The Most Efficient Reporting & Analysis Tools

This article will break down the best-in-class corporate performance management solutions as described in the e-book “Enabling World-Class Decisions”

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Daniel Havey
Top Cloud-based Financial Planning and Analysis Budget Tools for Banks

This article will focus on the Top Cloud-based Financial Planning &Analysis (FP&A) Budget Tools for Banks.

Image taken from Shutterstock.

Image taken from Shutterstock.

The way things used to be – When I first got into building a budget for a bank, we were using Lotus 1-2-3 spreadsheets that were stored on 5¼ inch floppy disks.  The spreadsheet was basically a 24-month trial balance for each branch or department.  The first eighteen months contained historical balances.  The remaining eighteen months were the forecast for the rest of the current year and budget for next year.

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Daniel Havey
Cloud Reporting for Banks

This article will focus on Cloud Reporting for Banks.

Image taken from Shutterstock.

Image taken from Shutterstock.

Just what is Cloud Reporting?TechTarget defines Cloud Analytics as a service model in which the reporting and analysis process are provided through a public or private cloud.  These solutions are typically offered under a subscription-based pricing model called Software as a Service (SaaS). Gartner defines the six key elements of analytics as data sources, data models, processing applications, computing power, analytic models and sharing or storage of results. In its view, any analytics initiative “in which one or more of these elements is implemented in the cloud” qualifies as cloud analytics. Continue reading

Daniel Havey
Web-based Reporting for Banks

This article will focus on Web-based Reporting for Banks.

CFO DashboardWho cares about web-based reporting for banks? When we think about reporting for banks, we often think about accountants, controllers, and CFO’s.  According to The Wharton School, accounting is considered the language of business.  The story of any company, no matter the size, the industry, or the country of origin, is told through its financial records and reports. Continue reading

Daniel Havey
Business Intelligence (BI) Tools for Banks

This article will focus on BI Tools for Banks.

Image taken from Shutterstock.

Business Intelligence (BI) definitions – TargetTech defines BI as a technology-driven process for analyzing data and presenting actionable information to help corporate executives, business managers and other end users make more informed business decisions. Gartner says that BI is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. Webopedia says BI represents the tools and systems that play a key role in the strategic planning process within a corporation. These BI systems allow a company to gather, store, access and analyze corporate data to aid in decision-making. The main theme among these various definitions is that BI encompasses tools that help with decision making.  When it comes to banking, there are many use cases for BI.

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Daniel Havey
Financial Planning and Analysis (FP&A) Tools for Banks

This article will focus on FP&A Tools for Banks.

Image taken from Shutterstock.

Image taken from Shutterstock.

So what does a FP&A manager do? – Here is a position description for a Manager of Financial Planning and Analysis for a bank in Atlanta.

The FP&A Manager will be a key finance and analysis partner for multiple lines of business within the organization. Duties will include providing support for strategic and tactical planning, understanding financial and operational results, and supporting management decision making. Key responsibilities include:

• Budgeting and Forecasting
• Monthly Analysis
• Business Scenario Planning
• Dashboard Preparation
• Ad hoc Analysis

Let’s take a look at each of these responsibilities in a little more detail.

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Daniel Havey
Forecasting Methods for Banks

This article will focus on Forecasting Methods for Banks.

Image taken from Shutterstock.

Image taken from Shutterstock.

 

Have you done this? – According to Nasdaq, the consensus Earnings per Share (EPS) forecast for Bank of America for the years 2017, 2018, and 2019 is $1.73, $2.03, and $2.19 respectively.   How did they come up with these numbers?  If I told you that an analyst for Nasdaq went to the corner fortune teller and asked them to divine the numbers, you would laugh at me.  Or if I told you that they called three different gas stations for their price of gas for their research, you would say that the information was irrelevant. Continue reading

Daniel Havey
Strategic Planning for Banks

This article will focus on Strategic Planning for Banks.

Why I hate the first six weeks of the year – If you have been a member of any gym for more than a year, you will know what I am talking about.  Whether you go to the gym twice a week or all seven days, you have a routine and see the same people.

Then, January 1 hits.  The parking lot is so full that it takes you ten minutes to find a spot.  You enter the gym and there are three times as many people as normal.  What used to take forty-five minutes to finish your routine now takes an hour and a half because every piece of equipment is being used!

What makes it worse is that most of these new people have no idea what they are doing.  You say to yourself, just wait until Valentine’s Day.  Almost all of these newbies will be gone by then and things return to normal.  And how do I know which ones will stay and which ones will leave?

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Daniel Havey
Budgeting Tools for Banks

This article will focus on Budgeting tools for Banks.

Photo taken from Shutterstock.

Photo taken from Shutterstock.

The Balanced Scorecard is finally in place, now what? The senior management of the bank came up with twenty-four key performance indicators (KPI’s) that will make up the bank’s balanced scorecard.  Everybody is excited about the new measures and is looking forward to see how they rank.  The first report comes out with a lot of fanfare.  The second report then comes out and nothing changes.  Hmmm.  Everyone thought performance would immediately start to improve.

 

What is missing?  Budget tools for banks!  Now that the bank knows what measures are important to implementing its strategy for success, it needs to come up with a way to set goals and targets for those various measures.  The first step in this process is to come up with a budget.  There are many approaches and tools for budgeting for banks.  This article will help you sift through the myriad budget tools for banks by coming up with a list of requirements.

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Daniel Havey
Balanced Scorecards for Banks

This article will focus on Balanced Scorecards for Banks.

 

Image taken from Shutterstock.

Definition:  According to TechTarget, a performance scorecard is a graphical representation of the progress over time of some entity, such as an enterprise, an employee or a business unit, toward some specified goal or goals. Performance scorecards are widely used in many industries throughout both the public and private sectors. The performance scorecard is an essential component of the balanced scorecard methodology.

 

The focus of this article will be on balanced scorecards for banks.  Implementation of the balanced scorecard for banks and financial institutions is a very tricky thing, according to BSC Designer, as there is huge temptation to focus on financial indicators only.  We all know that banks work with money to make more money.  So, it is very easy to ignore non-financial indicators that have a direct impact on financial performance of banks.

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