This customer is a large multinational bank with a business volume of roughly 1 million loans, almost 4 million savings accounts and 2 million current accounts.
The current system architecture comprises, amongst other things, a core banking system for the products, loans and deposits as well as Murex for treasury products. The bank decided to install the Oracle General Ledger, for which data is supplied via files and the Oracle Financial Hub (OFH), for its accounting procedure.
However, this system architecture does not meet IFRS requirements or the international, group-wide reporting procedure. Therefore, a solution to the problem had to be found.
Benefits for the customer
This customer opted for FERNBACH's products so as to have a solution that could keep pace with a rapidly expanding company while satisfying future requirements.
FERNBACH's staff took on the task of calculating the IFRS ratios (EIR, amortisation, individual and collective risk provisions) as well as the set-up of the data mart for reporting. In this case, the IFRS valuation results are posted by FERNBACH and the debit/credit entries are delivered to the OFH. Moreover, the linear amortisation, which is calculated and posted in the core banking system, is neutralised and replaced by an amortisation process based on the effective interest rate.
Simplifying processes and compliance with IFRS 9
The outcome will be the replacement of the previous complex processing system with limited verifiable results by the transparent, automated IFRS solution from FERNBACH. Processes will be simplified and enhanced by workflow-based process control, as far as possible. The accounting procedure will comply with legal requirements and will reflect the economic situation in accordance with IAS/IFRS and PSAK. Even today, FlexFinance has been configured for the future IFRS 9 requirements and will help the customer to become one of the first banks to comply with these standards.