BI systems in Business sector

23 March 2018

     Today, the banking sector differs from other spheres with great flexibility and maturity, for this reason it is increasingly difficult for banks to find advantages over competitors. Banks change their attitude to the data and begin to consider data set as an important resource and source of profit, by increasing their stability in the market. BI (Business intelligence)  comes for help – these are technologies and means of organizing data warehouses and analytical systems for managerial decision-making. Due to the above reasons BI systems are the popular solution among commercial banks.

     Both regulators and commercial banks (financial organizations) need to consolidate and process information from all customers, counterparties and correspondent banks. And this information needs to be analyzed and visualized not only for management, but also for operational administration, which takes a lot of time and resources.

     Let’s try to figure out what is pushing Banks on implementation of full BI system?
What difficulties banks and business companies are facing with during choosing a particular BI solution and within the implementation process?

Let’s begin with the main reasons why analytics is required::

  1. The lack of business data centralized management, and, as a result, the disparity in data provided by units to central office.
  2. Dozens, hundreds or even thousands of reports are used in banks in various bank software systems, such as core banking, payment processing systems, CRM, ERP etc. In this way, the management hardly has opportunity to catch the full business promptly, since the data consolidation for the reports is performed almost manually.
  3. The main reporting press falls, of course, on the heart of the bank - core banking system. This fact definitely does not have a positive effect both on the transaction system functioning and on the all banks sensitive issue - the closing of the financial day.  
  4. Instead of systems that only analysts and database administrators can work with, there is a need for a self-service system with a user friendly interface and easy-to-use navigation for a wide range of employees in order to obtain operational, analytical and management reporting. 
  5. The business user can’t make any report without the participation of IT specialists, and they do not consider such tasks as priority one.  
  6. Increasing demand of users of different rank in the analytics and, as a result, increasing the presure on the IT structure.
  7. A high level of management's need for operational "one-time" extraction of relevant information.

However, after the bank has decided on a full-fledged BI solution, it can be faced with problems that arise in most cases:
  1. The bank units are interested in the implementation of the consolidated model in different extent, which affects the architecture of the BI system and requires much time to develop the model as the required.
  2. In spite of high potential of many modern solutions BI is often used in banks only as a tool for preparing reports, not for analytics. Usually it happens in the following way: at the project’s begining, the customer requests: “let everything works as it is now”. It can take a long time to realize that instead of periodic standard reports, business users can get the analytics that they need personally in the current situation and, accordingly, make reasonable decisions faster.
  3. The base, around which the BI system architecture is developed, is made up of data from core banking system. Modern core banking systems – are full-fledged "monsters" software with their own programming languages and complex, ever-changing business process modules. This is a big barrier for implementing, maintaining and developing a BI system.
  4. The lack of initial set of reports and, thus, the data description required for its formation, has the negative affect on the data quality, as well as on the speed of the system development.

      These problems push core banking vendors on to create pre-configured systems for its "working business model", so that customers, using their systems, can get results almost immediately after implementation.  
Temenos Analytics is a such pre-configured system for Banks that use Temenos T24. The vendor, based on his many years of experience of working with banks and using the best world practices, has created the solution for main problems:
  1. Deep "inherited" integration between the BI system and core banking, which imply a well-designed algorithm by Temenos analysts for the correct transformation of each Temenos  T24 module into a multidimensional financial model. 
  2. Powerful and easy-to-use data export system from core banking and developed mechanism for import and data normalization, which allows fully automate technical changes in core banking applications and transferring them to the storage.
  3. Built up basic multidimensional financial model allows business users to start analyzing the bank's business right after implementation.
  4. A set of more than 150 ready-made bank reports for all business units makes it possible to qualitatively fill them with the necessary data and quickly move to a new system, basing on basic reports.
  5. Significant reduction of the burden on the business units at the implementation stage, as the vendor knows the bank core banking in advance.

     In spite of all obvious advantages of implementing Temenos Analytics for banks using Т24, a tailor-made service partner is an important consideration for the project implementation success, further development and maintenance of the system.
The service partner selection criteria may include:
  • Is it an official  Temenos  partner
  • Is there a positive experience with the  Temenos Analytics  implementation
  • Are the team members certified by the vendor
  • Long-term experience in the banking sector

If your chosen partner meets the above criteria, then, without a doubt, the the BI system implementation will be most effective.

From our side, Foranx, which meets all of the above and many other criteria, is always ready to help you with the choice, implementation and development of your ideal BI system.

BI Lead
Maksim Povzhik

Amrahbank 25 March 2018 AccessBank 25 March 2018