Assets & Liabilities analysis using SAS: second life of legacy data. June 2000 Andrei Trifonov - Raiffeisenbank Austria Dublin

Transcription

1 Assets & Liabilities analysis using SAS: second life of legacy data June 2000 Andrei Trifonov - Raiffeisenbank Austria Dublin

2 Company profile! Representative office in Moscow! Raiffeisenbank Austria, Moscow established in June 1996! Banking General License as of 1996! 100 % ownership of Raiffeisen Banking Group! Full range of banking products for both resident & non-resident corporate and private clients! Euromoney Award as Best Foreign Bank in Russia

3 Main Banking Products :! Account & Payment services! Documentary business! Guarantees! Loans! Treasury services! Capital & Money Market services! Consumer Banking! Equity & Eurobond trading! Corporate Finance

4 Informational systems profile : " Operation Modules: International payments, Corporate Loans, Forex & Money Market transactions, Retail accounts maintenance, Securities trading, Midas to SWIFT gateway " Domestic payments interface " FX & MM front office system; Position keeping and exposure monitoring s/w " Consumer banking automation s/w ; Plastic cards processing center " Reporting tools (Head Office, Central Bank) " Electronic banking system

5 Informational systems profile (under construction): "Unified Message Processing core, STP "Web-server with restricted research subscription channels "Internet banking

6 Hardware & Software platforms :! AS/ with OS/400 v. 4.4 as a main server! Intel-based IBM Netfinity PC servers under Windows NT 4.0! Lotus Notes 4.6

7 Raiffeisenbank Monitoring:! Daily monitoring reports! Central Bank of Russian Federation reports! Head Office reports! Aggregated financial monitoring! Financial reports for marketing strategic solutions

8 Old approach disadvantages: " IT involvement in any arising query/report " Renewal effort & resources expenditures for documentation keeping and updating " Increasing number of data resources

9 Advantages of SAS Technology : " Unified storage of the refined consistent data " Plain categories and analyzed variables " Easy data exploring and creating EIS applications " Hidden trends & links are easy to reveal

10 Financial reports developed: " Management report (Assets & Liability analysis) " Management report (P & L Statement) " Lending and Borrowing analysis (Raifeeisenbank Top Ten on daily basis)

11 Procedures developed: " Data loading, refining and validation procedure (both historical and daily) " Automatic generation of reports during the process of a new data uploading " EIS application to explore data with drilling on all valuable categories

12 Standing Data:! Customers! Currencies list Data Warehouse configuration :! Account descriptions! Account groups structure! Industries directory! Countries! Customer types! Currency rates Analyzed variables:! Account balances (SUM, MIN, MAX)

13 Data volumes :! Daily (detailed / NWAY / extended hierarchy) - 6/10/25M! 27,000 records and 8,000 with suppressing zero balances! Archive detailed data M

14 EIS main screen

15 Lending by customer categories

16 Borrowing by customer categories

17 Detailed level: corporate loans by customer

18 Further Steps :! Transactions datamart! Profitability datamart! Data sources integration

19 Assets/Liabilities analysis using SAS: second life of legacy data 1. Raiffeisenbank Moscow: company profile You can get acquainted with our organisation on the web OOO Raiffeisenbank Austria (RBA, Moscow) was established in June 1996 by Raiffeisen Zentralbank Oesterreich Aktiengesellschaft. RBA, Moscow is the first Russian bank wholly owned by an Austrian banking group to be granted a General License (No. 3292) by the Central Bank of the Russian Federation. This license gives RBA Moscow the right to offer both its resident and nonresident clients a full range of banking products for domestic and cross-border operations in both Russian roubles and foreign currency. In addition to the general license, the Russian Central Bank has granted RBA a retail banking license, which allows us to serve individual clients as well. As a subsidiary of one of the leading Austrian banks, RBA Moscow provides quick, efficient and professional Western-standard services at competitive prices. In 1999 the financial magazine "Euromoney" named RBM Moscow "Best Foreign bank in Russia." RZB itself was awarded by Central European as "Best Trade Finance House in the Region" in 1998 and as "Top Western Commercial Bank in Central and Eastern Europe" in Main banking products of Raiffeisenbank Austria, Moscow are: - Account & Payments services - Documentary business - Guarantees - Loans - Treasury services - Capital & Money Market Services - Consumer banking - Equity & Eurobond trading - Corporate finance The network of Raiffeisen Group subsidiaries and representative offices covers almost all the important regions of this part of the world. RZB-Austria operates subsidiary banks in Bratislava, Bucharest, Budapest, Kiev, Moscow, Prague, Sofia, Warsaw and Zagreb, and maintains branches in London and Singapore, a Finance Company in New York as well as representative offices in Beijing, Brussels, Ho Chi Minh City, Hong Kong, Ljubljana, Moscow, Mumbai (Bombay), New York, Paris and Tehran. 2. Informational systems profile The core of our IS is banking system Midas launched on AS/400. International payments, Corporate Loans, Forex & Money Market transactions, Retail accounts maintenance, Securities Trading, Midas to SWIFT gateway these modules automate our Operations activity. In addition to Midas we have set of department-size applications: - Domestic payments interface - FX/MM front office system - Position keeping and exposure monitoring s/w - Consumer business automation s/w - Plastic Cards Processing Centre - Central Bank of Russia reporting package - Reporting to h/o programs set - Electronic banking system - Unified Message Processing core, STP (under construction) - Web-server with restricted research subscription channels (under construction) - Home banking (under construction) 3. Hardware/software platforms

