report 2015.2016 international

Transcription

1
REPORT 2015.2016
INTERNATIONAL
COLLABORATIVE
INNOVATIVE
WELLCONNECTED
FLEXIBLE
2
2015.2016
FROM THOUGHT TO ACTION.
6 ZEB—YOUR PARTNER FOR CHANGE
16 ZEB.PARTNERS
1
BUSINESS MODEL
18 BERNER KANTONALBANK
Reviewing the status of digital transformation
22 THE ASSOCIATION OF GERMAN BANKS
Management audit
26 LBS WESTDEUTSCHE
LANDESBAUSPARKASSE
Repositioning sales operations in the
low interest rate environment
30 MEDIOLANUM BANKING GROUP
Software enables strategy
36 MÜNCHNER BANK
Securing business and shaping the future
in a digital era
40 SANFELICE 1893
Pricing management: enhancing the re-pricing process
2
OPERATING MODEL
3
FINANCE & RISK MODEL
4
STUDIES
46 CATELLA AB
60 BANK OF CHINA
86 ZEB.STUDIES
Outsourcing the risk management function
50 DEUTSCHE BÖRSE GROUP
Process review: implementing regulatory
requirements in a DAX-listed company
Implementing zeb.control—
simulation and planning tool
64 GRAWE GROUP
Implementing Solvency II with zeb.control
54 FALCON PRIVATE BANK
68 HELABA
Introduction of SAP Subledger for international
accounting
FinSA/MiFID II: defining the product strategy
and gap analysis
Focus on markets
72 INTERNATIONAL WEALTH
MANAGEMENT PROVIDER
Optimized profitability with
Avaloq MIS add-on module
76 KFW
Relaunching SAPFin
80 PORSCHE BANK AG
Creating a recovery plan in compliance
with BaSAG
92 CONTACT
94 IMPRINT
6
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zeb Your Partner for Change
ZEB—YOUR PARTNER FOR CHANGE
in the financial services industry
The consequences of the European debt and financial
crisis have again confronted companies in the European
financial sector with major challenges in 2015. Looking
back, it needs to be noted that the sector was unsuccessful in sustainably resolving its profit weaknesses
and in following more successful paths with innovative
business models. However, a lot happened in the sector
in 2015. A constructive trend towards a new start could
be felt. For the first time since the Lehman collapse of
2007, the main issue was not how to survive the crisis.
Instead, open and detailed discussions were held about
the opportunities for existing business models—within
the framework conditions that are likely to consolidate
in the near future—and how they can be utilized. The
will to think laterally and to pave new paths could be
seen again and again. 2015 can thus be regarded as
the year that widespread innovative and pioneering spirit returned to the financial industry! The perspective of
banking supervision has also largely shifted towards the
viability of business models.
The public has positively noted and intensively discussed the initial consequences of this new mindset.
This has led to multiple long-standing companies from
the financial industry presenting new approaches and
innovative ideas in 2015, which will break new ground
for the entire sector. With their products, they were able
to achieve promising positions in the race for customers
in the markets of the future. In addition, largely consistently and smoothly, they managed to work through the
necessary homework and further adjustments of the
business model, which both continue to put pressure on
the entire financial industry.
Besides the ongoing flood of regulation from European
and domestic supervisory authorities and the persisting
low interest rate policy of the European Central Bank,
which has even involved switching from zero interest to
negative interest rates, the extra work has especially
included the comprehensive issue of digitalization. All
companies from the European financial industry were
forced to address this major issue intensively and at
various levels, because Internet giants, start-ups and financial technology (fintech) companies enhanced their
positions in competition for financial services during the
year and have thus increased the pressure on established market participants.
Driven by a largely stable economic environment in Germany and easier access to the market for risk capital,
this development led to a powerful wave of fintech startups. Radically simplified business models and digital innovations such as new kinds of lending and interest rate
platforms, Internet-based robo advisors or global block
chain technology have created new standards; meanwhile, they have also raised the question of how these
technologies can be managed long-term and safely from
various viewpoints.
Triggered by a broad change in customer behavior,
traditional credit institutions and banks had to accept
that long-standing value chains were broken with little
effort even though customers and their needs had not
changed fundamentally. The function of financial intermediary has been subjected to a major change. This
dramatically increased the willingness of the traditional financial industry to talk to newly established fintech
or start-up companies. The resulting discussions about
partnerships and cooperations were more intense than
ever before. Established finance companies aimed to be
part of and to shape the changes themselves.
Fintech companies also had good reasons to approach
the traditional market participants. They were facing the
major challenge of overcoming the omnipresent, as yet
largely-unknown-to-them issue of regulation. In addition, cooperation strategies are needed to identify customer needs more comprehensively.
Indeed, European and domestic regulatory authorities
again increased their output of regulations in 2015.
The European Banking Authority (EBA) alone rolled out
over 450 individual measures in 2015. These included
technical standards and guidelines as well as detailed
implementation instructions. In particular, the small to
medium-sized financial institutions and insurance companies have suffered the worst from this almost overwhelming flood of instruction and reporting. Just as in
previous years, they were again forced to provide considerable personnel and financial resources for implementing the regulations.
In light of this, again in 2015, many banks and insurance companies were unable to develop viable concepts
for their future. The German market is still lagging behind in terms of innovations in the financial sector when
compared internationally—there is a long way to go. At
the start of 2016, the sector is thus again facing a monumental task of interlinking the challenges and opportunities from digitalization, regulations and low interest
rates in sustainable business models and in a way that
increases earnings.
Positive examples of the last year give rise to hope that
this task can be accomplished, provided that the institutions identify own core competencies and look out for
suitable partners unreservedly. Therefore, cooperations
across long-standing and fixed borders have become
first choice. Added value for customers is the decisive
aspect in this context. If institutions are able to convey
this added value in a user-friendly and memorable way,
the prevailing situation in the financial services market
will change. Even companies that lost ground in 2015
will be able to recapture this ground and to gain new
strength.
8
9
Prof. Dr. Stefan Kirmße
Results of the financial industry
Looking back at the 2015 global banking market, we
have to state that the previous year has to be regarded
as another difficult year for the entire sector. The worldwide slump in stock markets in August and September,
triggered by the economic turmoil in China, hit banks
hard, too. The market capitalization of the entire sector—
characterized by a steep increase in the first half of the
year—returned to the previous year’s levels by the end of
the year. Among the top 100 institutions, company valuations faced a major decrease, on average, according to
the price-to-book ratio. As in most years since the financial crisis, with a value of -2.3%, these institutions had
another negative average total shareholder return (TSR)
in 2015—consequently, holders of bank shares had to
settle for a negative yield despite high volatility. 2016
also started with some turmoil: The economic difficulties
in China continued to put global capital markets under
enormous pressure.
Also in terms of the banks’ profitability, 2015 was a
game of two halves. While in the first half of the year,
some institutions were able to achieve record results,
the last two quarters were characterized by significantly
worse results on average, leading to 2015 results only
slightly exceeding the 2014 return on equity. Especially
the European banking market did not exhibit substantial
improvements and therefore on average still features
a return on equity that is too low. However, a positive
aspect of 2015 is that many institutions were able to
clearly strengthen their capital base again. When looking at the future, however, the situation remains tricky,
since the historically low interest rate level will continue
to afflict net interest income and thus one of the major
sources of earnings. Besides, an increasing number of
new regulatory initiatives already leads to higher costs
for institutions. This double burden will continue to constitute a challenge over the coming years and determine
the management agenda of European banks.
Challenges in the
financial services sector
Last year, regulatory requirements were once again a
major topic for large parts of the financial industry and
also for the majority of the project portfolios. Accordingly, the financial industry’s wish for a tangible reduction
of the number of regulatory initiatives was not fulfilled.
In numerous institutions, 2015 was marked by the stabilization of Basel III reports, aiming at optimizing the
technical implementation and assuring the quality of the
reporting processes.
Additionally, universal banks, in particular, worked hard
to implement the BCBS 239 requirements. To realize
integrated finance and risk architectures, a massive restructuring of data flows and processes is needed and
will keep institutions busy for many years. Furthermore,
a multitude of preliminary studies and impact analyses
around Basel IV topics were conducted, including the
new standardized approach for credit risk and the new
capital floor, the fundamental review of the trading book
and the interest rate risks in the banking book. These
revealed that the accumulated effects of the individual
initiatives continue to exert pressure on capital ratios.
By the end of the year, institutions started to prepare
themselves for the new European credit reporting system
AnaCredit, which will have to be implemented in Germany by mid-2017—thus even before the implementation
date suggested by the EBA.
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Our strategy and organization
Banks and savings banks also face further enormous
regulatory challenges that have an effect on 2016. Ten
German banks, for example, are currently devoting considerable effort to preparing themselves for this year’s
EBA stress test. At the same time, (ECB) supervision initiated the SREP process that proportionately affects all
institutions. The process is expected to result in capital
add-ons in Pillar 1 (so-called “Pillar 1+ approach”). And
the German Recovery and Resolution Act (Sanierungsund Abwicklungsgesetz, SAG) introduced the “Minimum
Requirements for Own Funds and Eligible Liabilities”
(MREL), effective as of 2016 as a minimum requirement
for bail-in liabilities that demands a corresponding management and control process. Finally, the expected next
MaRisk amendment will constitute another item on the
2016 regulatory agenda.
Consequently, in 2016, the aforementioned flood of regulation will not subside and instead require numerous
implementations with a clear impact on business and IT
architectures in banks. To efficiently meet this requirement, institutions will have to manage existing and future initiatives using an integrative and comprehensive
approach to a greater extent than before. Establishing
adequate tools, processes and organizational units will
become more and more important to ensure compliance
with new requirements and cost-efficient implementations. Hence, regulatory management will take on a
strategic importance and become a relevant competitive
edge.
German insurers, too, had to hit important milestones
last year in implementing Solvency II requirements: As
part of the Solvency II preparatory phase, in June and
July 2015, insurance companies had to provide the supervisory authorities with first annual reports and then in
autumn with first quarterly reports. All of our clients that
have implemented and regularly use our zeb.control.solvency II solution package were able to submit the legal
reports on solo and group level without any disruptions
and on time. We at zeb, together with our clients, are
very proud of these successful implementations, since
they represented a first step in completing the demanding and comprehensive preparation work. We are certain
that all insurance companies will still have to invest considerable efforts to efficiently handle further increasing
technical and time requirements over the next few years.
In this context, integrating the Solvency II view into corporate management (Pillar 2) will become more important and involve additional challenges—which are not yet
in the center of attention of some insurers.
zeb
From thought to action.
As Germany’s second largest management consultancy,
zeb has the necessary tools and equipment to analyze
and assess the upcoming challenges and to design calculable project concepts for implementation. We strive
not only for perfectly fitted solutions, but also for sustainable, measurable and long-lasting success. We are
also convinced that outstanding industry knowledge is
indispensable for developing tailored solutions and concepts. As the largest European strategy and management
consulting company specialized in financial services, we
rely on an implementation process based on strategic
intellectual expertise and excellent hands-on skills. From
thought to action. To this effect, our collaboration- and
network-oriented organization with 25 practice groups
acts in a highly specialized and client-oriented manner.
Our practice groups can be divided into three high-level
subject areas:
1. In the strategy & business model field, we work on
total bank and business-segment-specific issues together with our clients in order to adapt the competitive
profile of the financial services provider to the changing
market conditions and to ensure a sustainably profitable
growth path. We work according to the different business
models with dedicated specialist teams for the market to
develop practical and feasible solutions. Fundamental
strategic issues are as much part of our service portfolio as detailed concepts and implementation support in
the different sales topics in retail and corporate banking.
To this effect, we use our wide-ranging experience from
national and international projects within all client segments. Project assignments range from new, promising
market positioning as well as integrating and restructuring sales channels to leveraging potential, e.g. with the
help of pricing strategies or process adjustments. In addition, our clients benefit from our extensive know-how
with regard to practical sales training and leadership
coaching.
2. Our comprehensive expertise in restructuring financial services providers and in further developing their
operating models helps our clients to significantly improve their performance and results. Based on tried and
tested process models, analytical methods and tools,
sound benchmarks as well as innovative approaches for
strategic, process and organizational development and
in consideration of the relevant legal framework, we support our clients in restructuring plans, in the setup of efficient governance structures, in end-to-end optimization
and efficiency enhancement of bank-based and insurance-specific processes. We also focus on the optimization of sourcing strategies and the further development
of transaction settlement platforms in transaction banking, lending business and investment banking. In addition, the combination of business and IT know-how from
a single source makes it possible to comprehensively
support our clients in selecting core banking systems or
in evaluating and exploiting the performance potential of
existing systems to the greatest extent. Moreover, zeb is
the right partner for the strategic preparation, conceptual design and implementation of merger and integration
processes.
3. We at zeb deal with economic, regulatory and accounting-specific issues for managing financial services
providers in various dimensions. The field of activity
ranges from strategic issues in the context of group management enhancement to the technical and operational
implementation of changed regulatory frameworks. With
the latest developments in mind, our specialist practice groups develop tailored solutions for the pressing
questions in bank and insurance management. This
enables us to adequately support financial services
providers within and outside Germany thanks to our
strategy consultants, business specialists and IT staff. In
2015, we focused on the implementation of regulatory
requirements and the support of decision makers for the
necessary realignment of management areas (finance,
risk, treasury) in the light of low interest rates, cost pressure and increasing (regulatory) requirements. Analyzing
the impact of Basel III and IV, designing integrated
finance architectures, implementing BCBS 239 and new
12
13
Dr. Patrick Tegeder
accounting standards (such as IFRS 9) and continuing
to process Solvency II requirements are just some examples illustrating the variety of our project areas. The
success of our position has been proven by a significant
increase in turnover both in these areas and with regard
to our traditional management topics.
As an integral part of these three subject areas, we offer
our clients profound IT and HR expertise from a single
source. zeb’s IT expertise ranges from strategic positioning of ORG/IT work, the design of business and technical
target images, effective management of IT application
and development to transformation and integration of
process and IT landscapes. Our clients benefit from clear
answers to key challenges for IT: tangible reduction of
complexity and costs, further increasing performance
requirements including feasible integration of the “digi-
tal world” and manageability and security—also from a
regulatory perspective. Our subsidiary findic focuses on
designing IT concepts and integrating technologies and
applications relevant for banks. Our consulting approach
to total bank management is also supported by our successfully established zeb.control standard software. Our
human capital expertise bundles profound knowledge
of personnel and change management topics. Professional, specialized consulting and methodological
knowledge are control levers used to align processes
and organizations towards optimal development and
use of staff potentials. Change management as an integrated consulting element is essential for preparing and
qualifying executives and employees for changes, thus
allowing for a smooth implementation of innovations. By
doing so, human capital makes an important contribution to ensuring our clients’ sustainability.
15
Home for talents
Our services and results
New clients
Regular clients
11
89
Clients
Figure 1: Client structure in 2015
(in % of the consulting turnover)
Our employees
Other
Business economists
Lawyers
Econometricians
Physicists
4
Economists
Mathematicians
Business administration graduates
IT specialists
3
2
7
5
Consultants
8
43
8
9
Figure 2: Consultant profile
With a 2015 turnover of EUR 179 million, zeb has extended and strengthened its position as a leading and
highly specialized consultancy for the financial services
industry. As one of the top consulting firms in the German-speaking market, zeb will continue to focus on
opening up its international markets, which made a
considerable contribution to turnover with more than
30% in 2015. On the client side, 28% of the turnover
in Germany was generated from global banks, 25% from
regional banks and 17% from specialized commercial
banks, insurances and others. The majority of our clients
have been with us for years. Last year, we achieved 89%
of our turnover with clients who had already worked with
us in previous years. The share of new clients accounted
for 11% in 2015 (see Fig. 1).
11
Business informatics
specialists
zeb sees itself as a “home for talents”, offering room
for creative development and entrepreneurial thinking
to graduates and young professionals. Our employees
are zeb. Over the past year, 130 new employees were
hired, increasing our current workforce to more than 900
employees. As in previous years, graduates with a degree in business administration or economics or an MBA
constituted the largest share of our new hires with 56%,
while business informatics specialists, computer scientists, mathematicians and physicists accounted for 35%
in 2015 (see Fig. 2). But an excellent academic education is only one important prerequisite for a successful
consulting career. With the exception of our employees
from the natural science areas, the majority of our staff
can therefore either look back on previous professional
bank, savings bank or insurance experience that goes
beyond regular vocational training experience, or had
previously gained specific consulting expertise. This experience enables them to think in terms of problems and
solutions and thereby to develop practical problem-solving approaches.
As a strategy and management consulting firm with excellent technical and implementation expertise, we will
continue to expand the stable growth of our core markets
and competencies in 2016, to promote our internationalization across Europe and to ensure a consistent level
of innovation. We aim at a sustained, profitability-oriented turnover growth in the double digits. To continue this
growth path, on January 1, 2016, we included Thorsten
Helbig in our group of Partners, which now comprises 56
colleagues. As in the past, we would like to expand our
workforce by approx. 150 new hires.
For us at zeb, it is particularly important that our employees collaborate as partners, which involves the intelligent combination of individual skills. Because our
corporate culture’s value system is based on mutual
appreciation, fairness and a distinct team spirit. To this
effect, it is of special importance to us that we continue
to live up to our growing corporate social responsibility.
As a consequence, our self-image, our professional
and responsible actions and therefore also our interaction with clients and business partners have been
verbalized in our Code of Conduct, which applies for all
zeb employees. Further information on our corporate
social responsibility policy can be found on our website
www.zeb.eu/csr.
We would like to thank you for your trust and excellent
cooperation in the past years. We will continue to assist
you as a partner for change in 2016 and we look forward
to supporting your individual change processes and to
jointly meeting the challenges of the financial world.
Dr. Patrick Tegeder
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56
PARTNERS
ZEB.PARTNERS
Dr. Thomas Abel
Dr. Thomas Bannert
Christoph Bundschu
Martin Danne
Stephan Dreyer
Dr. André Ehlerding
Dr. Jens Eickbusch
Thomas Engeln
Carola Ernst
Wolfgang Essing
Stefan Geipel
Simon Grimm
Christian Große
Dr. Thomas Hartschuh
Dr. Christian Heitmann
Thorsten Helbig
Michael Herkert
Jürgen Hofner
Dr. Dirk Holländer
Ulrich Hoyer
Dr. Sven Jansen
Stefan Kaufmann
Dieter Kipp
Horst Kleinlein
Thomas O. Klimpke
Werner Konezny
Sven Krämer
Jens Kuttig
Christian Legény
Dr. Katrin Lumma
Dr. Wilhelm Menninghaus
Dr. Primož Perc
Dr. Andreas Rinker
Prof. Dr. Bernd Rolfes
Heinz Rubin
Axel Oliver Sarnitz
Dr. Olaf Scheer
Andreas Schick
Christian Schiele
Prof. em. Dr. Dres. h. c. Henner Schierenbeck
Wolfgang Schlaffer
Dr. Michaela Schneider
Natalie Schneider
Johannes Stengl
Heinz-Gerd Stickling
Dr. Jens Sträter
Dr. Klaus Strenge
Dr. Patrick Tegeder
Dr. Markus Thiesmeyer
Dr. Stefan Trost
Dr. Matthias Uebing
Dr. Markus Wilpert
Rainer Windler
Dr. Carsten Wittrock
Dr. Ralph zur Brügge
18
1 Business Model
BERNER KANTONALBANK
Reviewing the status of digital transformation
Digitalization
2.
With more than 500,000 private and corporate customers in the cantons of Bern and Solothurn and total assets
of 28 billion Swiss francs, Berner Kantonalbank (BEKB)
ranks among the largest Swiss banks. BEKB recognized
the importance of digital communication channels early
on and already set up an own online brokerage at the
end of the 1990s. Since then, its range of services has
been gradually expanded. Today, BEKB has established
the “Money-net” market presence, offering online services for all basic areas of need. BEKB and zeb have
exchanged views and ideas and have consequently—despite the bank’s pioneering work—identified two major
digitalization challenges.
Firstly, online and offline channels are currently merging. Customers expect a broad and linked offering of
channels and media for receiving information, advisory
or banking services and for accommodating service
requests. Clearly delimiting the online from the offline
world will no longer lead to success. Instead, banks
should link these two offers to make use of the complementary advantages of the different channels—to the
benefit of the customers, but also to the benefit of the
bank. BEKB’s previous dual setup, characterized by the
parallel operation of branch sales and the online banking approach using Money-net, was not able to fully
meet this requirement.
Secondly, similarly to numerous other banks, BEKB did
not have a central entity to coordinate and manage digital transformation. BEKB had indeed already initiated
various measures with regard to digitalization, but it was
the relevant business departments and functions that
were responsible for the individual implementations.
Due to this heterogeneity, the top management was
hardly able to assess whether the initiated measures in
their entirety were sufficient to successfully design the
bank’s digital change.
As a result of these two challenges, BEKB’s management
board asked zeb to check the status of their digitalization strategy as part of a compact review and to suggest
measures for closing any identified gaps.
1.
Systematic: the implementation
The project started with a market analysis, where the
Swiss zeb team worked together with the zeb.research
experts from Münster, Germany, to determine the digital
success factors and trends in the Swiss and international markets. The resulting digital requirements specification for BEKB featured ten fields of action (see Fig. 1).
The team analyzed the as-is situation at BEKB by conducting structured interviews with Sales, Online Bank,
Marketing and ORG/IT and by evaluating the documentation provided by the bank. The comparison of these
results with the previously defined target requirements
was used to derive indications as to where BEKB has
to improve its digital road map. The project team validated and specified this initial assessment in workshops
with involved business departments and members of the
management board.
01
STRATEGY
to be oriented towards
“digital” and “mobile first”
EXISTING BUSINESS MODEL
02
PRODUCTS
to be simplified and redesigned
03
MARKETING
to be customized and made “social”
04
SALES
CHANNELS
to be integrated and
oriented towards “mobile”
05
PROCESSES
to be standardized and automated
NEW BUSINESS MODELS
06
EXISTING
SOLUTIONS
to be drafted
07
NEW BUSINESS
SEGMENTS
to be developed as profit pools
08
ORGANIZATION
of innovations
and agile working methods
09
DATA VARIETY
to be prepared for targeted use
10
HUMAN
RESOURCES
develop skills and motivation
Figure 1: Digital requirements specification for BEKB with ten
fields of action
Effective: the results
The project team demonstrated that BEKB had already
initiated targeted activities in all relevant fields of action.
