Ronhe Technology undertook the construction of a comprehensive budget management system for a joint-stock bank, supporting the establishment of a new performance assessment system.
The joint-stock bank is one of the earliest emerging commercial banks established during China’s reform and opening-up era. It was the first bank to participate in both domestic and international financial markets in China, and its A and H share were listed simultaneously on the Shanghai Stock Exchange and the Stock Exchange Hong Kong. The bank has branches in over a hundred major cities across China and several subsidiaries both domestically and internationally. With total assets exceeding 9 trillion yuan and over 60,000 employees, it boasts strong comprehensive strength and brand competitiveness.
Project Background:
The new management accounting system serves as the data platform for refined operational management, incorporating modules such as operational goal management, performance management and performance evaluation etc. It provides a scientific basis for input-output analysis and comprehensive profitability assessment. Additionally, it offers robust support for a closed-loop management system encompassing pre-event forecasting, in-event control and post-event performance evaluation.
Currently, there are issues with redundant processing and inconsistent data standards between forecast data and performance data, which pose challenges for management analysis. Additionally, the pre-event forecasting tools are foreign products and do not meet the bank's transformation requirements for information technology application innovation.
Objectives：
In accordance with the bank’s overall planning and branch optimization recommendations, this project aims to implementing models for calculating existing and incremental assets, interest rate fluctuations and data processing for operational goal calculations. Achieve branch-level customer goal management, bringing operational goal management closer to front-line operations and better guiding the implementation of strategic goals. Enhance overseas data, incorporate customer group profitability data, and develop functionality on the existing management accounting system to enable customer group profitability analysis, performance management, recalculation of baselines, indicator management and mobile-based daily operational reports etc.
Solutions：
The Ronghe Technology Comprehensive Budget Management System is based on the bank's current historical data, combined with external market research, industry benchmarks, and macroeconomic data. After processing and organizing this data through the data platform, it is imported into the comprehensive budget management model, which facilitates simulation calculation, creating budget plans, defining practical models, budget preparation, review, cascading, control, adjustment and analysis. The results of the budget provide a basis for the bank’s strategic planning, risk management, structural adjustments, performance evaluation, and cost control.
System Architecture:
