Bank Ochrony Środowiska
Case Study
As part of the work on the new strategy, there was a need to build a model to allow efficient calculation of its fundamentals.
Solution category
Bank Ochrony Środowiska S.A. is among the 20 largest banks in Poland. Since 1997, its shares have been listed on the main market of the Warsaw Stock Exchange. It specialises in supporting projects and activities for environmental protection. The bank's offer is addressed to individual and institutional clients, with a special focus on local government units and municipal companies.
Challenge
As part of work on a new strategy of BOŚ Bank, there was a need to build a model allowing for efficient calculation of its basis. To enable effective work on the details of the plan, the model had to allow for quick simulation of the full result of the Bank under different market assumptions and internal parameters.
Solution
The timetable for preparing the strategy required the task to be completed in a short period of time. To support these tasks, the bank chose Cogit and the Oracle Hyperion Planning system. Due to the very tight schedule, the work had to be carried out very efficiently. For this purpose, a joint project team was established. At the initial stage, maximum use was made of the knowledge accumulated in the Excel spreadsheets developed by the bank so far and of the ready models supplied by Cogit.
Hyperion Planning allowed for efficient representation of subsequent elements of the model directly in the system and ongoing control of the results. As a result, the model could be used after six weeks and the whole project was completed within two months. Oracle Hyperion Planning enables the preparation of forecasts and simulations of results for the entire organisation at the level of financial statements and basic indicators within a perspective of 3 to 5 years. The model is based on macroeconomic and operational parameters forecast by banks. In addition to the core commercial activity, the system covers the following areas: treasury, reserves, operational activity, assets and investments, and equity. The controlling department can create and compare alternative scenarios based on various indicators. The results are available immediately to all other users in the bank, directly in the system, via a web browser.
Results
The implementation has met the challenges faced by the Bank, delivering new opportunities and results:
- Translation of strategy into a detailed financial plan
- Flexibility and acceleration and streamlining of the budgeting process
- Consolidation of planning data with execution
- One reliable source of information about the budget and its implementation
- Consistent layouts and unambiguous concepts throughout the system
- Transparency of budget, implementation and reporting structures
- Efficiency, readability, speed of information flow
- Additional channel of communication with data recipients and process participants
- Equivocal assignment of responsibility for individual stages of the process
"We were looking for an experienced partner who, with its knowledge and experience, would quickly and efficiently help build a solution that was important for the bank. We had an advanced IT system which, thanks to its successful implementation, allowed us to meet our expectations."
Roland Pac, Director of the Controlling Department at BOŚ Bank