At the same time, the individual areas met the defined
requirements of a 2020 objective quite differently. The
measures recorded in the digital road map which aimed
at expanding the online and offline channels and access points, at enhancing the range of advisory services
(e-services and e-advice) and the marketing and sales
processes, seemed appropriate to fulfill the market requirements at the customer interface. In contrast, the
measures for an end-to-end optimization of processes
and for a systematic data analysis, for example, were
not sufficiently developed in the digital road map. Moreover, the needs for action in the fields of strategy and
organization already assumed at the start of the project
were confirmed.
zeb developed three proposals for the future strategic
positioning of “Money-net” to solve the strategic need
for coordination between the Money-net online bank and
the branches’ online banking services. At the bottom of
each proposal is the intention to make the innovations
developed for Money-net available for the customers of
the branches as quickly as possible. The decision about
the proposals for a future positioning will be subject to
the superordinate review and enhancement of the sales
organization.
21
1 Business Model
“In the financial sector,
the digitalization megatrend still has considerable
opportunities in store—
here, we have to lead the
way instead of simply
following the trend.”
Ulrich Hoyer
3.
The management board accepted the project team’s
recommendation to set up an own “Digital Transformation” unit that assumes responsibility for the future
organization of BEKB’s digitalization. This new unit will
be responsible for and coordinate the analysis, planning
and implementation of BEKB’s digital transformation
and also promote the knowledge and understanding of
digitalization on all levels of the bank. The digital tasks
and resources previously located in (Online) Marketing,
Communication and ORG/IT will be moved to the new
unit. The head of the new unit will directly report to a
member of the management board. This way, the bank
joins its forces and enables better interdisciplinary coordination. The new unit will develop solutions for digital
interaction and services as well as for digital banking.
Future-proof: outlook and conclusion
Thanks to the project, BEKB was able to expand its digital road map in decisive aspects and thus to meet the
market standards of the 2020 objective and to gain a
competitive advantage. Due to the joined forces in the
new “Digital Transformation” unit, in particular, the entire
bank pays more attention to digitalization. As a result,
digital projects are promoted more efficiently and purposefully.
Hanspeter Rüfenacht
Christoph Meinen
Chairman of the Management Board
Head of Digital Transformation
BEKB|BCBEBEKB|BCBE
Heinz Rubin
Wieland Weinrich
Managing Partner
Senior Manager
zeb.Switzerlandzeb
www.zeb.eu
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22
1 Business Model
THE ASSOCIATION OF GERMAN BANKS
Management audit
1.
The Association of German Banks in Berlin (German:
Bundesverband deutscher Banken), with approximately
160 employees, is one of the leading associations of
the credit services sector in Germany. Its members include 210 private banks and eleven state associations.
Below the three-person leading management board, a
management team of executives and divisional managers is responsible for cooperations between the credit
industry, politics, legislation and society. The team is
also responsible for developing the banking expertise of
staff as well as for internal management and employee leadership. Besides operating the deposit guarantee
fund for private banks, the conciliation proceedings for
the private credit industry belongs to the core tasks of
the association.
At the start of 2015, the leading management board of
the Association announced a tender for the conceptual
design and execution of a management audit in order
to plan the long-term personnel development and succession. The aim of the project was to determine the
suitability and potential of the management team to
complete future tasks. An academically sound process
for diagnosing suitability was selected for the audit. This
process combines the biography, characteristic and simulation-oriented instruments through multiple modes.
The management audit was conducted in four phases
(see Fig. 1):
Management
audit
In phase 1, zeb and the leading management board defined the criteria that were to be checked in the management audit. The requirements profile that this created
included approx. 30 target criteria in four dimensions:
specialist competence, method competence, social/
leadership competence and personality competence.
By following the multimodal logic, the project team
constructed the biography, characteristic and simulation-oriented elements for the management audit during
the subsequent conceptual design (phase 2). To map
the characteristic-oriented approach, the project group
decided on the business-focused inventory of personality (BIP), a proven, web-based personality test. For determining the biography and simulation-oriented data, zeb
created a structured interview guideline and an associated evaluation matrix.
This gave the execution (phase 3) two significant elements: the personality test (BIP) and the subsequent
structured interviews. Besides these elements, the third
phase involved creating differentiated assessments of
the management audit participants. The assessments
included a comprehensive strengths and weaknesses
profile, a comparison between the BIP and the interview,
a suitability determination and, finally, remarks for further development.
2015
4
3
2
1
Result presentation and feedback
Execution and evaluation
Conceptual design of
management audit
Initialization and
requirements profile
Figure 1: Process model for management audit
The presentation of results in phase 4 was intended
for comparing the expectations and experiences and
for discussing the assessments. Here it was important
to find the right tone so as to take the cultural and linguistic customs of the organization into account. The
assessors then used the final assessment to lead detailed feedback meetings with all management audit
participants. The meetings were used to commend the
major strengths, identified fields for development and
discussed possible perspectives.
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25
1 Business Model
Carsten Kuck, Dr. Matthias Uebing
2.
3.
In all phases of the management audit, substantial result types about personnel management were generated:
•a requirements profile for four dimensions and approx.
thirty criteria
•a standardized guideline for the structured interview
with a nine-point evaluation scale
•individual assessments with a strengths and weak nesses profile, a statement on suitability, develop ment recommendations and a BIP profile
•an aggregated result profile for the entire manage ment audit
Dr. Michael Kemmer
General Manager
Bundesverband deutscher
Banken e. V. Future-proof: outlook and conclusion
The management audit at the Association showed that
a solid methodological structure leads to compact
suitability diagnostic processes, that in turn generate
a high level of acceptance by participants and valid
suitability and potential statements. The Association
received a differentiated profile of the members of its
management team. This included strengths and weaknesses profiles and graded suitability findings as well as
recommendations for further development. The management audit served as a basis for the strategic personnel
development and thus contributes significantly to the
personnel sustainability of the association.
Dr. Dirk Franke
Managing Director Internal Affairs
Bundesverband deutscher
Banken e. V.
www.zeb.eu
Dr. Olaf Scheer
Dr. Viktor Lau
Director
Senior Manager
zebzeb
26
27
1 Business Model
LBS WESTDEUTSCHE LANDESBAUSPARKASSE
Repositioning sales operations in the low interest rate
environment
Stefan Steinhoff, Maxim Okhotnikov
1.
Due to the ongoing low interest rate phase in the financial sector and stricter regulatory requirements, building
societies are facing significant pressure on their profitability. To be able to remain profitable in this challenging
environment for the long term, the LBS Westdeutsche
Landesbausparkasse (LBS West)—the leading building
society in North Rhine-Westphalia and Bremen—drafted
the strategic target “LBS 2020”, which, among other topics, stipulates a far-reaching reorganization and optimization of the sales function. As part of this realignment,
LBS West and zeb overhauled the sales organization
and remuneration structure and found a better way to
integrate overall bank and sales management with each
other. By lowering acquisition costs, the project primarily
contributes to the total LBS West cost reduction targets
without significantly reducing its sales performance.
zeb needed to balance many diverse and often conflicting objectives during the project (see Fig. 1), because
LBS West has two sales channels: the savings banks within their operating region and LBS West’s own field staff,
which consists of self-employed sales agents with their
own management structure and commission-based remuneration.
zeb firstly assessed how all affected parties regard
the initial situation. The team held expert discussions
with savings bank employees and field staff about the
strengths and weaknesses of the current organization.
Additionally, they organized quantitative analyses and
regular workshops with sales employees of LBS West.
In order to identify the best possible sales structure,
the project team then described all potential organizational forms. Using the qualitative criteria that had been
developed together, the team then consolidated these
options and determined their economic effects. Further,
zeb—together with LBS West—defined modified levels
and components for the remuneration of the modified
field staff organization. This new scheme allows high performers in sales to earn a reasonable income while also
reducing acquisition costs for LBS West.
After the conceptual design of the new sales function,
the interface between sales management and total bank
management was restructured. For this purpose, the project team defined management parameters and potential control levers for sales management and evaluated
their effects. At the same time, a detailed control process was described for the cooperation between sales
management and total bank management. zeb ensured
that the new remuneration system effectively supports
the management goals.
29
1 Business Model
3.
Reducing costs
Paying field staff appropriately
Reducing number of sales agents
Maintaining sales performance
Retaining self-employed field staff
Strengthening savings bank sales
Establishing a strict future solution
Ensuring pragmatic feasibility
Figure 1: Aims for a new sales model
LBS West’s management board immediately agreed to
the recommended new organization of sales and initiated its implementation.
The target image stipulates a continuance of the dual
sales channels through savings banks and own field
staff, but also emphasizes cooperation between the two
sales channels. With this in mind, the role of integrated
Regional Manager was created; despite being a member of the field staff, the relevant savings bank can opt
to use this Regional Manager as an integrated part of
its own sales organization to cover the market together
with bank employees. This structure brings a win-win-win
situation for the savings bank, the building society and
the field staff. Furthermore, the new structure still allows
flexible reactions to future market changes.
With the repositioning of the sales function, sales management has become much better integrated in total
bank management and remuneration has become more
strictly aligned to sales targets. This allows the necessary cost reductions for LBS West to be achieved without
suffering major drops in sales performance and new business.
With the described changes, LBS West is reacting twofold to the challenges of the low interest rate environment: falling sales costs increase the ability for the
building society to act in this environment, while the retained sales performance allows for future growth.
The new sales structure and the optimized remuneration
of field staff are already being prepared for implementation. Once the technical preparations have been completed, the sales function will be reorganized by the end
of the first quarter of 2016.
Beyond this, the management levels within the field staff
organization were also streamlined, thereby creating the
necessary scope to attractively remunerate the Regional
Managers, who are key to the sales performance. Thanks
to the positive effects for the operating sales force and
the transparency of changes made, the measures were
very well received.
-
Jörg Münning
Uwe Körbi
Chairman of the Board
Member of the Board
LBS Westdeutsche LBS Westdeutsche
LandesbausparkasseLandesbausparkasse
Thomas O. Klimpke
René Korn
Partner
Senior Manager
zebzeb
www.zeb.eu
2.
30
1 Business Model
MEDIOLANUM BANKING GROUP
Software enables strategy
1.
Mediolanum Banking Group is one of the leading banks
in Italy when it comes to personal banking. Its business
model and strategy are based on personal advisors,
called Family Banker ® , who establish a lasting and personal customer relationship, ideally covering all of the
customers’ financial needs. Bankhaus August Lenz—a
German private bank that belongs to Mediolanum Banking Group—adapts Mediolanum’s successful approach
for the German market and plans for significant growth
in the upcoming years. Mediolanum Banking Group and
Bankhaus Lenz, together with zeb, addressed the question to which extent the currently used IT architecture
and systems enable or limit the implementation of the
growth strategy.
Support Family Banker®
The assessment started with a joint definition of the key
requirements to be met throughout the project: What
does Bankhaus Lenz need to successfully implement its
growth strategy? An overview can be found in Figure 1.
The first two items are considered the main levers for
enabling growth. To meet these requirements, Bankhaus
Lenz has already started three major specific projects
targeting at its online platforms.
Following the approach to cover all relevant financial
needs of its customers, Bankhaus Lenz also redefined
its target product portfolio. Since the front-end integration of the product portfolio is evidently covered by
the “frontline” systems, the project also looked at endto-end processes and related back-office systems. For
this purpose, the project team created use cases for core
processes, e.g. account opening: The team assessed
their current level of integration and efficiency and estimated the robustness of the processes and systems
while considering the expected growth and hence higher
quantities and a higher number of transactions.
At the same time, the project team applied a field-tested architecture framework to conduct a comprehensive
assessment of the overall landscape, which consists of
three main applications and about 30 satellites. Besides
the functional requirements, the team also assessed the
current level of integration based on the framework and
identified potential needs for improvement.
Optimize customer experience
Growth
Close gaps in product portfolio
Handle increasing volumes
Align with supervisory and group requirements
Figure 1: Key requirements for a successful growth strategy
2.
First of all, by applying the previously mentioned standardized framework to assess the overall IT architecture,
the team was able to create a common understanding of
the status quo. Throughout the project, this turned out
to be a solid and common ground to start from for any
discussion about business needs and required changes.
It also provided an understanding of the interconnectedness of front-end and back-end systems and the surrounding satellites.
The analysis of the major initiatives currently under development clearly confirmed that they adequately cover
the specific requirements of Bankhaus Lenz.
The planned increase of volumes and transactions clearly suggests to broaden the focus and to include measures that target at a better process efficiency. The proposed measures include a higher level of automation, e.g.
for credit reports, KYC checks, etc., digital archiving and
improved integration of the three main systems to minimize duplicate data entries and manual data revision.
Following a prioritization workshop, all measures were
finally integrated into a single road map that serves as
a master plan for the next two years and provides transparency about the dependencies among the different
projects, but also about the resources needed to accomplish the overall program in time.
33
1 Business Model
“For us at zeb, inno-
Dr. Andreas Rinker
3.
As expected, the assessment revealed that for creating
and maintaining the specific value proposition of Mediolanum Banking Group/Bankhaus Lenz, innovative
elements have to be incorporated to create an extraordinary customer (and also advisor) experience—with
software evidently acting as an enabler for strategy
implementation.
Mirko Siepmann
Spokesman of the
Management Board Bankhaus August Lenz & Co. AG
Meanwhile, the project results confirm the path for Bankhaus Lenz. The transparency, the clear priorities and the
detailed understanding of interdependencies provide
the program management with the relevant information
to ensure a smooth and efficient implementation.
Vincenzo Carusillo
Head of Operations, IT, Controlling
and Quality Management
Bankhaus August Lenz & Co. AG
Helge Böschenbröker
Mauro Viotto
Managing Director
Senior Advisor
zeb.Italyzeb
www.zeb.eu
vation and change are
the basis for sustainable
growth and consistent
customer orientation.”
ZEB|COLLABORATIVE
ZEB.OFFICE BERLIN
zeb stands for committed and respectful collaboration—
both in house and at our clients’. This is why our project
work focuses on trust and honesty and how we achieve
the best results. Altogether committed to your company’s
success.
Dr. Farhood Torabian, Janine Eulert, Astrid Milde
36
1 Business Model
MÜNCHNER BANK
Securing business and shaping the future in a digital era
1.
The new management team of Münchner Bank aims at
making the bank stronger and more stable for the future.
On that note, the new chairman of the board—together
with the new head of sales and the head of back office
processing—launched a project for strategy development
with support from zeb. The project relies particularly on
the involvement of staff.
At the start of the project, zeb conducted future dialogs
with the supervisory board, management board, staff
council, management team and employees. In addition, approx. 40% of all representatives were involved
in representative dialogs. Münchner Bank’s outlook was
then also enhanced through zeb analyses regarding
economic background, market environment and market
potentials. Based on this, the management board defined the new strategic cornerstones in commitment with
the supervisory board. The strategy was then developed
further as part of a subsequent future workshop with the
dual lines of action “Securing business” and “Shaping
the future” (see Fig. 1).
Line of action: Securing business
The bank topics to be optimized—sales to private customers and corporate customers, sales management,
lending and process management, personnel management and structural organization—were specified as part
of a workshop series. All employees were invited to take
part in the development and 70 participants from the
workforce showed great dedication in shaping the future
strategy of Münchner Bank.
Line of action: Shaping the future
The topics of “Leadership and culture” and “Digitalization” addressed the entire team’s willingness for and
ability to change in the context of new life situations. For
this, the project team conducted a target-actual analysis
on the topic of “Leadership and culture” by means of value discussions with the wide involvement of executives
and employees. Based on the cornerstones for the digitalization strategy developed by the management board,
fundamental awareness for dealing with changed life
situations through additional digitalization was raised.
An initial group of almost 30 participants launched an
intensive examination into the challenges and the derivation of first measures as part of a so-called “digital live
workshop”. Subsequently, the participants organized a
short series of training sessions for their colleagues and
a digitalization show with the aim of informing all employees about the benefits of digitalization.
2.
FUTURE WORKSHOP
Securing business
OPTIMIZATION AND IMPLEMENTATION
OF EXPERT TOPICS
•PC sales, CC sales
•Sales management
•Credit and process management
•Personnel management
•Organizational setup
+
Shaping the future
For the project objective “Securing business”, the project
team identified approx. 30 fields of action, reinforced
them with target images, prioritized them and transferred them to an implementation plan. Beyond this, numerous quick wins could be realized within a short time.
Furthermore, based on the adjusted strategic alignment,
a newly designed structural organization was implemented by January 1, 2016.
SHAPING “DIGITAL AND CHANGE”
•Culture and leadership in the context of the cooperative value system
•Digitalization / changed life situations
Figure 1: Future workshop's lines of action
38
39
1 Business Model
“Members can only
3.
For the “Shaping the future” line of action, major needs
for action for promoting the change readiness and ability
were established about the topic “Leadership and culture” in the context of the cooperative value system. On
the topic of digitalization, the project team first created a
high awareness and implementation dynamic for further
systematic orientation. As a specific first measure, customer-relevant content will be developed, initially in a
construction lending blog. This involves making it easier
to find Münchner Bank online through enhanced social
media activities and the establishment of a pioneering
internal communications structure (“Enterprise 2.0”).
Wilfried Gerling
Chairman of the Board
Münchner Bank eG
In 2016, Münchner Bank will continue to put members
and customers in the spotlight and systematically focus
all activities to their needs. This demands an agile project procedure, thinking outside of the box, creativity, a
trial-and-error mentality and that all participants can
work independently. The aim is to realize the bank’s vision: “Success for Münchner Bank—first choice for our
members and customers!”
Sandra Bindler
Member of the Board
Münchner Bank eG
www.zeb.eu
Stephan Dreyer
Malte Flieger
Partner
Senior Manager
zebzeb
be made aware of and
motivated for a systematically digital orientation
through dialog at eye
level.”
Wolfgang Becher
40
1 Business Model
SANFELICE 1893
Pricing management: enhancing the re-pricing process
1.
SanFelice 1893 is an Italian popular bank (banca popolare) near Modena, which contributes to the economic
development of the environment where it is “rooted”.
The banking system recently faced several changes that
created imbalances in the income statement of products
offered by the bank. Consequently, SanFelice expressed
the need to adjust the pricing of core products so as to
keep a stable level of competition, while maintaining an
adequate fairness profile in terms of customer relationships (as well as an overall level of compliance). zeb
supported SanFelice in managing the pricing strategies,
thus allowing the bank to sustainably optimize its product prices.
Pricing
management
strategies
The analysis of the overall regulatory framework was the
starting point to properly implement a new process for
re-pricing products already purchased by customers and
not subject to an expiry date. In fact, banking rules in
Italy allow the re-pricing of these products only to cover economic losses due to external events (“exogenous
factors”) that were not predictable at the time of the purchase (e.g. disruptive changes in the economic environment, regulatory changes, etc.).
01
Conduct
as-is gap
analysis
04
After this first identification of guidelines, the project
team set up a four-stage support (see Fig. 1).
Determine
new pricing
02
Define
new pricing
process
03
Assess potential
imbalances
Figure 1: Re-pricing management process
1. Conduct an as-is gap analysis
Analyze the existing re-pricing management process to
identify any possible operational gaps in the guidelines
and best practices derived from rules and supervisory
authority practices.
2. Design a new pricing management process
Once the involved stakeholders have been identified,
define related roles, responsibilities and interactions
and set the key control points of the process.
3. Identify potential causes of economic imbalances
Enrico Aresu
Assess imbalances caused by exogenous factors and the
related economic impact for the bank (so-called “internal
impact”). The analysis focuses, for instance, on evaluating the increase of operating costs due to external causes (e.g. changes affecting supplying markets), on credit
score deterioration and on the effect of a systemic decrease of interest rates.
4. Define new price levels
Analyze the previously identified figures in detail in order
to identify the impact for each customer relationship/
cluster. To define the best rebalancing action, find a new
pricing mix that, in consistency with market dynamics,
optimizes the trade-off between economic and competitive needs, thus balancing the risk of losing clients.
Well-designed analytical tools are a must, both to quantify and solve the imbalance on a customer-by-customer basis and to ensure a dynamic adaptation to market
conditions, thereby enabling the replicability of such adjustments. Newly-defined price levels are then applied
to the customer base in order to allow the economic rebalancing of each product line.
42
43
1 Business Model
Sebastian Kreuschner, Tobias Müller
The main result is the improvement of the re-pricing
process, which allows to review pricing strategies in
compliance with regulatory guidelines—with low operational and reputational risks for the bank. Moreover,
this approach allows the bank to early detect and track
causes that might be eligible for an adjustment through
re-pricing activities, thus enabling a more efficient budget management. Last, but not least, the newly-defined
price levels have restored the initial earnings-to-cost ratio of the existing product lines, thus enabling the bank
to continue offering products that guarantee a fair economic return, irrespective of external events that affect
the overall economic sustainability.
Vittorio Belloi
Deputy Director General
SanFelice 1893
Banca Popolare S.C.P.A
3.
Thanks to zeb’s support, SanFelice succeeded in defining an effective practice to guarantee and defend a
correct level of margin for core products, while at the
same time reinforcing its level of regulatory compliance.
The “no black box” approach enabled the bank to acquire the required expertise to autonomously implement
further re-pricing operations—a considerable advantage
that allows the bank to gain the right cultural and technical tools to optimize its offering and pricing strategy for
its customers.
Paolo Lanzoni Head of Planning and Control Unit
SanFelice 1893
Banca Popolare S.C.P.A
Helge Böschenbröker
Antonino Gueli
Managing Director
Managing Director zeb.Italyzeb.Italy
www.zeb.eu
2.
ZEB|INNOVATIVE
At zeb, we do not blindly follow beaten
tracks, but instead we use our innovative
strength, conceptual visions and clientoriented mindset to create trail-blazing
solutions. We think ahead. And always keep
an eye on the future.
ZE
OF
B.
F IC
EM
UN
IC
H
Dr. Klaus Strenge
46
2 Operating Model
CATELLA AB
Outsourcing the risk management function
1.
Catella is a financial advisor and asset manager with indepth knowledge of property, fixed income and equities.
The group has a leading position in the property sector
and a strong local presence in Europe, with some 500
employees in 12 countries. The Catella group encompasses 30 operating subsidiaries, including a Luxembourg-based bank as well as German and Swedish fund
companies.
In autumn 2014, Catella AB outsourced its group risk
management function to zeb. This function is now independent from the business and provides support and expertise in risk management matters. It also assists with,
informs about and implements new financial regulations
from European and Swedish authorities.
Burkhard Ernst Käser
In Catella AB’s group of companies, the internal control system is based on the principle of three lines of
defense. In the first line of defense, every employee is
responsible for managing risks in their operations and
processes and for complying with internal and external
regulations. This means that all service and personnel
service providers are in charge of identifying, analyzing,
and evaluating risks that can arise within their own area
of responsibility.
