"The approach fits perfectly to our needs and allows us to quickly react to market changes and business needs." - Łukasz Malik, Head of Project Management, mBank
mBank is one of the largest financial institutions in Poland, both in terms of equity and diversity of product portfolio. mBank specializes in providing comprehensive services for enterprises, it is also one of the leaders in retail internet banking offered through one of the most modern web platforms. The dynamism of mBank; in addition to significant market position; is evident by numerous awards and accolades received from opinion leaders and government institutions
In 2006, the dynamic development of the Bank meant that their existing planning and budgeting solutions could no longer meet user requirements.
Adaption of their existing budgeting system to a new business model for:
- Standardisation of data structures within the reporting system,
- Budgeting in multiple currencies,
- Efficient exchange rates management,
- Presentation of data in investor’s (Commerzbank) structure,
- Calculation of the budget on the basis of selected thematic areas (including the RWA, shadow-accounting, depreciation of property and assets).
Requirements also covered:
• A centralised budgeting system that could collect and organize data from all departments
• Shorten conversion time of data obtained by the system
• Introduction of new system with the possibility of further expansion (without affecting performance)
• A reliable partner who would provide support and implementation services for the above challenges.
Taking into consideration competent co-operation with Codec (old version of the system was deployed and developed by Codec) mBank decided that Codec was the preferred partner to work with in overcoming these challenges.
An important aim was to implement the functionality that would allow full planning processes - the timetable was subordinated to the budget session schedule.
Stage 1: was to prepare the system for a full planning process of the Bank in 2012. This system contained 3 budgeting models: cost, revenue, central (reporting).
• Cost model - is used to enter, calculate and present the Bank's costs; broken down into cost items, cost categories, currencies and organizational units (including headquarters departments).
• A revenue model is used to input, calculate and present the Balance and the Bank's net interest income by product, profit-center units, sectors, currencies and financial departments.
• The central model is used to calculate and present Bank Financials by divisional units and profit-center thematic categories.
Codec installed and configured the new environments, built the Bank's budget models with mechanisms for data exchange, actuals presentation and data reporting and implemented the central metadata management module.
Stage 2: to prepare the system for a full planning process of mBank Group in 2013.
• Group model, provided with a financial consolidation mechanism, is used for plan vs actuals reporting of mBank Group.
In the mBank Group model, companies plan their expenses, balance sheet and P&L with intercompany elimination, then the consolidation adjustments are applied.
An important element of this implementation was the process of training; in terms of knowledge transfer; in order to allow for future system development and maintenance by Bank’s employees.
The entire implementation process was completed in just 12 months – all business expectations were met. Implemented system is a comprehensive support of the Bank planning model and ensures its openness to future development.
“The solution has significantly increased the efficiency of our budgeting process, improved the quality and retrieval of data received, and has significantly increase our analytical capabilities.”
Zdzisław Wojtera, Director, mBank