Daniel Havey
What should I be looking for in a Performance Management Tool for Banks?

This article will focus on what you will be looking for in a Performance Management Tool for Banks.

 

Image taken from Shutterstock.

Image taken from Shutterstock.

What is Performance Management?  According to the Harvard Business School, performance measurement focuses on four main areas:

-Communicating with external investors to ensure that a firm’s securities are fairly priced and that they are able to access capital

-Measure and evaluate a firm’s economic performance

-Improve resource allocation and strategy implementation within a firm

-Build accountability for performance through effective external and internal governance

 

The emphasis of this article will be on improving resource allocation and strategy implementation, specifically for banks.  Though banks have evolved over time, their basic function is to take in deposits and reinvest those funds back into the community in the form of loans for such things as houses, cars, education, and infrastructure.

Continue reading

Daniel Havey
Best Management Reporting Tools for Banks!

This article will focus on Best Management Reporting Tools for Banks.

 

 reportingWhat am I looking for?  At first, this article was going to be about the Best Reporting Tools for Banks.  I then realized that there are many different types of reporting needs for banks that tools focus upon.

  Continue reading

Daniel Havey
Financial Reporting for Banks is Not Just Looking Backwards Anymore!

This article will focus on how Financial Reporting for Banks has changed overtime to be more forward looking.

Tell me what happened:  When I first started out as an Accounting Manager for a large regional bank, my job was to create monthly financials for each branch and tell them what they did last month.  Payroll, loan, and deposit information were already at the branch level in the general ledger; but not much else.

To improve the Financial Reporting for the bank, my job was to allocate all the other costs such as rent, FDIC insurance, funds transfer pricing, loan charge offs, and more to the branches.  This process took a team of five people a minimum of three weeks each month to accomplish.

Once everything was posted to the general ledger, my team would dump everything into a huge Microsoft Access database.  We then wrote a macro that would step through all four-hundred branches to create Excel workbooks on a hard drive.  Once created, we would print every report and send through interoffice mail.

By the time the branch network received their reports and started asking questions, we were already on the next month’s cycle.  Branches were always asking what happened and never got timely information to take corrective action.  It was just an endless cycle of number crunching and tree cutting.

Let’s speed things up:

Continue reading

Daniel Havey
How Microsoft Excel Reporting for Banks Has Evolved

This article will focus on Microsoft Excel Reporting for Banks and how it has evolved over time.

Origins:  I met Harold as my new boss in 1989 when I became Controller for a small subsidiary of a bank.  At the time, I was a Lotus 1-2-3 disciple.  I was great at writing macros and spitting out reports.  The one thing I hated about Lotus, however, was its poor printing capabilities.

Harold introduced me to Microsoft Excel and its ability to set and preview the print area made me convert overnight.  Harold said he loved the ability to type numbers into Excel every month, so he could get a good feel for the financials.

Continue reading