As a third line of defense, the internal auditing function
uses a risk-based approach to report to the organization’s board and senior management on how effective
the organization assesses and manages its risks, including the way in which the first and second line of defense
operate.
In the second line of defense, the Risk Manager is responsible for establishing policies and guidelines on
risk management. The function also has to translate the
board’s risk management intentions into instructions,
processes and procedures to be implemented in the
different business units. In addition, the Risk Manager
develops and maintains the company’s framework and
provides guidance and support to those business areas
implementing it. Moreover, they are responsible for consolidating and monitoring risks. The function should be
embedded in, yet independent from, business operations.
The risk function has to regularly improve the risk environment by quantifying and mitigating risks and, of
course, provide the management with risk reporting. It
conducts regular risk reviews to identify risks and support the management in risk mitigation processes. The
Risk Manager conducts follow-up activities regarding the
resolution of risk issues and the execution of any action
plans put in place in order to manage identified risks.
Besides these daily tasks, the Risk Manager from zeb
works on:
•the conceptual design of risk reports to be provided to
the Chief Executive Officer and the Board of Directors
•the development of risk assessment as well as self assessment methods and key risk indicators for key
functions and group level
•coordinating and prioritizing the management of inter nal control weaknesses identified internally or by (in ternal and external) audit reports
•the business contingency plan and its testing
•the disaster and recovery plan
•capital requirement calculations
•liquidity coverage management
•a risk analysis in the remuneration system
at group level
•data management and information security
•regular risk training for board, management and key
functions
•ensuring that risk-related information in annual re ports and websites are in line with requirements for
external information
Outsourcing
the risk
management
function
48
2.
3.
zeb assists Catella AB in improving the internal control environment. By outsourcing the risk management, Catella
AB makes sure that it is independent from the business
decisions of this function. The external risk function forms
an integral part of Catella AB’s internal control structure.
Marcus Holmstrand
Chief Financial Officer
Catella AB
www.zeb.eu
49
2 Operating Model
The activities performed by the control function are
an important part of the business and are required to
achieve the group’s strategic objectives. By outsourcing
the risk function, Catella makes sure that this function is
independent from the operation and that it is manned
with experts who cover all requirements and risks that
have an impact on Catella. Numerous regulatory changes and increased market complexity were important factors for outsourcing to zeb as it is more important than
ever to have access to a group of different experts.
Jonas Schödin Managing Director
zeb.Nordics
“By outsourcing
the risk management
function to the zeb experts,
Catella AB makes sure that
the risk function is clearly
separated from business
operations.” Dr. Stefan Trost
50
2 Operating Model
DEUTSCHE BÖRSE GROUP
Process review: implementing regulatory
requirements in a DAX-listed company
1.
With more than 4,500 employees and an international
presence in all major financial centers, Deutsche Börse
Group is one of the world’s largest exchange organizations. Thus, the DAX-listed company largely contributes
to the smooth operation of the international financial
markets with its services, processes and systems. As a
prerequisite, Deutsche Börse Group has to achieve the
highest level of legal and regulatory compliance. This
leads to a particular area of potential conflicts between
the efficiency-oriented demand for standardization and
the partly inconsistent mesh of national and international standards.
Against this background, the company set up a project
for reviewing the processes within Financial Accounting and Controlling, Human Resources and Purchasing
across organizations in Germany, Luxembourg, Ireland,
Czech Republic and Singapore in terms of compliance
with national and international legal and regulatory requirements.
zeb was asked to perform this process review, in detail
identifying how the processes cover the relevant legal
and regulatory requirements. A second goal was to
leverage harmonization potentials and to promote international process standardization.
First of all, the project team set up three subprojects with
corresponding experts to cover the requirements from
the three relevant business departments. A comprehensive project management was established to ensure a
cross-departmental uniform procedure and a consistent
interaction among the different department interfaces.
In a first project step, the three work streams specified
the documentation standards to ensure the further
usability of the project results in addition to cross-departmental uniformity. Afterwards, the team developed
process maps together with the experts of the involved
departments. This led to roughly 500 international and
national processes for the Finance area alone. For HR,
the team defined around 100 national and more than
100 international processes that needed to be adapted to local circumstances. In Purchasing, approximately
40 processes were identified and analyzed in the project. The project team then assessed and prioritized the
defined processes in terms of their legal and regulatory
relevance to focus on the essentials as soon as possible.
In doing so, the team also considered the importance of
the individual processes regarding their coverage in the
internal control system.
In expert workshops within the relevant departments, the
as-is status of the resulting prioritized processes was analyzed and documented in process flow charts to verify
their regulatory compliance and to identify optimization
potentials. Further expert workshops were conducted to
design the target processes on national and international levels. To promote the harmonization of processes on
an international level, the team specified strict criteria
for the common procedure that limited deviations from
the standard.
The as-is analysis of processes with a high priority was at
the center of attention of the 2015 project work in Financial Accounting and Controlling, thus ensuring a harmonization and implementation of required measures for
2016 according to the described procedure.
The internal control system (ICS) of the involved departments—key for developing legally- and regulatory-compliant process descriptions—was described in detail,
focusing, among others, on harmonized control and audit-proof traceability.
In order to ensure that the documented target processes are sustainably up-to-date, the project team finally
developed an interdisciplinary process for continuous
monitoring and maintenance. The project concluded
with a description of and agreement on implementation
planning.
Katharina Hreczuch, Corinna Kussin
Process
review
52
2 Operating Model
“Global finance companies are coming into the conflict between
standardization and internationally inconsistent standards more
than ever before. Compliance and regulatory efficiency are becoming
decisive competitive advantages!” Dr. André Ehlerding
2.
3.
At the end of the project, the project team provided
Deutsche Börse Group with three result types for the involved departments:
Besides the department-specific process maps, zeb
documented all prioritized processes including the ICS
control points in the BIZAGI modeling software.
1.A structured process overview through process maps
2.Processes that have been internationally harmonized
to the greatest possible extent
3.A detailed description of all relevant control points of
the internal control system
Based on this documentation, it was finally possible to
make the departmental processes as compliant and audit-proof as possible according to the high requirements
for DAX-listed companies.
Matthias Preuß
Head of Department
Deutsche Börse AG
Jens Hachmeister
Managing Director
Deutsche Börse AG
Marco Steeg
Managing Director
Deutsche Börse AG
Christian von Schirach
Senior Manager
zeb
www.zeb.eu
Natalie Schneider
Dr. Jana Wagner
Partner
Senior Manager
zebzeb
53
54
2 Operating Model
FALCON PRIVATE BANK
FinSA/MiFID II: defining the product strategy
and gap analysis
1.
With MiFID II (Markets in Financial Instruments Directive), the European Commission governs the provision
and sales of investment services to strengthen the protection of investors and to make capital markets more
transparent. MiFID II will have to be applied within the
entire EU as of January 2018. In turn, the Swiss Federal
Department of Finance is developing the FinSA (Financial Services Act, FIDLEG), which also aims at enforcing
the protection of investors and at granting Swiss financial services providers access to the European market
under MiFID II. The transposition into law is expected for
early 2018.
Whereas both regulations lead to more comprehensive
audit, information, and documentation obligations,
some of the rules also directly affect the business model.
Investment firms have to counteract this complexity and
to find a new strategic position within the regulated market environment.
Therefore, Falcon Private Bank and zeb redefined the
bank’s product strategy and portfolio and its advisory
process taking into account MiFID II and FinSA.
The project was divided into two subprojects: In the first
subproject, zeb’s project team supported the bank in
the regulatory validation of its product portfolio and the
related advisory process, introduced best practices and
advised with strategic decision-making. The jointly developed solution clearly differentiates various services
for different customer needs, whereas the related advisory process considers both regulatory requirements
and applicability in customer services and sales. The
second subproject consisted of a gap analysis for identifying further fields of action. The zeb project team assisted the bank in designing the analysis and in consolidating the consequently identified solution approaches for
a structured implementation of regulatory requirements.
2.
FinSA
MiFID II
With the newly developed product strategy and the related advisory process, Falcon Private Bank is able to continue its successful and regulatory-compliant offering of
investment services even after the regulations take effect. In addition, the gap analysis results allow for a successful implementation of the regulatory requirements.
The project results can be summarized as follows:
Axel Oliver Sarnitz
•development of a detailed, regulatory-validated
product strategy complemented by best practices
•definition and refinement of the advisory process
•identification of the major fields of action and defini tion of suitable solutions for a successful implemen tation of MiFID II and FinSA requirements
56
3.
“FinSA and MiFID II
require an early and
intense examination
of product and service
portfolios.”
For Falcon Private Bank, it was essential to perform a
detailed examination of its product portfolio and service
commitment to remain successful in the market even
under FinSA and MiFID II. The bank seized this opportunity and clearly defined its business model and product
strategy. Today, it benefits from a process model that
can be used to align the service and product portfolio to
future requirements. In a next step, the bank is going to
integrate the developed solution options as guidelines
and—with the help of IT—also in its business processes.
Tobias Unger
Chief Operating Officer
Falcon Private Bank
Yannick Kaulitz
Project Manager
Falcon Private Bank
Heinz Rubin
Sven Kuonen
Managing Partner
Manager
zeb.Switzerlandzeb
www.zeb.eu
57
2 Operating Model
Wolfgang Schlaffer
ZEB|FLEXIBLE
At zeb, every employee contributes their individual strategy
and implementation expertise. Thanks to our perfectly
matched interaction, we always find the most suitable and
tailored solutions. And therefore deliver the best performance for our clients. Not just standard answers.
IC
ZEB.OFF
E MUNIC
H
Doris Zwanzger-Kutka
3 Finance & Risk Model
BANK OF CHINA
Implementing zeb.control—simulation and planning tool
1.
Bank of China has been active in Germany since 1989
and is the first of the five large Chinese national banks to
operate in the country. As well as its main headquarters
in Frankfurt am Main, Bank of China has subsidiaries
in Hamburg, Düsseldorf, Berlin and Munich. With a focus on euro clearing, import and export financing and
syndicated lending, the bank has grown considerably in
recent years. Today, the bank has more than EUR 10 billion in total assets. As well as this, the Frankfurt office is
the central clearing house for trading CNY in continental
Europe.
Besides growth and rising complexity, stricter regulatory
requirements are increasing the required number of KPIs
to be monitored in bank management and their interdependencies. In order to manage this complexity, the
Bank of China decided to implement a comprehensive
simulation and planning tool especially for P&L and capital planning.
Andrea Krüger
The described project was based on a conceptual design
project in which the project team defined the functional
requirement framework and the fundamental KPI framework. This was then used to introduce the simulation
and planning tool from the zeb.control software. The
implementation occurred in two phases: the technical
implementation and the development and realization of
relevant scenarios and employee training.
In the first phase, zeb analyzed the existing data together
with Bank of China in order to ensure the availability of
required data and to define the data supply. Based on
this, zeb then conducted the technical implementation
including the installation and realization of technical interfaces. All management KPIs that had been defined by
the bank were taken into account so that the tool was
basically implemented by the end of the first phase.
Volume
60
Current
business structure
•Volume
•Repayment/maturity structures
•Interest rate
•Margin
+
Transaction
2015
2016
2017
...
New business
Portfolio business
Time
Plan scenarios
•Interest rate and currency scenario
•Balance sheet structure scenario
•P&L scenario
•Repricing scenario
KPIs
Profitability (P&L)
Balance sheet structure
Capital adequacy
Liquidity situation
Risk/return
Figure 1: Relationship between existing information and defined scenarios
2.
