ERP for Financial Services Enterprise

Vu The Cuong

Senior Solution Consultant

Agenda: Introduction Today Business Challenges Banking Solution Architecture Oracle Financials Oracle Self Service for Bank Intergration with Core Banking Results achieved by Customers

Introduction
About the Speaker Vu The Cuong
Responsible for ERP Solution for Capital Market. 2 Years in Brokerage, Market Making at Stuttgart Stock Exchange 10+ Years in providing Business Process Consulting, ERP Solution Implementation, Trading Back Office Implementation, Project Management.

Today Business Challenges

Complex Financial Service Value Chain
Suppliers
Financial Intermediaries
Clearing House Exchanges Other

Goods & Services Providers Capital Markets Firms

Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Customers

Today Business Challenges

Lack of multi-dimensional view of profitability analysis by Suppliers Finance Goodssales channel, organisation and more... & Services product, customer, Providers Lack of well-designed EIS forCapital monitoring decision making Markets Regulators and performance Firms Resource spending time on low-value activities such as data collection and consolidation, reviews, approvals and report preparation. Insurance Burdensome Budgeting and Forecasting Process (long Consumer budget cycle, outdated information,...) Agents Stay compliant with continuous changing regulation. Product Providers
Business

Banking Solution Architecture

Risk Management Credit Operational Market Risk Risk Risk Treasury Asset & Liability Mgt

Performance Management
Workforce Analytics

Transfer Activity Based Customer Data Pricing Costing Metrics Transformation

Integrated Reporting, Planning & Forecasting

Automated Financial Reports Analytical EPM Modules Data Mart Extraction, Allocations, Data Transformations
Project

Customer Product Currency Transaction

Channnel Segment Branch

Information Delivery

Business Planning & Forecasting Processes

User ID GL account Product Actuals Budgets Plans Scenarios Hierarchies

Automated Consolidation

Time (History) Cost Revenue Process Balances Other

DWH Transformation Operational ERP Apps. HRD GL Payroll FA AR Other Finance Reference Resource

Balanced Scorecard Reporting

AP PO Project Accounting

Data Extraction, Integration & Cleansing & Middleware Trx

User Driven OLAP processes

Business/Event Mapping Rules

CRM and Channel Management Systems Middleware

Banking Systems

Loans

* *

Debit Cards Credit Cards

Deposits

Scripting
Branch

Client Data Mart

Direct Access Point of Sale

Contact Log
Web ATM

Collections

Telephone Banking

Items Processing

*- to be replaced

Oracle Financials Solution Overview

Single Integrated System
Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Customers

Oracle Financials Solution Overview

Procure-To-Payment Process
Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Customers

Procure to Pay
Requisition Management
Requisition Generated
A requisition for material (either direct or indirect) can be generated automatically or manually based on production need N O Requisition Approved? YE S

Purchase Order Issue

Supplier Selected
Vendor is selected based on ASL and existing contracts

Requisitions Managed and Reviewed

Requisitions are reviewed for completeness and for necessity

P.O. Issued
A Purchase Order (P.O) is issued against the existing contract The P.O. may be a blanket P.O., in which case it will also include a release schedule

Purchasing

P.O. Finalized
P.O. Authorized
The purchase manager approves the purchase order.

P.O. Receipt and Shipment

P.O. Sent to Supplier P.O. Receipt
The Vendor receives the P.O. and prepares to fulfill the order

Material Prepared
The material is gathered and prepared for shipment

Material Shipped
The supplier ships the material An advance ship notice is sent to the manufacturer after the items are shipped

The P.O. is sent to the supplier This step may be done over EDI, XML, fax, purchasing portal, or by phone

Purchasing

iSupplier Portal

Goods Received
Receive Material
Receive materials from suppliers, either into inventory or into an inspection area. Goods Approved? YE S

Inspect to Disposition

N O The P.O. is matched against the packing slip to check correctness

Supplier Return to Settlement

Purchasing, Warehouse Management

NOTE: Even when the wrong goods are shipped and received, the receiver may choose to keep them in which case the payment will be settled as if it was an original order from the receiver

