oracle erp for banking
TRANSCRIPT
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� 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 � 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 FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
• Exchanges
• Other
• Clearing House
Channels Customers
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Today Business Challenges
Suppliers FinanceGoods & Services
Providers
CapitalMarkets RegulatorsFirms
� Lack of multi-dimensional view of profitability analysis by product, customer, sales channel, organisation and more...� Lack of well-designed EIS for monitoring decision making and performance� Resource spending time on low-value activities such as data collection and consolidation, reviews, approvals and report preparation.
Business
ProductProviders
Consumer
Insurance
Agents
report preparation. � Burdensome Budgeting and Forecasting Process (long budget cycle, outdated information,...) � Stay compliant with continuous changing regulation.
Banking Solution ArchitectureA
naly
tical
EP
M M
od
ule
s
Customer Channnel
BranchTime
(History)Transaction
ProductCurrency
CostRevenueProcessBalances
Automated Consolidation
Automated Financial Reports
Integrated Reporting, Planning & Forecasting
Info
rma
tio
n D
eli
ve
ry
Data Mart Extraction, Allocations, Data Transformations
Transfer
PricingAsset &
Liability Mgt
Treasury
Data
Transformation
Activity Based
Costing
Performance ManagementCredit
Risk
Operational
Risk
Market
Risk
Risk Management
Customer
MetricsWorkforce
Analytics
Business Planning & Forecasting Processes
Project
User IDGL
account
Product-
ActualsBudgetsPlansScenarios
Segment
Resource
Other
ReferenceFinance
DWH Transformation
Data Extraction, Integration & Cleansing & Middleware
Op
era
tio
nal
ER
P A
pp
s.
Trx
ProcessBalances
Other
CRM and Channel Management Systems
ATMTelephone Banking
WebPoint ofSale
DirectAccess
Branch
Scripting Client Data Mart Contact Log
User Driven OLAP processes
Balanced Scorecard Reporting
Bu
sin
es
s/E
ve
nt
Ma
pp
ing
R
ule
s
GL
Project
Accounting
FA AR
POAP
Info
rma
tio
n D
eli
ve
ry
Loans
Credit
CardsCollections
Debit Cards
Banking Systems
Items
Processing
Deposits
Mid
dle
wa
re
Payroll
HRD
ScenariosHierarchies
* * *
*
*- to be replaced
Oracle Financials Solution Overview
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Single Integrated System
Channels Customers
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Oracle Financials Solution Overview
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Procure-To-Payment Process
Channels Customers
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Procure to Pay
P.O. Finalized
Purchase Order IssueRequisition Management
P.O.
Requisitions
Managed and
Reviewed
• Requisitions are reviewed for
completeness and for necessity
Requisition
Generated
• A requisition for material (either direct or indirect)
can be generated automatically or manually
based on production need
Supplier
Selected
• Vendor is selected based on ASL and existing contracts
Requisition Approved?
YES
NO
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
P.O.
Sent to
P.O. Receipt and Shipment
P.O. Material Material
Purchasing
Goods Received
Purchasing Manager
Supplier
Receiving Clerk
Roles
Inspect to Disposition
Authorized
• The purchase manager approves the purchase order.
Receive
Material
• Receive materials from suppliers, either into inventory or into an inspection area.
Purchasing Clerk
Sent to
Supplier
• The P.O. is sent to the supplier
• This step may be done over EDI, XML,
fax, purchasing portal, or by phone
Receipt
• The Vendor receives the P.O. and
prepares to fulfill the order
Prepared
• The material is gathered and
prepared for shipment
Shipped
• The supplier ships the material
• An advance ship notice is sent to the manufacturer after
the items are shipped
Goods Approved?
