The document discusses unified financial performance management in the financial services sector. It begins with an agenda covering topics like the needs of financial performance management in financial services. It discusses the pitfalls of multiple financial software products and advocates for a unified approach using a single software platform. The benefits of a unified approach include getting numbers out faster to stakeholders with less effort and cost. Case studies show benefits like improved auditability and decreased risks.

1. Unified Financial
Performance
Management in the
Financial Services
Sector
GEOFF NOBLE
CFO GROUP

2. AGENDA
• What we mean by Financial Performance Management
• Financial Performance Management needs in Financial Services
• Financial Performance Management systems and the pitfalls
• A unified approach to Financial Performance Management
• Benefits of a unified approach
• Some case studies
• Possible next steps and Q&A
2014 The Year of Opportunity

3. What we mean by Financial
Performance Management

4. FINANCIAL PERFORMANCE MANAGEMENT PROCESSES
Planning
Group
/
Corporate
Budgeting
Forecasting
Closing
Consolidation
Management Reporting
Statutory Disclosure
Regulatory Reporting
Scenario Modeling
Opera-ons
/
Divisions
2014 The Year of Opportunity

5. Financial Performance Management
needs in Financial Services

6. WHAT CFOS IN FINANCIAL SERVICES HAVE TOLD US
General themes about the finance function:
- Drive to become business partner / advisor / catalyst / strategist
- proactively bring opportunities to the business
- Reduction in cost of finance
- streamline processes and off-shore mundane
- achieve or beat the top performer benchmarks for costs % revenue
- Increase regulatory attention
- Improve the quality and timeliness of information
…and
automa*ng
Financial
Performance
Management
supports
all
above
2014 The Year of Opportunity

7. WHAT CFOS IN FINANCIAL SERVICES TOLD US
Specific needs for Financial Performance Management:
- Group / Corporate consolidation of plans, budgets, forecasts, and actuals
- consistent reporting and analysis at the group / corporate level
- management, statutory and regulatory reporting and disclosure
- Operational planning, budgeting, forecasting, and reporting
- branch, region, product, customer segment
- Contract level detail to drive out revenue budget/forecast for existing portfolio
- each individual loan/deposit/policy
- Driver based budgeting and forecasting for new portfolio and costs
- Payroll, opex, capex and ICT budgeting
- Cost allocations and profitability analysis by product
2014 The Year of Opportunity

8. Financial Performance
Management systems and pitfalls

9. FINANANCIAL PERFORMANCE MANAGEMENT SOFTWARE
The software industry calls it xPM
FPM
CPM
BPM
2014 The Year of Opportunity
Large
so5ware
vendors
PM
EPM

10. MANY SOFTWARE VENDORS HAVE BOUGHT MULTIPLE PRODUCTS
Planning
Budgeting
Disclosure
Forecasting
Management
tools
Closing
Consolidation
Consolida-on
tools
Planning
tools
Management Reporting
Closing
tools
Data
Integra-on
tools
Statutory Disclosure
Regulatory Reporting
Scenario Modeling
2014 The Year of Opportunity
Strategy
Management
tools
Business
Intelligence
tools
Data
Warehouse
tools

11. PITFALLS OF MULTIPLE PRODUCTS
Multiple specialists
Too many cooks
Cost é
Time é
Complexity é
Value ê
2014 The Year of Opportunity

12. A unified approach to Financial
Performance Management

13. 2014 The Year of Opportunity

14. 2014 The Year of Opportunity

15. HOW TO SIMPLIFY FINANCIAL PERFORANCE MANAGEMENT
• Put the right people on the job
• Ex-CFOs and technically-savvy accountants
• Talk finance, business and technology
• Have a passion for financial performance management
• Use unified software platforms
• One product is better than many
• Must be functional (for financial services) and scalable
• Finance friendly and not require extensive IT involvement
• Apply an outcome focused methodology
• Top-down from vision and goals to staged implementation and use
• One solution architect (and not too many cooks)
2014 The Year of Opportunity

16. 2014 The Year of Opportunity

17. Vision: Provide a unified system for financial performance management across the organisation
Data Model: Processes: Goals: Outputs: Data Sources:
Business
logic
and
financial
rules
• Less effort and
pain to produce
the information
• More relevant
information
• More accurate
and consistent
information
• Transparent
rules and
assumptions
• More timely
delivery of
information
• Less costs to
own, maintain,
run and use
• Flexible platform
to meet future
needs
Management
-­‐Group/Corporate
-­‐Ops/Divs
Statutory
and
Regulatory
Scenarios
and
Analyses
Ad
Hoc
and
other
outputs
Dimensions:
• Periods
• Scenarios
• Categories
• Currencies
• Accounts
• En--es
• Products
• Customers
• Other
2014 The Year of Opportunity
Financial
systems/
GL
Other
sources
Manual
Input
Opera-onal
systems
Management
Actuals
Plans
Budgets
Scenario
Modeling
Plans,
Budgets
and
Forecasts
Dimensions and
calculations to
support outputs
Statutory
Actuals
Forecasts
Exis-ng
porMolio

18. Benefits of a unified approach

19. BENEFITS OF A UNIFIED APPROACH
• Successful implementations - on time, on budget, happy users
• Get the consistent numbers out faster to the people that need them
• With less pain and effort
• Reduce costs
• Increase staff satisfaction in both Finance and in the business
• Provide far more time for analysis…
Become the business partner introducing business opportunities
2014 The Year of Opportunity

20. Some case studies

21. Results/Benefits:
• Single chart of accounts to manage
• Improved auditability and decreased risk
• Integrated disclosure management
• Easy expansion to additional processes
• Competence center and lower TCO
• Shorter closing cycle
The Group
• Revenues €40 billion
• Global 500 #154
• Largest bank in Central-Eastern Europe
System Scope:
• Financial consolidation and regulatory
2014 The Year of Opportunity
reporting
• Statutory and management reporting
• Budgeting and forecasting
• Segment reporting
• KPIs and executive dashboards
• Disclosure management
• Reporting for Chief Risk Officer
Financial Performance Management
system Size:
• 3,800 users
• 800 fully consolidated entities
• 9 sub-consolidation sites
• 300 participants in disclosure management

22. From close to disclosure in Financial Services
> Intercompany reconciliation
> Journals and adjustments
> Controls and validations
> Segment reporting
2014 The Year of Opportunity
CLOSE
> Local close
> Consolidation
> Financial reporting
> Management reporting
> GAAP, IFRS, XBRL
> Board books
DISCLOSURE

23. Planning, budgeting and forecasting in Financial Services
> Bank-wide/Insurance company-wide
budgeting by company / operation /
region / product / customer segment
> Existing portfolio projections at the
individual loan/policy/contract level
> New business portfolio projection
> Driver based payroll, opex, & capex
> IT cost budget
> Cost allocations
> Budget consolidation
> Actual vs. budget reconciliation
2014 The Year of Opportunity

24. Q&A and Possible Next Steps

25. NEXT STEP TOWARDS UNIFYING FINANCIAL PERFORMANCE
MANAGEMENT AND BRINGING OPPORTUNITIES TO THE BUSINESS?
• Apply some of the methods covered today back at the office
• Informal meeting with us to discuss your situation
• Formal Financial Performance Management review
• Copies of Case Studies…email me for copies
• Opinion Leader Lunch Series…email me for details
• Q&A
2014 The Year of Opportunity

26. THANK YOU
GEOFF@CFOGRP.COM