Bank streamlines processes and increases profits

Tinkoff Bank, which operates in Russia, has chosen a business analytics solution to streamline its processes and maximize profit. The bank will use technology from SAS to allocate expenses using activity-based management (ABM) methodology.

Pavel Tokarev, deputy CFO and VP for finance and strategic planning at Tinkoff Bank, says, “Maintaining transparency of management of our business processes has remained a priority as our business has been growing and our business model has been getting more complicated. Full-scale ABM solutions require big data loads about bank operations and customers. After careful analysis, we implemented SAS beginning in late 2013. We were impressed by SAS software’s capabilities and the ease of integration into our existing infrastructure.”

Tinkoff Bank’s basic SAS ABM model consists of five main units: resources, business processes, activities, products and channels. More than 30 groups of calculated indicators influence prime cost calculation. The system encompasses the entire bank structure, down to department levels and working groups. Bank expenses are itemized and product costs traced.

Tokarev says, “We achieved the level of itemization we needed in order to understand the cost structure faster and more accurately. Now we justify investment decisions and trace their consequences. We can understand different projects’ contributions to the current financial result, make corrections to product lines, optimize processes, detect problems and find ways to save resources. The finance department ordered the system, but the results are increasingly popular with the managers of practically all bank departments.” Tokarev adds, “SAS helps us to implement unified principles of calculating expenses and prime cost across the entire bank, eliminating inconsistencies in accounting reports.” He says the bank plans to expand its use of SAS.

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