YES
Supplier Return to
Settlement
NO
• The P.O. is matched against the packing slip to check
correctness
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
Purchasing iSupplier Portal
Purchasing, Warehouse
Management
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
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Asset Management
Channels Customers
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Asset Asset additionsadditions
TransferTransferss
AdjustmentsAdjustments
RetirementsRetirementsOnline Online
ExternalExternalManualManual CIPCIP
Managing Fixed AssetsManaging Fixed Assets
RetirementsRetirements
DepreciationDepreciation
Journal entriesJournal entries
ReportsReports
Online Online inquiryinquiry
TaxesTaxes
Mass Mass Additions Additions processprocess
Add invoice Add invoice lineslines
Oracle Oracle AssetsAssets
Oracle Payables or Oracle Payables or other systemother system
OracleOraclePurchasingPurchasing
Adding Assets from External Sources Using Mass AdditionsAdding Assets from External Sources Using Mass Additions
Run Run depreciatidepreciati
ononCreate journal Create journal
entriesentriesDepreciation Depreciation
journaljournal
Add CIP asset Add CIP asset lineslines
AssetsAssets
Oracle Oracle ProjectsProjects
QuickAdditiQuickAdditionsons
Detail Detail AdditionsAdditions
Assets Assets where where
default rules default rules
Assets that Assets that require more require more
informationinformation
Adding an Asset Manually Adding an Asset Manually
default rules default rules applyapply
informationinformation
Oracle Oracle AssetsAssets
Adjusting AssetsAdjusting Assets
Mass Change
Reclassification
Unit AdjustmentMass Depreciation
Adjustment
Adjustments
Financial Information Mass Change
Invoice Line Addition
RevaluationReserve
Adjustment
Adjustments
Unplanned Depreciation
Information Adjustment
Depreciation Depreciation Expense Expense AccountsAccounts
General Ledger Number
Company
Region
Cost Center
Account
Product
SubAcct
03
300
300
3000
300
3030
General Ledger Number
Company
Region
Cost Center
Account
Product
SubAcct
03
300
300
3000
300
3030
HCM.PA.BLDG3HCM.PA.BLDG3HN.SF.BLDG1HN.SF.BLDG1 LocationsLocations
Transferring AssetsTransferring Assets
HCM.PA.BLDG3HCM.PA.BLDG3HN.SF.BLDG1HN.SF.BLDG1 LocationsLocations
EmployeesEmployeesNguyễn Văn ANguyễn Văn A
Employee 33Employee 33
Nguyễn Văn BNguyễn Văn B
Employee 117Employee 117
Asset LifeAsset LifeAutomateAutomate
d d additionaddition
Manual Manual additionaddition
TransferTransferAdjustmAdjustmentent
Asset LifeAsset Life
OracleOraclePayablesPayables
Depreciating an AssetDepreciating an Asset
entent
ReportsReports
Run Run depreciatidepreciati
onon
Create Create journal journal entriesentries
Retirement
Retiring an Asset Retiring an Asset
InvoiceInvoice
Asset LifeAsset LifeManual Manual
additionaddition
TransferTransfer
Automated Automated additionaddition
AdjustmentAdjustment
RetirementDepreciatiDepreciati
ononCreateCreatejournal journal entriesentries
ReinstatementReinstatement
Asset Management
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Place Asset in Service
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Asset Management
Suppliers FinanceGoods & Services Companies
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
System calculates depreciation
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Budget Management
Budget Management
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Upload budget values
using easy to use
spreadsheet interface
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Proactive Budgeting Control
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Allocate & Consolidate
Plan &Budget
Transact & Record
• Analyze historical results, new trends
• Transact business • Allocate costs
Report
• Convert to XBRL
Streamline Corporate Business Flow
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
“Many U.S. multinationals are still not fully prepared to meet new deadlines for closing their books.”