20 Main banking server is AS/ with OS/400 v4.4. Other servers are Intel-based IBM Netfinity under Windows NT 4.0 Servers with SP6. Mailing and document storage run under Lotus Notes What we had before SAS Since 1997 when we started our activity on the market to 2000 we have got more than 3Gb of archive data. Each information request from our users which current system does not support, definitely requires development. Obviously, when increasing business and getting experience in existing systems, users require more and more reports of increasing complexity, which lead to increasing IT efforts to support business. The most resources consuming directions are internal information analysis and RZB reporting. They require as much information as we have, limited only by original transactional data storage contents. Obviously, following the way of increasing reporting and analysis functionality of each application we currently have lead to necessity to integrate parts of aggregated data from different applications and logarithmic increase of development expenses. That is why we decided to go for data warehousing solution that helps both to integrate data valuable for analysis and, which is very important, dramatically reduce IT resources for developing and supporting data surfing and aggregating tools. Data marts hide unnecessary technical details of data structure and make easy building EIS systems. We named this report " second life of legacy data" meaning, that the only way of extracting sense from Gigabits of transaction details is to integrate data and present them in easy understandable way, ready for grouping, browsing and drilling in all reasonable directions. 5. Assets/Liabilities and Profit/Loss analysis: business demand First data mart we decided to build as structured account balances warehouse. That is for careful investigation of Assets/Liabilities, Profit/Loss, Lending/Borrowing using accounting results with historical trend. Goal: to develop the system which allows to control financial information validity and provide the Management with financial results in easy readable compressed way. Functionality: - Data loading, refining and validation procedure (both historical and daily) - Automatic generation of reports during the process of a new data uploading - EIS application to explore data with drilling on all valuable categories Several investigation threats supported: 1. Management report (Assets and Liability analysis) MIDAS BSPL set 5 on 4 levels detalisation + analysis by customer, CCY, accounts and so on (Cash and Nostro, Security, Lending -- by Res, N/Res, RZB group, Receivable and Accruals, Fixed Assets, Prepayments, Interbank Borrowing --by Res, N/Res, RZB group, Customer accounts, Payable and provisions, Equity) 2. Management report (P&L Statement) MIDAS BSPL (internal group structure) + analysis by customer, CCY, accounts and so on (Operational Expenses, Overhead expenses, Open position, Operational Income) 3. Lending and Borrowing analysis (Our Top Ten on daily base) Lending analysis by type of customer (banks, corp. clients, individuals), branch, CCY, accounts etc. Borrowing analysis by type of customer (banks, corp. clients, individuals), type of account (current accounts or deposits), branch, CCY, accounts, No of accounts etc.

21 6. Data Warehouse configuration That pilot project was developed together with engineers of SAS Moscow office. The source of datamart information is Midas standing data and daily snapshots of Midas account balances table. Among standing data we have: - Customers - Currencies list - Account descriptions - Account groups structure - Industries directory - Countries - Customer types Standing data loaded into warehouse as slow changing dimensions. Detailed data are: - Currency rates - Account balances 7. Data volumes: Daily (detailed/nway/extended hierarchy) - 6/10/25M 27,000 records and 8,000 with suppressing zero balances Archive detailed data - 600M 8. EIS applications ---- Slides numbered of 5 (Power Point presentation) 9. Migration from v6 to v8 MDDB loading redevelopment to incremental. New EIS set development. 10. Further steps Another datamart we are going to develop is "Transactions," where aggregated transactions from different sources would be stored. Basing on this we are going to get the ability to investigate volumes by customer groups/customers, financial instruments/deal subtypes, maturity. The most interesting analysis we are going to put on SAS tools is "Profitability." To make calculations we need to combine different transactional sources and reveal links between them. We will take into consideration: accounting results as direct entries booked on income accounts; transactions' details with linkage between funding and placements; split trading and revaluation results from currency exchange deals; group profitability by profit centres/book codes; grouping by branches and customer groups; commissions included in transactions. From technological point of view two projects mentioned above use only Midas data. We also think about creating CRM systems that combine extended information kept in Lotus Notes databases. It would be useful both for exploring Corporate client's activity and for Individuals. Last one is rapidly growing last months.