Roles
Purchasing Manager Supplier Receiving Clerk Purchasing Clerk

Procure to Pay

Create Requisition and Submit for Approval

Procure to Pay

Create Requisition and Submit for Approval

Procure to Pay

Requisition is approved

Procure to Pay

Autocreate PO based on Requisitions

Procure to Pay

Create Invoice with PO Reference

Procure to Pay

Matching 2,3,4-Way

Procure to Pay

Change Price on PO

Oracle Financials Solution Overview

Asset Management
Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Customers

Managing Fixed Assets Adjustments Asset additions

Manual External CIP

Transfer s

Online inquiry Reports

Retirements Depreciation Taxes

Journal entries

Adding Assets from External Sources Using Mass Additions Add invoice lines Mass Oracle Oracle Payables or Additions Purchasing other system process Add CIP asset lines Create journal entries Depreciation journal

Oracle Assets

Oracle Projects

Run depreciati on

Adding an Asset Manually

QuickAdditi ons Assets where default rules apply

Detail Additions Assets that require more information

Oracle Assets

Adjusting Assets

Reclassification Mass Depreciation Unit Adjustment Adjustment Financial Information Adjustment Reserve Adjustment Unplanned Depreciation

Mass Change

Adjustments

Revaluation Invoice Line Addition

Transferring Assets
General Ledger Number
Company Region Cost Center Account Product SubAcct
03 300 300 3000 300 3030

Depreciation Expense Accounts

General Ledger Number

Company Region Cost Center Account Product SubAcct
03 300 300 3000 300 3030

HN.SF.BLDG1

Locations

HCM.PA.BLDG3

Nguy n Vn A Employee 33

Employees

Nguy n Vn B Employee 117

Depreciating an Asset
Asset Life

Oracle Payables Adjustm ent

Automate d addition

Manual addition

Transfer

Run Reports depreciati on Create journal entries

Retireme nt

Retiring an Asset
Asset Life

Automated addition Invoice Adjustment

Manual addition

Transfer

Create journal entries

Depreciati on

Retireme nt Reinstatement

Asset Management Place Asset in Service

Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Asset Management System calculates depreciation

Suppliers
Financial Intermediaries Goods & Services Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Budget Management

Budget Management
Suppliers Goods & Services Upload budget values Financial Providers Intermediaries using easy to use spreadsheet interface
Finance Companies Capital Markets Firms Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Streamline Corporate Business Flow

Suppliers

Proactive Budgeting Control

Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Financial Intermediaries

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Streamline Corporate Business Flow

Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Streamline Corporate Business Flow

Suppliers
Financial & Plan Intermediaries Goods & Services Providers Transact & Record Capital Markets Firms Finance Companies

Budget

Allocate & Consolidate

Report
Regulators

Analyze historical

Product budget Providers

entries Develop plan Companies Develop process Approve, adjust, and Banks post Gather and set

Transact business results, new trends Create accounting Insurance

Allocate costs Brokers Perform

translations and Agents eliminations

Convert to XBRL Issue financial

statements Consumer Publish management reports

Business

Many U.S. multinationals are still not Channels fully prepared to meet new deadlines for closing their books.

Streamline Corporate Business Flow

Ledger Integration Automate & Enforce Journal entries generation from subSuppliers Finance Goods & Services Companies ledgers Financial Providers
Intermediaries Capital General Markets Ledger Firms

Insurance Companies

Sub-Ledgers

Banks

Agents

generated automatically on accounting events in subledgers Brokers Can review and post in Consumer GL

Journal entries Regulators

Product Payables Providers

Assets

Receivables

Display accounting
impact of transactions in General Ledger and in sub-ledgers

Business

Channels
Projects Purchasing Core Banking Other System

T-account format Trial balance format

Streamline Corporate Business Flow

Flexible Chart of Account Structures GL Accounting &Key Suppliers Finance Goods Services
Financial Company Intermediaries Providers Capital Markets Firms Companies

Branch Department Account Product Sales Channel

Insurance Companies Banks

Account String
Brokers Consumer Agents

Product Intercompany Providers

Analysis Future

Channels

10.11.000.353100.001.000.10.001000.000.000
Company.Branch.Department.Account.Product.Sales Channel.Intercompany.Analysis.Future.Future

Streamline Corporate Business Flow

Suppliers

Automated Resource-Intensive Processes Reduce Data Entry Errors and Improve Productivity
Goods & Services Providers Firms Finance Companies Regulators

Financial Intermediaries

Capital Journal Automatic Processing Markets

Recurring Auto-Allocation Insurance

Companies Brokers Consumer Agents

Product Providers Approval Routing Channels

Reversal

Banks

Business

Import

Streamline Corporate Business Flow

Recurring
Suppliers
Financial Intermediaries Goods & Services Providers

Skeleton Finance
Companies Capital Markets Firms

Fixed
Regulators

Formula

Dr. Reserved for Bad Debt Dr. Utilities Expense Insurance Dr. Rent Expense Companies Dr. Stationery Expense Banks Dr. Misc. Product Expense Dr. .. Providers Cr. Cash Channels

Agents

XXX XXX Brokers XXX XXX XXX XXX Business XXX

5 % of A/R . . Consumer . . . .

