit 2 times more from the top 5 group e Focused retention u n no OFSA e v -10 % customer churn e OFSA R Profit Management Targeted Selling Focused 2 times more from the bottom 5 group Retention MMeetthhooddoollooggyy ehm`mb h`krs`sdl dmsenqdu dqx b trsnl dq Interest Income 600 Interest Expense 500 Net Interest Earnings 100 Services Fees 25 Professional Services Fees 20 Dealing commission 45 Total Fee Income 90 Account Management Expense 60 Brokerage Expense 30 Other Service Expenses 50 Total Expenses (140) Contribution 50 Capital Charge (35) Profit 15 Across Many Dimensions Account Product Customer Account Branch Officer Total SBU’s Bank Next Account Product Customer Account Branch Officer Total SBU’s Bank Account Produc Customer t Account Branch Officer Total SBU’s Bank Account Produc Customer t Account Branch Officer Total SBU’s Bank Account Produc Customer t Account Branch Officer Total SBU’s Bank Detail Level Business Benefits Profitability Solution • Multiple views of profitability measurement are internally consistent because profitability is calculated and stored at account level • Accurate profitability measures through Activity Based or Standard Costing measures • Allows the identification of the most profitable customers • Risk Based Capital and other attributes can be stored at the account level • Non financial measured linked directly to customer activities that drive profit PPrroodduucctt TTrarannssfefer rP Prirciciningg PPeerfroformrmaannccee A Annaalylyzzeerr EDW AAcctitvivitiyty B Baasseedd M Mggmmtt OOraracclele Core Budgeting/Planning systems WWaarerehhoouussee OFDM Budgeting/Planning BBuuilidldeerr RRisiskk M Maannaaggeerr Other DDisisccoovveerererr RReeppoortrsts OOLLAAPP Value Engines RReeppoorrtitningg F Frraammeewwoorrkk Nq` b kd Ehm ` m b h` kC ` s` L ` m ` f d q • Comprehensive Data Model • Oracle System Administration OFDM • Oracle Balance and Control OFDM • Discoverer Integrator • Oracle Rate Manager • Reports Starter Kit Financial Data Manager Reporting End User Layer Value Engines Chart of Accts Hierarchies Business Rules Other Meta GL Data Transactions Account/Customer Data TTrarannssfefer rP Prirciciningg Nq` b kd S q` m r ed qO qhb hm f • b b ntmsK du dkL `sb g dc E tmc S O • Hrnk`sdHQ Q hrj eqnl A trhmdrr • @ qdV dO qhb hmf O qnc tb srO qnehs`a kx > Value Engines ehm`mb h`krs`sdl dmsenqdu dqx b trsnl dq Interest Income 600 Interest Expense 500 Net Interest Earnings 100 Services Fees 25 Professional Services Fees 20 Dealing commission 45 Total Fee Income 90 Account Management Expense 60 Brokerage Expense 30 Other Service Expenses 50 Total Expenses (140) Contribution 50 Capital Charge (35) Profit 15 B n l o n m d m sr n eS n s` kRo qd ` c Loan/Asset Credit Rate Internal Transfer Spread Pricing Curve TP cost Funding Spread Deposit/Liability Term TTrarannssfefer rP Prirciciningg AAcctitvivitiyty B Baasseedd M Mggmmtt Nq` b kd @b shu hsx A ` r d c L f l s b shu hsx A `rdc B nrshmf • L nc dkS qtdA trhmdrrD b nmnl hb r • N tsotsT mhsB nrsr Value Engines TTrarannssfefer rP Prirciciningg AAcctitvivitiyty B Baasseedd M Mggmmtt Nq` b kd O d qen ql ` m b d @m ` kx y d q PPeerfroformrmaanncceeAAnnaalylyzzeerr • L tkshC hl dmrhnm`kO qnehs`a hkhsx • A trhmdrrQ tkdrC qhu dm • O qnc tb shnmhrdc D mu hqnml dms Value Engines ehm`mb h`krs`sdl dmsenqdu dqx b trsnl dq Interest Income 600 Interest Expense 500 Net Interest Earnings 100 Services Fees 25 Professional Services Fees 20 Dealing commission 45 Total Fee Income 90 Account Management Expense 60 Brokerage Expense 30 Other Service Expenses 50 Total Expenses (140) Contribution 50 Capital Charge (35) Profit 15 d qen ql ` m b d @m ` kx y d qhr ` sn n k TTrarannssfefer rP Prirciciningg AAcctitvivitiyty B Baasseedd M Mggmmtt Nq` b kd A t c f d shm f .O k` m m hm f PPeerfroformrmaanncceeAAnnaalylyzzeerr • O dqenql `mb dA `rdc O k`mmhmf BBuuddggeetitningg/P/Plalannnniningg • E hm`mb h`kR dqu hb drR odb hehb • O k`mmhmf `ssg d@ ooqnoqh`sdK du dk Value Engines TTrarannssfefer rP Prirciciningg AAcctitvivitiyty B Baasseedd M Mggmmtt Nq` b kd Q hr j L ` m ` f d q PPeerfroformrmaanncceeAAnnaalylyzzeerr • R hl tk`sdE tstqdHmb nl d.A `k`mb dR g dds BBuuddggeetitningg/P/Plalannnniningg • @ K B N S nnkrds RRisiskk M Maannaaggeerr • L `m`f dHmg dqdmsHQ Q hrj Value Engines RReeppoortrsts Publish to the Web DDisisccoovveerererr OOLLAAPP Direct Access to the Relational Tables OFSA Consolidate into Multi-Dimensional Framework CCuussttoommeerrss OFSA Customers Bank of Bahrain & Kuwait (Bahrain) Amsouth National Bank of New Zealand KBC (Belgium) Astoria Federal Banco Santander KomercniBanka(CzechRepublic) Bank One (First Chicago) Asahi Bank (Japan) Egyptian American Bank (Egypt) Bank of Hawaii Tokyo Trust Bank (Japan) CIB (Egypt) First Hawaiian Chuo-Mitsui Trust Bank (Japan) Israel Discount Bank (Israel) Comerica Commercial International Bank Generali (Italy) Chevy Chase Bank Bank of Tokyo Mitsubishi (Japan)* Housing Bank of Jordon (Jordon) Fidelity Sumitomo Mitsui Bank (Japan)* Clearstream (Luxembourg) FHLBSF Bank of Colombia State Bank of Mauritius (Mauritius) First American National Bank Central Bank of Colombia ABN AMRO (Netherlands) First Union Mastercard Banco Commercial Portuguese (Portugal) GMAC Kemper Insurance Banco Nacional de Credito Imobiliario (Portugal) Michigan National Republic Insurance BancoInternational de Credito (Portugal) National City Bank Bank of America BancoEspiritoSanto (Portugal) Northern Trust Commonwealth Bank BSF (Saudi Arabia) Ohio Savings Bank St. George Bank (Australia) Caja Duero (Spain) Republic National Bank of New York Bangkok Bank (Thailand) Abank (Alternatifbank œ Turkey) Sanwa Bank California Bank of Asia (Thailand) Akbank (Turkey) South Trust Siam Commercial Bank (Thailand) Disbank (Turkey) Star Bank ChoHung Bank (Korea) Ege Bank (New Name Oyakbank œ Turkey) TransAmerica Consumer Finance Housing & Commercial Bank (Korea) Finansbank (Turkey) Union Bank California Industrial Bank of Korea (Korea) Kocbank (Turkey) USAA Gwang JuBank (Korea) Oyakbank (Turkey) Wachovia NACF Bank (Korea) Co-Operative Bank (UK) Washington Mutual KDB Bank (Korea) Abbey Natinoal (UK) Zions Bank Corporation Shin Han Bank (Korea) Chase Manhattan (UK) CaisseDesjardins Daewoo Securities (Korea) Lloyds TSB (UK) Canada Trust DaeHanInvestment Trust Securities Yorkshire Building Society (UK) Royal Bank of Canada (Korea) Merrill Lynch Toronto Dominion Korea Exchange Bank (Korea) Hungtington Bank (US) Citibank Australia Hyundai Capital (Korea) Hanak (Korea) Westpac Trust (New Zealand) LG Securities (Korea) US Bank œ Firstar (US) Bank West (Australia) DaeguBank (Korea)\Perwira Affin Suncorp Metway (Australia) Bank (Malyasia) Metropolitan Bank and Trust Co. Royal Sun Alliance (Australia) MakatiCity ' d b d m sv hm r •Erste Bank Group •Raiffeisen Bank Group TThhee FFuuttuurree E-Business Suite Integration FFininaanncciaialsls E-Business Suite Unified Data Model r EPB HHRR r EPB e e Reporting v v r r (Web) e e Mfg GL, AR, Expense Other Reporting S Mfg S r Tables Tables r n n e e o o v Balanced v i i Balanced r r t t l l e Scorecard e a a a Scorecard a t t S S c c r i r i l l Mgmt Rpting n o n o p HR & Mfg Stats OFSA p Periodic Ledger o o P P i i p p Discoverer t t e e A A a l a (Web) l i i c c EPM c EPM c i EPM i 9 9 l a l a r r p Customer & p O p O TCA p TTPP, ,R RMM, ,B BPP Customer A Account A i Rpting i 9 9 Other ABM & PA/OFSA OLAP Reports Bus Rules (Web) Source (Web) Systems Oracle 9i R2 – 10g Database Workflow, Security, Concurrent Mgr Metadata Management (CWM) Enterprise Information Hub: FEM Data Model Oracle E-Business Suite Corporate Performance Management OFSA Applications Customer FEM Data Model Management Ledger Account FEM_BALANCES Tables … Dimensions & Statistics Hierarchies Summary Data Tables FEM_DATA1 … 20 FEM Metadata QQ UU EE SS TT II OO NN SS AA NN SS WW EE RR SS .