In several joint workshops during the second phase,
the project team developed the relevant parameters
and scenarios and implemented them in the tool. This
involved general information such as about maturities
in new business, planned margins and margin developments to be simulated, expected RWA weightings of
individual products and various scenarios for development of interest rates, currencies and balance sheets
(for information about the relationship between existing
information and the defined scenarios, see Fig. 1). In
addition, zeb trained the bank employees in how to operate the tool so that they can soon use it independently.
Since completion of the project, Bank of China now has
a comprehensive simulation and planning tool for regular use. This considerably improves the quality and efficiency of analyses compared to manually maintained
Excel files, while simultaneously reducing the complexity
of data processing. The tool also offers wide-reaching
application options such as P&L and capital planning,
ad-hoc analyses and simulations of diverse KPIs by using various scenarios. The currently simulated KPIs relate
to the dimensions of profitability, profit and loss statements, balance sheet structure, capital resources and
the liquidity situation. Bank of China is now able to fulfill
external regulatory requirements and internal economic
requirements and to include all significant KPIs in bank
management decisions.
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“With zeb.control, the Bank of China has a simulation and
planning tool that provides sound information upon call for
strategic management decisions.” Dr. Thomas Hartschuh
3.
For Bank of China, implementation of the simulation and
planning tool represents a major component in the future-proof development of its bank management. Operational processes such as regular analyses and reporting
as well as planning are conducted more efficiently and
fulfill all requirements of internal auditing. In addition,
various scenarios are used to establish a sound basis
of information to assist the management board in making strategic decisions. The bank is thus addressing the
increasingly volatile market environment and making an
elementary contribution to its long-term success.
Bernd Meist
Director
Bank of China Ltd.
Dr. Geronimo Mosqueira
Senior Risk Manager
Bank of China Ltd.
www.zeb.eu
Dr. Thomas Hartschuh
Bernd Kruse
Partner
Senior Manager
zebzeb
64
GRAWE GROUP
Implementing Solvency II with zeb.control
1.
Grazer Wechselseitige Versicherung (GRAWE Group)
is an Austrian insurance company with a long-standing tradition. The group has around 4,500 employees
in 14 Central and Eastern European countries. As the
sixth-largest insurance company in Austria, it unites
countries and people as well as banks and insurances
to form a close network. GRAWE Group set up a project
to make sure that Solvency II requirements were implemented for nine insurance companies (solo) subject
to reporting obligation according to EU law. The group
process also included nine other insurance subsidiaries
from non-EU countries, a banking group and a real estate holding company.
To meet the complex business, process and data-related requirements, GRAWE Group had been looking for
a multi-tenant Solvency II software. The future solution
should also meet the following requirements, among
others: mapping of composite insurance companies,
compliance with audit requirements, integrated process
management, end-to-end process documentation in the
system, multi-user capability, role and rights management as well as multi-lingual and multi-currency capability. Realizing the long-term objective, the integrated
Solvency II solution for all three pillars, was also considered during the selection process. Following a successful trial period, zeb was asked to introduce zeb.control.
regulatory Solvency II.
2.
zeb.control.regulatory Solvency II pillar 2
The project team also specified the departments’ responsibilities regarding data supply, QRT releases and overall reporting along the process model implemented in
zeb.control. Based on the project results for GRAWE AG
Austria—being the largest and most complex entity
within the group—the second project step involved
training foreign subsidiaries in using the software and
regarding general information on Solvency II requirements. Various foreign subsidiaries will be using the
English version of zeb.control. Further localizations can
be generated by exchanging dictionary tables.
For GRAWE Group, the projection and management of
risks across a multi-year planning period is particularly important in order to meet the pillar 2 requirements.
Besides the pillar 1 view (SCR standard formula), here,
major risks are quantified by means of company-specific
procedure (pillar 2: own solvency needs, OSN). If the
board of directors submits requests—at short notice—on
the risk-related impact of business policy decisions,
they can now be quantified promptly. With the zeb.control.regulatory Solvency II pillar 2 software, GRAWE is in
the position to tackle these ORSA challenges on solo
and group level (see Fig. 1).
zeb.control.regulatory Solvency II pillars 1 and 3
In early 2014, zeb started to implement zeb.control.
regulatory Solvency II with the aim of identifying reporting-relevant data as early as possible and matching
interfaces with feeder systems. The comprehensive calculation options included in the Solvency II calculation
engine of zeb.control were included in GRAWE’s target
architecture and replaced various manual processing
steps. In addition, GRAWE and zeb developed customer-specific algorithms and included them in the software.
Insurance-companyspecific risk profile (OSN)
SCR and OSN comparison
Sensitivity analyses
QRT interfaces with
pillar 1 calculation
zeb.control.regulatory Solvency II pillar 2
Interfaces to
strategic planning
SCR and OSN
projections
Stress testing/
scenario analyses
Group ORSA
Figure 1: ORSA challenges on solo and group level
zeb.control.regulatory Solvency II
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“zeb.control is characterized by a maximum level of automation,
end-to-end compliance with audit requirements and timely software
updates for regulatory changes.” Stefan Geipel
3.
The Solvency II reports of the preparatory phase were
successfully submitted for the required EU companies
and GRAWE Group within the statutory reporting dates.
The timely provision of software updates for modified
regulatory frameworks (pillar 1 calculation, pillar 3 taxonomy, especially EIOPA filing rules and validation rules)
represented an essential success factor.
Mag. Dr. Othmar Ederer
General Manager
Chairman of the Board of Directors
GRAWE Group
Based on the GRAWE-specific risk profile and the internal quantification methods, zeb.control.regulatory
Solvency II pillar 2 provides a comparative analysis of
SCR risk values and sensitivity analyses for identifying
the risks’ relevance. The software projection features enable GRAWE to perform a consistent projection of the
solvency balance sheet, own funds and risks as well as
stress tests and scenario analyses. In the group module,
GRAWE consolidates projected solo results and results
of the last annual group report in an efficient consolidation approach and presents them in the annual ORSA
report for GRAWE Group.
Mag. Sibylle Scaria
Head of Group Risk Management
GRAWE Group
www.zeb.eu
Dr. Sven Jansen
Dr. Alexander Ludwig
Director
Manager
zebzeb
68
HELABA
Introduction of SAP Subledger for international
accounting
1.
Helaba, one of the leading state banks in Germany, decided in May 2012 to fundamentally modernize its financial architecture. The new financial architecture was
to be put into use at the same time as the new accounting standard IFRS 9 on January 1, 2015. This plan was
initiated in early summer 2012 with support from Finanz
Informatik and KPMG and with zeb as consortium leader.
Already in the first half of 2013, it was predicted that the
date of first application for IFRS 9 would be postponed,
so the project team defined alternative implementation
strategies for the technical infrastructure and requirements from current and future accounting standards and
decided upon an appropriate procedure. The project
team followed the implementation schedule that specified January 1, 2015 for the technical infrastructure
(based on the SAP Bank Analyzer (Subledger)), while
also ensuring compliance with the valid accounting principle IAS 39 that remains applicable until December 31,
2017.
Golive
IAS/IFRS
2.
The master plan developed in summer 2012 initially
specified two launch dates: firstly the switch of the current financial architecture (based on SAP Bank Analyzer)
from the expiring merge process to a modern multi-GAAP
architecture with the Subledger process for IFRS 9 by
January 1, 2015, and secondly, the switch from the old
HGB architecture to the Subledger procedure. Due to the
postponement of IFRS 9 to January 1, 2018, alternative implementation scenarios had to be developed and
evaluated based on risk, cost and benefit criteria.
The project team decided to decouple the implementation of thematic requirements by IFRS 9 from the implementation of the technical platform. For this reason, on
the first launch date on January 1, 2015, the switch to
the new technical SAP architecture was firstly to the standard IAS 39, which still applied at the time (see Fig. 1).
Before the launch, considerable work was done on the
quality of the solution. An overarching test and defect
management process ensured that emerging faults were
systematically eliminated by interdisciplinary teams. After a few months of simultaneous operation and intensive tests, the quality of the balance sheet and income
statement generated by the new solution was deemed
to be satisfactory. It was possible to change the leading system with the half-year financial statements to
June 30, 2015 retroactively for January 1, 2015.
2012
2013
2014
Init
Prototyping
Initial business-related and technical concepts were
designed based on a systematic process model defined
at the project’s start. These followed a product-related
structure, but also included interdisciplinary topics such
as foreign currency accounting and hedge accounting.
Once they had been implemented, first functional tests,
then delivery line tests occurred and from 2014, the inclusive integration test was conducted.
2015–2017
1st set:
5 products
Technical concept, DP concept,
SAP realization, functional test
Realization
of feeder
systems
Functional
test of feeder
systems
Technical concept, DP concept,
SAP realization, functional test
Technical concept, DP
concept, SAP realization,
functional test
Functional test
of feeder
systems
Realization
of feeder
systems
Realization of
feeder systems
Functional test
of feeder
systems
2nd set:
2 products
FT
F
3rd set:
15 products
Functional test of
feeder systems
Integration test
of product life cycle
Preparation
Integration test
Parallel test
Launch
and stabilization
Interdisciplinary topics
Decision papers (7/9)
based on financial
statement 2014
Decision papers (2/9)
HGB
IFRS 9
Figure 1: Switch to the new technical SAP architecture
Jan 01, 2018
2nd go-live (HGB)
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Andreas Polensky, Martin Danne
3.
As one door closes another opens: once the project for
international accounting was successfully completed,
the follow-up project for implementing national accounting standards for HGB on the Subledger architecture
started on October 1, 2015. The related milestone plan
stipulates January 1, 2018 as date of implementation.
The switch from international accounting to the then applicable accounting standard of IFRS 9 will also occur
to this date.
Dr. Hans-Ulrich Bauer
Dr. Jörg Raaymann
Head of Department
Head of Department
Balance sheets and taxes
Organization and IT
HelabaHelaba
www.zeb.eu
Christoph Bundschu
PartnerPartner
zebzeb
MIS
ADD-ON
INTERNATIONAL WEALTH MANAGEMENT PROVIDER
Optimized profitability with Avaloq MIS add-on module
The international wealth management provider is a
globally active full-service investment firm with locations based in various countries worldwide. It focuses
on wealth management solutions for growth companies.
Their investment professionals manage and administer
over USD 22 billion of assets on behalf of over 12,000
clients.
The Avaloq Banking Suite provides an integrated MIS
add-on module with extensive controlling functionalities,
which is based on the zeb.control information system
that allows the wealth management provider to lay the
technical foundation for effective and efficient management decisions. In detail, the main advantages of the
MIS are:
The Avaloq group is an internationally leading fintech
company. With headquarters in Switzerland, the company employs more than 2,200 highly qualified banking
and IT specialists and has a global customer base of
more than 150 financial institutions.
•proven standard reportings that contain sales con trolling key figures, trend identifications, the possibility
of drill-down functions and customized reports
•flexible and fast ad-hoc analyses with a pivot func tionality from a strategic management-based view of
profitability down to the profitability of a single
customer or account
•full integration into the Avaloq Banking Suite
With the implementation of the Avaloq Banking Suite for
the UK onshore and offshore departments and its launch
in April 2015, the wealth management provider uses the
MIS add-on module to perform their periodical sales
controlling more efficiently and transparently—and,
thus, send the relevant KPIs periodically to their overseas headquarters.
On top of these, the basic package of the Avaloq MIS
add-on module allows for further individual enhancements.
