Published on 05-Jul-2011
Prior to implementing its Budget & Reporting solution, FHB had no experience of working with IBM. But the main functions and power of IBM’s integrated solution were decisive factors in convincing the Bank to go with IBM.
To improve FHB Bank’s MS Excel-based budgeting and reporting processes to meet the ever-changing demands created by the Bank’s constant growth, particularly in the area of loan contracts.
The Oracle RDBMS-based Controlling Data Mart records and analyses key indicators for FHB. IBM Cognos Planning Analyst handles budgeting and forecasting. A number of financial functions are provided by IBM Cognos Data Cubes, while planning and forecasting are implemented with IBM Cognos Planning Cubes, with analysis functionality by IBM Cognos PowerCubes.
No more problems with the huge number of different items and easier modelling and “what-if” analyses. The system now meets all specified planning and budgeting requirements while ensuring IT compliance. All controlling indicators are now available centrally and are up to date at all times.
FHB Land Credit and Mortgage Bank Company, a specialised credit institution, was established in October of 1997 by four banks and the Ministry of Finance. By establishing the Bank, the goal of the founders was to establish long-term financing institute, to create opportunities for long-term investments, and to promote the development of the real estate market.
At the end of 2004 in connection with the continuously increasing number of the Bank’s clients FHB Bank (more accurately: the Bank’s Controlling Deparment) came to the decision that they have to improve their MS Excel based budgeting and reporting processes. During day to day work there was a really painful problem that their previous MS Excel based solution was not robust enough to support the ever changing demands caused by the continuous growth of the Bank. Some of the Excel sheets exceeded Excel’s row limitations (by that time the number of loan contracts exceeded 65.000) and even Excel’s functionalities were not efficient enough. Missing quick modelling opportunities and the lack of concurrent multiuser support meant additional hard challenges.
The Banks’ Controlling Department has realised that it is very important and necessary to work with an integrated budgeting and reporting solution in order to do their work with increasing efficiency in the future.
FHB Bank had no experiences with Cognos and other IBM products prior to the implementation of the Budgeting and Reporting solution, but the demonstrated main functions and the power of the integrated solution – which were really unequalled in the market that time – could convince the Bank.
The main components of the solution
The solution consists of three modules: planning, EIS/reporting and the relational database module. As the central component for the analytical data management and the evaluation system, Oracle RDBMS based Controlling Data Mart has been used to record and analyse key indicators. The budgeting and forecasting is executed using IBM Cognos Planning Analyst. Some of the financial functions have been provided by the Cognos data cubes. Planning and foracasting functionality has been provided by the Cognos Planning cubes, analysis functionality by the Cognos PowerCubes.
There are many useful functions helping the work in the bank, which are for example
* mortgage loan cash-flow calculations,
* planning of mortgage bond cash flows,
* investment planning, depreciation calculations,
* Profit and Loss, Balance Sheet plans through various business scenarios, conditions and drivers,
* total control over planning, budgeting and forecasting processes,
* ad-hoc and standard reports can be reached from the BI and Planning solution.
After successfully completing the first expansion stage of the new solution within four months, DSS’s consultants spent the next few months working with FHB to fine-tune the concepts. After the implementation, there were no more problems with the huge number of different items, for example loans, and it was more easier to start modelling different situations (“what if” analyses). The time spent for budgeting and modelling had radically decreased and the employees of the Controlling department could spend more time with the analysis of the processes. As a result they had better inputs for making better decisions.
However, when FHB launched its Commercial Bank subsidiary in 2007, it became necessary to extend the existing solution. At this phase Cognos Planning Contributor was implemented to help using the system concurrently, and to serve the company’ professionals.
The system now meets all specified planning and budgeting requirements while ensuring IT compliance: all controlling indicators are now available centrally, and are up to date at all times. This allows flexible analyses, and supports the entire commenting process of controlling. Indicators and comments are entered locally, via a user-friendly Web interface. The technical department is responsible for administering this controlling system, and can implement any required technical changes directly in the system.
About DSS Consulting Ltd.
DSS Consulting has been a major participant of the information technology market for more than 10 years. We have proved our high level expertise, flexibility and excellent problem-solving abilities in numerous successful projects. Our colleagues are highly qualified professionals with many years of experience focusing on delivering the solution that meets the interest of the customers in their work. Our company has been a pioneer in several fields of the Hungarian information technology market and we can confidently state that we have the greatest domestic practice and experience in these fields.
DSS Consulting Ltd.’s name was chosen from the Decision Support Systems that used to be real novelty at the time of founding the company, and today we probably have the most experienced and prepared data warehouse developer and business intelligence consultant team on the market. Although we are still the best known for this activity, half of our income is generated by new business areas, especially custom application development, data cleansing and the development of so called “intelligent applications”. Our main customers are from financial, public, telecommunication and industry sectors.
About IBM Business Analytics
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Products and services used
IBM products and services that were used in this case study.
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