“Many U.S. multinationals are still not fully prepared to meet new deadlines for closing their books.”
results, new trends
• Develop plan
• Develop process
• Gather and set budget
• Create accounting entries
• Approve, adjust,and post
• Perform translations and eliminations
• Issue financial statements
• Publish management reports
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Ledger IntegrationAutomate & Enforce Journal entries generation from sub-ledgers
• Journal entries
generated
automatically on
accounting events in
subledgers
General
Ledger
General
Ledger
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
subledgers
• Can review and post in
GL
• Display accounting
impact of transactions
in General Ledger
and in sub-ledgers
– T-account format
– Trial balance format
Payables Assets
ProjectsOther
System
Receivables
Purchasing Core
Banking
Sub-LedgersSub-Ledgers
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarketsFirms
Brokers
FinancialIntermediaries
Flexible Chart of Account Structures
� Company
� Branch
� Department
� Account Account StringAccount String
GL Accounting Key
Channels
ProductProviders
Consumer
10.11.000.353100.001.000.10.001000.000.000
BrokersInsuranceCompanies
Banks Agents
� Product
� Sales Channel
� Intercompany
� Analysis
� Future
Company.Branch.Department.Account.Product.Sales Channel.Intercompany.Analysis.Future.Future
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Automated Resource-Intensive ProcessesReduce Data Entry Errors and Improve Productivity
� Journal Automatic Processing
� Recurring
Auto-Allocation
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
� Auto-Allocation
� Reversal
� Approval Routing
� Import
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Recurring
Dr. Reserved for Bad Debt
Dr. Utilities Expense
Skeleton
XXX
XXX
Fixed
5 % of A/R
….
Formula
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Dr. Utilities Expense
Dr. Rent Expense
Dr. Stationery Expense
Dr. Misc. Expense
Dr. …..
Cr. Cash
XXX
XXX
XXX
XXX
XXX
XXX
….
….
….
….
….
….
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
ReportTemplate
Template-Based Report PublishingPut Report Creation in the Hands of Finance Professionals
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks AgentsXML
PublisherFSG* Report
as XML Output
Published FSG* Report
• Create reports for internal reporting and compliance
• Use templates to standardize reports and achieve professional quality
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Export report to Excel and drilldown
Channels
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Streamline Corporate Business Flow
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
ERP Benefits – Improve Decision Making
DecisionSupport
New Focus
Role Transformation
Decision Support
Control
Problem finding
After-the-fact
Sophisticated
analysis &
problem
solving
Channels
Product
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Transaction Processing
Reporting
Control
Support
38
ProcessRe-engineering
Reporting
TransactionProcessing
Traditional Focus
Manually
intensive
Confrontational
Technology
constrained
Streamlined
Integrated
Embedded
Integrate with Core Banking
� 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
Integrate with Core Banking – 1st Step
record into Process Init. table. This will trigger off an execution of a shell script for automatic initiation of Oracle GL processing steps.
� 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.
Integrate with Core Banking – 2nd Step
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.
� 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
Integrate with Core Banking – 3rd Step
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.
� 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 – 4th 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.
Integrate with Core Banking – 5th Step
Results Achieved by Customers
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Channels Customers
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
Results Achieved by Customers
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarkets RegulatorsFirms
Brokers
FinancialIntermediaries
Barclays• Live on Oracle E-Business Suite and Oracle Hub andSpoke:– Internet Procurement– Sales Analysis– Hub and Spoke.– Develop a new banking product only once, and then deploy it on
Channels Customers
ProductProviders
Consumer
Business
BrokersInsuranceCompanies
Banks Agents
onOracle Hub and Spoke– Quickly and economically deliver services to customers acrossthe whole range of channels and Barclays products
Results Achieved by Customers
Suppliers FinanceGoods & Services Companies
Providers
CapitalMarketsFirms
Brokers
FinancialIntermediaries
Lloyds• Live on Oracle E-Business Suite:
• HR, Self-Service HR, Payroll, iProcurement, Financials
• Implemented with no customizations
• 30% ROI in first 18 months, expected payback in under
Channels Customers
ProductProviders
Business
BrokersInsuranceCompanies
Agents
• 30% ROI in first 18 months, expected payback in under
6 years
• Reduced average recruitment cycle from 12 to 7 weeks