A few months before the launch of the Avaloq Banking
Suite, the project started with a kick-off workshop that
defined the required MIS scope. The scope was aligned
to the basic MIS offering, while additional requirements
were phased separately. Subsequently, a project plan
was set up with the fully defined scope and divided into
two phases. The first phase included the implementation
of basic functionalities and small parts of the additional requirements (i.e. those that were necessary for the
first phase implementation). In the second phase, all
remaining requirements were implemented.
3 Months
Provider
1.
MODULE
Analysis
and
design
3 Months
Avaloq Banking
Suite phase 1
implementation
Avaloq Banking
Suite phase 2
implementation
MIS
phase 1
implementation
zeb
72
MIS phase 1
testing
and bug fixing
MIS
phase 2
implementation
MIS phase 2
testing, fixing, training and launch
Figure 1: Overview of common project phases
The first project phase started with the analysis and design phase. Under the main responsibility of the wealth
management provider and with the support of Avaloq,
the provider defined the required business definitions,
e.g. for net new money and MIS structures. With the
implementation of the Avaloq MIS add-on module into
the Avaloq Banking Suite, its quality gates (as laid down
in the parameterization guidelines) were fulfilled and so
the actual MIS implementation could start.
Subsequently, under the main responsibility of zeb, the
first MIS implementation phase began with customizing the data transformations and setting up reporting hierarchies (e.g. cost centers, service types). After
the implementation, the project passed into a phase
of testing and bug fixing. In parallel, the provider and
Avaloq defined the requirements for phase two. Due to
this approach, there was no need to interrupt the MIS
implementation at any time. In phase two of the MIS implementation, zeb finalized the additional requirements
regarding calculation and reporting. In addition, a quality assurance phase with extensive testing started again.
Afterwards the MIS was ready for launch. In parallel, the
users were trained to build additional management reports by themselves.
Based on a clearly defined scope and implementation
approach, the project took only six months from its kickoff to the launch of the Avaloq MIS add-on module.
2.
After an exceptionally short implementation period,
the Avaloq MIS add-on module offers a proven sales
controlling view. In addition, the wealth management
provider benefits from well-structured and reproducible
KPIs. This crucial financial management information is
now flexibly available on all reporting levels, while the
integration of the MIS add-on module into the Avaloq
Banking Suite ensures a safe data interface as well as
consistent data. At the same time, the profit and cost
center management aligns with the relevant business
models and full transparency with the help sales controlling is given.
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Sebastian Hoffmann, Laura Pfannemüller, Christiane Herwig
3.
In addition to these basic functionalities, the wealth
management provider will make use of individual enhancements. As an example, further reporting content
in addition to the standard dimensions and key figures
is required. Thus, zeb is currently extending the standard
data set and reporting content according to the individual parameterization in the Avaloq Core Platform. In
addition, the users took part in a special training period
to develop further standard reports on their own. From
now on, they can adapt its reporting independently and
quickly without the help of zeb.
www.zeb.eu
Dr. Oliver Kuster
Dr. Markus Wilpert
Head Core Banking
Managing Partner
Avaloqzeb.Switzerland
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SAPFin
KFW
Relaunching SAPFin
1.
In 2011, KfW—Germany’s largest promotional bank—set
up the SAPFin program as part of the overall initiative to
modernize its IT infrastructure. Its aim is to renew large
parts of the bank management architecture in several
stages of expansion. Major architecture components
include SAP Bank Analyzer as the leading standard software for bank accounting and the integrating bank management platform (data integration layer).
In spring 2014, it became evident that the launch of the
first stage of expansion scheduled for January 1, 2015,
could not be met. Consequently, an internal and external review of the program was conducted. This entailed
far-reaching consequences: A head of department,
completely exempt from line tasks, should assume responsibility for a new project governance, thus ensuring
the successful continuation of the ambitious project.
Therefore, the new large-scale project manager drafted comprehensive change management measures for
stabilizing the cooperation within the project. As a result, the governance was restipulated together with the
persons responsible and roles and responsibilities were
defined in greater detail. A “travel contract”—signed by
all responsible key project members and the responsible executive board member—served as a major anchor
point for the further cooperation across all project levels. Central executive functions were transferred to KfW
in-house employees. In autumn 2014, as part of the
changed governance, KfW assigned zeb with the revision
of the project management disciplines.
2.
Following the initial setup, in the fourth quarter of 2014,
the project team approached four central fields of action
and embedded them in the project:
•Change management: Even during the further course
of the project, the fundamental challenge of the
change process for achieving the project goals con sisted in improving and optimizing collaboration
across all project levels, since trust and cooperation
represent the key elements of successful project work.
These challenges were addressed by means of the
newly established change management office (CMO)
through the intense use of partly creative change
management and team-building formats that were
flexibly aligned with respective project requirements.
Looking back on the project, it can be acknowledged
that the achieved strong team spirit in a group oriented
towards the project goal constituted an essential
success factor.
•Project management: To ensure a systematic proce dure, the zeb team adjusted a best-practice process
model of zeb to KfW’s current project situation. This
process model consists of an incremental “concep tual design path”, the implementation and the various
testing stages that correspond to the conceptual
design stages. Establishing the process model simul taneously to the ongoing conceptual design and im plementation activities represented a remarkable and
challenging effort.
•Provider management: The cooperation model with
various providers—typical for large-scale projects—
was adjusted to the specific roles. In this context, the
project lead aligned the cooperation with all external
parties towards a closer management. The project
now aims at a continuous assessment of the external
parties’ performance, even to individual employee level.
•Replanning: A replanning was set up based on a
scoping stage for ensuring the future solution’s com pleteness, which due to the project continuing in par allel was conducted under high time pressure and in a
short time. It included an overall framework plan with
the most important milestones for the project’s entire
duration until mid-2018 and a concrete plan for
2015. The corresponding implementation was divid ed in so-called releases (A to D), implementing bun dled fundamental business and technical require ments (see Fig 1.).
RELEASE
Thanks to the successful change process combined
with a systematic and consistent procedure as part
of the relaunch, the project team was able to stabilize
the project and to specify a still ambitious, but realistic
launch schedule. The new governance was implemented and managed to gradually establish itself, with the
organization having to be adapted and readjusted twice
to project requirements since then. Here, keeping the
executives and responsible project members on board
as part of the set up change process also played a very
important role.
But also the strong support of the project within KfW
turned out to be a success factor for the turnaround.
Right from the start, KfW trusted in the project’s effectiveness, which was then confirmed by the achieved
project goals. The close and trusting cooperation and
open exchange with the central project management office (CPMO) within the group development department—
which established itself more strongly in 2014—also led
to the success of the project.
MAIN GOALS
A+
(Vertical prototyping
for lending)
• Limited system integration testing with selective lending portfolio (IPEX loans)
B
(Vertical prototyping
for trading)
• Implementation of outstanding trading features
• Limited system integration testing with selective trading portfolio
C
(IAS 39 readiness)
• Conceptual design and implementation of process and non-functional requirements (part 1)
• Full implementation of testing phases and tests with representative mass data
D
(IFRS 9 readiness)
• Implementation of outstanding trading features
• Limited system integration testing with selective trading portfolio
Figure 1: Checking the architecture’s load capacity
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Johannes Trenkle, Sebastian Brecht
3.
In 2015, on this new basis, the project team worked
at the same time on implementing the new SAP financial architecture. In the course of the year, it was able
to achieve all major milestones of the conceptual design, implementation and testing activities organized
in different releases. As a result, the team succeeded
in successively completing vertical prototyping for the
product modules lending business and trading business,
using representative extracts from the actual data set. In
addition, the previously implemented architecture was
subject to a review by means of a mass data test with
several cycles.
Klaus Weirich
SAPFin Large-Scale Project Manager
KfW
The plan for 2016 and beyond, aiming at ensuring the
introduction of the new architecture and the upcoming
IFRS 9 accounting scheduled for January 1, 2018, was
set up with a high level of risk mitigation. As of early
2016, intensive functional tests are being conducted.
If the solution reaches an adequate level of quality, a
parallel operation close to production is scheduled for
2017 in order to achieve the architecture’s productivity as early as possible. This ambitious plan, characterized by a high level of parallel work, is supported by the
strong commitment of all responsible project members.
Consequently, all persons involved in the process are
positive that the new architecture will ensure IFRS 9 accounting at KfW as of January 1, 2018.
Michael Simon
SAPFin Deputy Large-Scale Project Manager
KfW
www.zeb.eu
Dr. Olaf Scheer
Director
Partner
zeb
zeb
80
PORSCHE BANK AG
Creating a recovery plan in compliance with BaSAG
1.
Porsche Holding Salzburg is a subsidiary of Volkswagen
Group and operates in automotive wholesale and retail
for the VW Group and other manufacturers. Porsche
Bank AG—the financial services provider within the holding—primarily ensures sales financing of automotive
sales and thus represents a major pillar of the overall
strategy. The Austrian-based bank operates in 14 countries in Europe and South America.
Based on the EU directive for the recovery and resolution of credit institutions and the national transposition
by means of the Austrian Federal Act on the Recovery
and Resolution of Banks (BaSAG), Porsche Bank was
obliged to create a recovery plan by September 30,
2015. Despite the bank’s comparatively low total assets
and clearly defined business model, the Financial Market Authority imposed comprehensive requirements for
creating a recovery plan on Porsche Bank due to its international activities. To ensure a successful, timely and
efficient implementation of the requirements, Porsche
Bank asked zeb to support them in creating the recovery
plan.
Dr. Maciej Meder, Sabine Grill
Scenario analysis
As a first step, zeb provided a client-specific structure
document to specify the cornerstones and framework for
creating the recovery plan. This document was then used
for agreeing on the recovery plan’s main content together with the client (see Fig. 1).
Strategic analysis
Indicators
Dependencies and
calibration
Recovery governance
Indicators
Recovery measures
Recovery
measures
Figure 1: Enhancing the risk management
2.
Afterwards, the project team analyzed the business
model, derived key business activities and identified
risk drivers before tackling the indicators and the governance. The goal was to enhance Porsche Bank’s governance and monitoring systems so that the bank could
rapidly respond to crises. Starting from the individual
business activities, zeb and the client identified and
evaluated possible actions and recovery measures. The
measures that were regarded as most appropriate were
validated through specially developed stress scenarios
and models, complemented by a simulation of the organization’s ability to act. In addition, the team developed
a communication manual, a standardized information
management and a prioritized road map for reducing
identified obstacles. To assure the recovery plan’s necessary quality, the employees of Porsche Bank and zeb
continuously and thoroughly discussed and agreed on
respective issues.
Stress
scenarios
In a final overall review, the zeb project team reviewed
the quality of the recovery plan in terms of full compliance with regulatory requirements. Thanks to the close
and efficient cooperation between Porsche Bank and
zeb, the team successfully created the plan in a short
time and thus laid the foundation for an enhanced total
bank management.
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83
Dr. Michaela Schneider, Dr. Markus Wilpert
3.
Due to the targeted exchange of knowledge during the
project, Porsche Bank is now able to independently
enhance and update the recovery plan. In the future,
early warning and recovery indicators will be monitored
as part of regular risk reporting. By embedding recovery
governance into the existing corporate governance, the
project team ensured that required measures can be initiated at any time. As a result, the bank will be able to
identify market developments early enough to counteract them by calling upon a predefined set of measures.
Porsche Bank is now perfectly prepared for any crisis
situations.