Streamline Corporate Business Flow

Template-Based Report Publishing Put Report Creation in the Hands of Finance Suppliers Finance Goods & Services Companies Professionals Financial Providers
Intermediaries

Report Template

Capital Markets Firms

Regulators

Insurance Companies Banks

Brokers

Product Providers

XML Agents Publisher

Consumer

FSG* Report as XML Output

Published FSG* Report

Business

Create reportsChannels reporting and compliance for internal Use templates to standardize reports and achieve professional quality

Streamline Corporate Business Flow

Export report to Excel and drilldown
Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Streamline Corporate Business Flow

ERP Benefits Improve Decision Making
Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Role Transformation Brokers Reporting
Integrated

Finance Companies

New Focus
Regulators Decision Support
Sophisticated analysis & problem solving Embedded

Problem finding After-the-fact

Confrontational

Decision Support Insurance Companies Banks Control

Control

Consumer Agents Process Re-engineering Business

Product
Technology constrained Manually intensive
38

Reporting

Transaction Processing
Streamlined

Channels
Transaction Processing

Traditional Focus

Integrate with Core Banking

Integrate with Core Banking 1st Step

1a - T24 Core Banking System places the output files into the specific folder in Oracle Server System every end of day. Among these files also included a text file for daily currency conversion rates. 1b After placing all of its output files, T24 inserts a record into Process Init. table. This will trigger off an execution of a shell script for automatic initiation of Oracle GL processing steps.

Integrate with Core Banking 2nd Step

First Shell script runs a request to load the text file for daily currency conversion rates to the GL daily conversion rate interface. Then shell script runs the request to import data from that interface to currency conversion rates table. Next, Shell script run a request to load the data from text files to the Metadata table and Staging table. The shell script uses the FND loader to transfer data from text file to Staging table and Metadata table. Each detail line of the text file will be loaded as a record in the staging tables. The shell script then invokes the Concurrent Program at Oracle GL to process the data from staging table.

Integrate with Core Banking 3rd Step

A Custom Program (run as a concurrent program) checks all check sums provided in the T24 source text files (which have been loaded into Metadata table) to ensure the received file are in good status. The Custom Program will process the data in Staging table and Metadata table. It will check data for business rules for further processing. If the errors occur they will be listed in the log file of the concurrent request. Data from Staging Table will be processed and inserted in to GL Interface table.

Integrate with Core Banking 4th Step

The record that has been successfully inserted to the Oracle Interface table will be copied to a History Table for archiving. The number of processed records will be registered on the log file.

Integrate with Core Banking 5th Step

When all the data had been successfully inserted to GL Interface table, user can run standard concurrent request program to import it into Oracle GL tables to create journal entries. These journal entries can be viewed and posted in Oracle GL to affect the balance sheet.

Results Achieved by Customers

Suppliers
Financial Intermediaries Goods & Services Providers Capital Markets Firms Finance Companies Regulators

Insurance Companies Banks Agents

Brokers Consumer

Product Providers Channels

Business

Customers

Results Achieved by Customers

Barclays Live on Suppliers Oracle E-Business Suite and Oracle Hub and Finance Goods & Services Spoke: Companies Financial Providers Intermediaries Procurement Internet Capital Markets Regulators Sales Analysis Firms Hub and Spoke. Develop a new banking product only once, and then deploy it on Brokers Insurance Oracle Hub and Spoke Companies Consumer Quickly and economically deliver services to customers across Banks Agents the whole Product range of channels and Barclays products Providers Business Channels Customers

Results Achieved by Customers

Suppliers
Goods & Services Providers Capital Markets Firms Finance Companies

Financial Lloyds Intermediaries

Live on Oracle E-Business Suite: HR, Self-Service HR, Payroll, iProcurement, Financials Implemented with no customizations 30% ROI in Insurance months, expected Brokers first 18 payback in under Companies 6 years Agents Reduced average recruitment cycle from 12 to 7 weeks Product
Providers Channels
Business

Customers