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OFSA implementation for a bank in north india
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Our Client, a bank Head-Quartered out of North India, has been one of the fastest growing private sector banks in India and today it has a network of more than 500 branches/offices spread across the country offering world class banking products/services to its customers.
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Our Client has undertaken an initiative towards this direction by putting in place the Oracle Financial Services Applications (OFSA), a sophisticated tool designed to capture the profitability of their branches and products. The Bank is implementing the Performance Analyzer and Transfer Pricing modules of this set of applications.
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The OFSA implementation is intended to enable the Bank to analyse the following:
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Product wise profitability (rolled up to include product classification)
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Application Background
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Banking institutions in India are facing a need to enhance their systems partly or wholly in terms of integration, data capture, data storage, security and reporting in view of the sheer volume of data to be sourced, extracted, stored, calculated, reconciled to arrive at profitability analysis. Built specifically for financial services businesses, the OFSA Suite helps to carry out critical functions like funds transfer pricing, customer profitability management, budgeting and planning, and risk management efficiently. The application allows for the consolidation and reconciliation of financial data that ensures the accuracy and reliability of the data on which analyses are based.
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OFSA, with its unique single enterprise-wide data model, called Oracle Financial Data Manager, caters to most banks requirements like:
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- Performance Analyzer
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- Budgeting & Planning
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Business Objectives
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The Bank’s desire is to establish a comprehensive, sound and tested Transfer Pricing and Performance Analyzer that is easily understood by the branches also measures the profitability accurately based on the Transfer Pricing methodologies applied and the Cost Drivers designed and allocated to various branches/ products.
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Transfer pricing provides a benchmark that allows the bank to judge whether the yield on the loan, for instance, is greater enough to cover not only the Operating Cost, but also the cost of acquiring the funds that needed to raise this loan.
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Performance Analyzer is an efficient cost allocation engine to help the bank understand and allocate all types of costs, especially indirect costs, against its product-lines and branches. For e.g. using this methodology, the Bank will now be able to allocate, based on sound cost allocation principles, a certain percentage of the Corporate Office expenses behind each of its retail products which are sold from the Branch counters.
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- Definition of data required by mapping of Bank’s product applications to the OFSA data model
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- Parameterisation of OFSA system based on information submitted by the Bank
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- Assisting the bank in testing the outcome of the solution
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The Bank will have multiple source systems to make the data available for OFSA operations & reporting. These include the Core Banking solution (Finacle), the Treasury operations system (Fextra), and the Credit Card system (Vision Plus). There will be high degree of stress on data loading & cleansing.
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The Role of ManSoft
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Our services have been retained by Oracle Consulting Services, the premier consulting arm of Oracle Corporation, to deliver this OFSA solution to the Bank.
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