Hartwig Springenschmid
Head of Risk Management
Porsche Bank AG
Roland Bluemle
Project Manager Risk Management
Porsche Bank AG
www.zeb.eu
Dr. Michaela Schneider
Lukas Amstler
Managing Partner
Manager
zeb.Austriazeb
ZEB|WELL-CONNECTED
As an industry specialist with profound knowledge
of the financial services market, we at zeb have established a far-reaching and sustainable network of
subject and industry experts—in Germany and across
Europe. A network you can rely on.
Christian Schiele, Dr. Markus Thiesmeyer
F F ICE
ZEB.O
BE R L I
N
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4 Studies
ZEB.STUDIES
Focus on markets
Christian Rupp
COO agenda 2020—Trends and need for action in banking from a COO perspective
The zeb.studies constitute an important addition to our
project work. They combine comprehensive, data-based
analyses and sound evaluations with practical issues.
The aim is always to identify implementation-oriented
and forward-looking answers and solutions to current
problems from the financial sector. The following pages
provide a brief overview of the main contents and results
of the new zeb.studies.
European Banking Study
zeb continued the long-standing series “European Banking Study” in the past year. By using the 50 largest European institutions as a data set, the 2015 edition showed
that the banking sector is currently suffering considerably from insufficient profitability. In addition, because
of the current interest levels and the continually growing regulatory pressure, the situation will continue to
become more and more critical in the future. The study
uses detailed simulation to prove the further decline of
profits and the shrinking of capital ratios, in particular
when the new Basel IV provisions are taken into account.
Institutions and business models that are very complex
are affected to a greater degree. For them, the declines
and capital gaps are so significant that it cannot be
enough to simply take isolated measures. Systematic
and far-reaching steps such as reducing the complexity
of business models in combination with a clear strategic positioning and considerable cost reductions are the
best ways forward. Market consolidation will continue to
increase through mergers and market exits.
The COO (Chief Operations Officer) area is particularly
affected by an enormous change through the issues
of digitalization, regulations and profitability pressure,
which are currently shaping the financial landscape.
The pressure to act that these generate is felt by almost
all COOs, however, specific measures have only been
taken to a minor degree, according to own judgment.
Catching up will demand a comprehensive “Agenda
2020”, which in turn offers great potential. While progressing levels of digitalization, for example, will allow
banking to finally become a customer experience, increased efficiency potentials simultaneously lead to
an improvement to the cost base. The days of isolation
are gone: in order to master the immense challenges,
the COO area must develop from responsibility for the
efficient implementation of requirements of business
units in their own area to the overarching coordination
and active design of change to the total organization.
For the COOs themselves, this means moving away from
being “Chief Operations Officer” towards “Chief Operating Officer”.
89
4 Studies
STUDIEN
Corporate Client Study 5.0
Private Banking Study for Switzerland
HR Study
Companies in the DACH region are doing well and corporate client business is delivering banks stable profits.
The low interest rate phase does not affect this business
segment to the same degree as retail business or treasury, because corporate lending has become the most
attractive investment product on the asset side. The relative importance of this business segment is continuing
to grow and all market players want to grow in it. This
zeb study shows that the institutions expect accumulated growth by 2020 to exceed predicted market growth
by a factor of 3. The zeb forecast model shows stable to
moderate growth to profits by 2020 depending on economic cycle and interest scenarios. Through surveying
more than 200 credit institutions and interviews with
entrepreneurs, we were able to identify six specific adjustments that should be made: credit institutions can
ensure a strategic competitive edge through the increase
of convenience in lending processes, the use of price
flexibility, adjustments to support models for business
clients, an integrated view of entrepreneurs and enterprises and the promotion of entrepreneurship in the corporate client team. In addition, digitalization must be on
banks’ CC agenda.
Swiss banks will have noticed a significant increase
in pressure on private banking business models in recent years—not just through further breaking away of
traditional competitive advantages, such as banking
secrecy, but also through more complex regulatory requirements and the euro decoupling of the Swiss franc.
This is enough reason for zeb to take a closer look at the
situation for Swiss private banking. In doing so, zeb did
not just restrict itself to an analysis of recent years, but
rather focused especially on the simulation of a sample
of 20 private banks in diverse scenarios until the year
2020. It revealed that the profitability of business models is extremely fragile—in a “market correction” scenario, more than half of the banks sampled dropped into
the loss zone. The study team regards the pressure to
act as very high. For institutions to be successful in future, they will need to quickly stabilize their profit basis,
reduce costs and make them flexible, and utilize the opportunities presented by digitalization.
Since 2009, zeb has conducted a survey on human resource (HR) management in credit institutions in Germany, Austria and Switzerland every two years. In total,
over 900 respondents from 579 institutions took part in
the 2015 HR Study. The pool of respondents consisted
of HR managers, members of boards of directors and
executives. The results show that while high quality HR
management improves financial figures, good financial
figures do not indicate high quality in HR management.
Management quality drives success, but success does
not necessarily drive quality. For HR managers, the key
topics are leadership quality and employee satisfaction.
Members of boards of directors, however, regard the topics of staffing and succession plans to be much more
important. The improvement to chances for promotion
for female bankers was ranked on the second-to-last
position. The proportion of women in management positions is stagnating, even though women make up 60%
of the workforce. The involvement of older employees in
training measures is low, as is the perceived benefit that
this would bring. In this regard, credit institutions are underestimating the most important personnel resources
of their future.
Markets
in focus
Taking the pulse of the banking sector—
zeb’s digital pulse check
Netflix instead of local video stores, airbnb instead of
hotels—changing consumer demands caused by digitalization are leading to shifts in various sectors. But how
strong is the disruptive force in banking? zeb’s digital
pulse check gives interesting answers: more than 250
top decision makers from the banking sector have
allowed zeb to measure their digital pulse. The result is a
surprise and a confirmation at once: approximately half
of the participants feel optimistic and expect an opportunity for increasing income by over ten percent through
digitalization. At the same time, the digital pulse reveals
a major need for action for sales channels, processes as
well as organization and culture. But what about customer understanding, products, services and IT? Banks
appear to be focusing on obvious needs for action but
are avoiding substantial changes. This reveals a limited
awareness among banks of the essential changes needed along the value chain.
Jens-Uwe Holthaus, Dr. Eva Salzer
90
91
4 Studies
Sebastian Martin
zeb.market.flash
Capital market performance and the associated increases or decreases in shareholder value make up the
central target values and management parameters of
global listed banks. zeb.market.flash offers a quarterly
overview of the current data, drivers and backgrounds
to value development of the largest and most important banks worldwide. Based on selected graphics and
tables, zeb.market.flash visualizes and comments on
current market performance of the international banking
sector by region, banking business model and individual
institutions. In addition, the major drivers of capital market performance are examined. This involves the development of the overall macroeconomic environment, the
current interest rate environment and bank-specific factors such as profitability, efficiency and risk. Each issue
includes a chapter focused on a current topic from banking. In the year 2015, we presented the debt crisis in
Greece and the consequences of a collapsing Chinese
economy, among others. zeb.market.flash is published
at the start of each quarter on the BankingHub website
(www.bankinghub.eu).
Financial controlling study
for German hospitals
In 2015, zeb conducted the fifth study on the current
status and development trends of controlling in hospitals
with the Deutscher Verein für Krankenhaus-Controlling
(German Association for Hospital Controlling) and
the Chair in Managerial Accounting and Control at the
University of Wuppertal. This year, cost allocation and
transfer pricing were given special consideration. Just as
in previous years, the results show that most hospitals
have already spent a lot of time and effort working on
reporting, general corporate planning as well as revenue,
cost and profit management. A closer look reveals room
for improvement in these areas: contribution costing is
still not very common and many institutions even skip
revenue and cost allocation. Two-thirds of the institutions indicate that they use annual objectives at hospital level. It is worth noting that comprehensive liquidity
planning has still not yet been accepted to the same
level as in other sectors. In terms of introducing the flat
rate-based calculation system for treatment pricing in
psychiatric and psychosomatic institutions (PEPP), the
results reveal further activities in documentation and
management. The size of an institute remains the most
important influencing factor for the level of implementation of economic management systems.
Besides these studies and publications, over the last
12 months, our study teams have also updated and
expanded our regular examinations on private customer
business, private wealth management in Germany and
the business of building societies.
If you have any further questions or require information
concerning zeb.studies, please do not hesitate to contact us.
www.zeb.eu
Heads of zeb.research
Heinz-Gerd Stickling | Oliver Rosenthal
Phone +49.251.97128.300
E-mail [email protected]
THE WORLD OF
FINANCE IS GROWING.
WE ARE ON SITE.
Berlin
Luxembourg
Oslo
Friedrichstraße 78
10117 Berlin
Germany
Phone +49.30.473753.0
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www.zeb.de
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Luxembourg
Phone +352.273561.0
Fax +352.273561.100
www.zeb.lu
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0252 Oslo
Norway
Phone +47.210847.74
www.zeb.se
Copenhagen
Milan
Arne Jacobsens Allé 7
2300 Copenhagen
Denmark
Phone +45.3694494.0
www.zeb.se
Via Santa Maria Segreta, 6
20123 Milan
Italy
Phone +39.0272.2751
Fax +39.0272.095241
www.zeb.eu/italy
Frankfurt
Taunusanlage 19
60325 Frankfurt am Main
Germany
Phone +49.69.719153.0
Fax +49.69.719153.410
www.zeb.de
Moscow
Prosvirin per 4.
107045 Moscow
Russia
Phone +7495.5454289
www.zeb.com.ru
Stockholm
Biblioteksgatan 11
11146 Stockholm
Sweden
Phone +46.86705.700
www.zeb.se
Vienna
Praterstraße 31
1020 Vienna
Austria
Phone +43.1.5226370.0
Fax +43.1.5226370.630
www.zeb.at
Warsaw
Hamburg
Munich
Kurze Mühren 20
20095 Hamburg
Germany
Phone +49.40.303740.0
Fax +49.40.303740.111
www.zeb.de
Theresienhöhe 13a
80339 Munich
Germany
Phone +49.89.543433.0
Fax +49.89.543433.300
www.zeb.de
Saski Point
ul. Marszałkowska 111
00-102 Warsaw
Poland
Phone +48.22.52853.50
Fax +48.22.52853.60
www.zeb.pl
Kiev
Münster
Zurich
42-44 Shovkovychna Str.
01601 Kiev
Ukraine
Phone +38.044.49039.70
Fax +38.044.49039.71
www.zeb.com.ua
Hammer Straße 165
48153 Münster
Germany
Phone +49.251.97128.0
Fax +49.251.97128.101
www.zeb.de
Bellerivestrasse 5
8008 Zurich
Switzerland
Phone +41.44.56067.67
Fax +41.44.56067.69
www.zeb.ch
94
IMPRINT
Special thanks to all employees at zeb for their support.
Published by
zeb.rolfes.schierenbeck.associates gmbh
Hammer Straße 165
48153 Münster
Germany
Phone +49.251.97128.0
Fax +49.251.97128.101
www.zeb.eu
Editor
Judith Altenau
Andrea Rothländer-Busch
Design and realization
Kerstin Wichmann
Photos
Markus Püttmann
André Stephan
Matthias Budde
Printing house
Thiekötter Druck GmbH & Co. KG
An der Kleimannbrücke 32
48157 Münster
Germany
360° CONSULTING FOR FINANCIAL SERVICES — F ROM THOUGHT TO ACTION

report 2015.2016 international

Transcription

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