Business Intelligence Geared Towards Your Unique Needs

business intelligenceRemember the days of point in time period ending management information, when you analyzed historical data to determine what was working and what needed change?

Well, that’s now been supplanted by interactive business intelligence (BI), which is basically the same thing, only using technological tools and systems to gather, store, access, and analyze data trended over time to help your financial institution’s leadership make strategic decisions. It also refers to the ability to identify a key piece of information and then click on it to drill to the detail behind it. While there are multiple tools available that do this, most of them are geared towards retail, manufacturing and other industries, and incorporate little about the banking environment.

BI’s Value in Banking

Business leaders in banking have very specific needs, which can’t be fulfilled by technology created for tracking physical inventory. Business intelligence offers value to banking executives when it’s able to deliver real-time reports on their loan portfolios, profitability of subsidiaries and acquisitions, and the performance of certain types of products. When your leadership team is reviewing the performance of a particular pool of loans they don’t want to be looking at information that’s two weeks out of date. That’s what happens, though, when all you have available is historical data, or your staff needs to collect information from multiple sources and compile what’s needed on spreadsheets. This is a costly and time-consuming ongoing business model.

The Current State of Affairs

The scenario above faces most banking executives today, however. Many organizations have holding companies with several different subsidiaries that make up the bank’s business.

Each subsidiary has its own income statement, assets, liabilities, etc., and in multiple instances compiling regulatory and management reports is a very manual process. When the leadership wants to know where things are at mid-month, waiting until 14 days after the month-end reports are consolidated doesn’t help much. They want to look at current information and drill directly to the details to understand what’s driving the change or anomaly.

What Banks Really Need

To get the true value of business intelligence, it’s paramount for everyone in your financial institution to be able to access the data they need at the time they need it. That means being able to generate and view trending information onscreen with a simple click. This is best accomplished using a central repository of up-to-date information and a browser-based reporting tool having the ability to drill down to the source details. Implementing an effective BI solution will also allow for more effective resource utilization as well.

The Good News

Fortunately for bank execs, there is now a solution to all of these issues. JOHO OneSource™ offers the financial industry a data warehouse solution that enables customized access for all bank employees that uses the same information from the same sources and provides access to only what the user needs to do their particular job.

Whether that’s a leadership view for identifying future product potential, or a teller view to provide good customer engagement, BI makes it possible for everyone in your organization to deliver exceptional service and contribute to the profitable growth of the institution.

 

What to Look for In a Core Evaluation Consultant

A bank’s core processing system is one of the largest single capital outlays for financial institutions and should not be a purchase decision that’s made overnight. Banks’ executive teams need to start looking for new processors 18-24 months before their current contract expires. Given the price point for new systems, even companies satisfied with their current vendor are conducting extensive due diligence before deciding whether or not to renew or move to a new provider. This is an exhaustive, time-consuming process, and unless your bank has all the requisite skills in-house, you’re likely to outsource the management of the many required tasks.

Here are attributes you should look for in a core consulting provider:

An Objective Position

Your core processing consultant should take a neutral position when it comes to vendors, instead of holding predetermined notions of what vendor you should use. Unfortunately, many consultants have preset notions surrounding which vendors you should choose. A better approach is to identify your specific needs through discussion and interviews. Once the consultant understands your pain points and long-term business strategy, they are more likely to find a vendor to meet your needs. Look for a consultant with no affiliations to potential vendors and ask them how many different vendors and products they have recommended to other clients. This will ensure whether or not the consultant conducts an objective assessment process.

Expertise in Core Banking Applications

Banks typically work with a core processing vendor for 10 to 15 years. Finding a new vendor is complex, and the more experience your consultant has with core banking applications, the better. Choose a core consulting advisor with enterprise software experience who understands the intricacies of the banking environment. This will provide the resources that can help your organization identify your requirements and provide guidance on finding and implement the correct solutions.

A Well-Developed Process

Performing the due diligence required to select a new core processing vendor isn’t a task for just any project manager. To secure expertise in areas where you need it most, select a business partner with a well-developed process comprising formal planning, project management, identification, and implementation of core banking applications.

Extensive RFP Experience

Appoint someone with extensive experience in managing the RFP (Request for Proposal) process. Make sure they are capable of:

  • Developing required documentation and sending it to vendors with the right capabilities
  • Reviewing and scoring responses according to predetermined weightings
  • Presenting the financial institution’s project team with appropriate options
  • Conducting thorough due diligence to identify two or three vendors to make presentations onsite to your leadership
  • Reviewing detailed pricing and proposals revisions, re-scoring, and making appropriate recommendations

Once a vendor is selected, your consultant should also be equipped to handle contract negotiations with the vendor on your behalf.

Knowledge of Ancillary Systems

Every financial institution is different, and that means different approaches and different ancillary services exist. If you have a specific need for mortgage processing, for example, and the best option for you is a specific ancillary system, then your consultant should be prepared to direct you accordingly.

Finding the right core consulting professional is challenging, but if you contract a professional firm with prior enterprise application experience in banking, you’ll have a seamless transition to your new system.