Company: World’s Largest Building Society

Business Challenges

Struggling  to Comply with New Regulations

Based in London, this company is the world’s  largest Building Society ― a member-driven organization similar to a North  American credit union. It is the U.K.’s fourth largest mortgage lender and  second largest savings provider and counts 11 million members. As a major  financial institution, this company is required to comply with the Basel II  Capital Accord, a new set of international regulations governing data  consolidation and risk management. Basel II requires institutions to be able to  quickly and accurately publish enterprise-wide consolidated reports on risks,  capital and risk management. To comply, it constructed a new data warehouse,  but badly needed a solution to provide a consistent single view of data to all  user groups, and analyze vast quantities of risk data relating to millions of  customers.

Slow  and Awkward Data Reporting

From the CEO to the senior management team  and through to key risk mangers, one of the drivers of the Basel implementation  is that the end users are accountable for the information they produce and, in  the worst case scenario, could even face jail.

This company already had a team of 30 to 40  MIS staff who produced numbers for analysis, but didn’t actually understand  them, leading to a slow turnaround time. What was urgently required was a way  for business end users to construct their own reporting. However it also had to  be simple enough that it wouldn’t distract them from their real task of  understanding the numbers.

Duplicate  Tools Adding to Costs

Historically at this company different  business areas were using different tools for data analysis and reporting, and  IT ended up maintaining a collection of different tools which did the same  thing. This caused several problems ― from a cost perspective it was difficult  to mange, and from a technical perspective it was very difficult to support.

Challenges Highlights

  • To comply with Basel  regulations the Society had to assess its operational risk by analyzing each  individual loan, but it had no way to pull information from its data warehouse  at that level
  • Because business end users  couldn’t construct their own reporting they are not truly accountable, as  required by Basel
  • Slow turnaround time when  requesting data reports hampered business analysts’ job of looking for new  profits and efficiencies
  • IT was incurring unnecessary  costs by supporting multiple, duplicate analysis tools

Solution

Control  Risk and Manage Capital

Using Panorama’s BI Solution provides this  company with a consistent single view of data for all user groups, and supports  the quick and accurate production of consolidated reports. This allows the  Society to prove to Basel regulators that it has control and accuracy in  managing its risk, and by doing so will be able to maximize its revenue on the  available capital.

Empower  the End User

With Panorama the business end users ― the  experts who really understand the numbers ― can now construct their own  reports. Instead of requesting a report from the central MIS staff and waiting  for a response, analysts can get their own information in just a few seconds.  This empowers the end users to spontaneously investigate areas of interest that  emerge from the data. This improved ability to examine data frees the analysts  to focus on their real task ― discovering ways for the organization to become  more efficient and profitable.

 

Improve  Quality of Reporting with Increased Functionality

Additional functionalities are adding extra  dimensions to the reporting, allowing users a deeper understanding of the data.  For example, when reporting on mortgage portfolios analysts previously saw only  a balance over time. Now, however, the user can break that number down by age  of customer, by geography or in many other ways. The end result: analysts can  now discover trends which were previously hidden by the overall numbers coming  into the system.

Introduce  Change Gradually

By rolling out three flavors of Panorama ―  from power users to simple information consumers ― the company is gradually  introducing change to the organization. For example, key users who are  accustomed to receiving their information via Excel with no functionality get  exactly the same thing ― with the exception that multiple tables can be added to  a single report and then connected with users that use the browser.  The benefit is instantaneous because the  information will automatically refresh, but the change is painless since the  user’s view of the data is still the same. Additionally, delivering BI to  everyone who needs it via a single source simplifies IT and training  requirements.

Save  Time and Money with Consolidated Reporting Tools

Previously the company was maintaining a  number of different tools, but with its data warehouse it has a single platform  to go forward on and Panorama provides a single view of the data. In the  future, any areas of the organization that require aggregated reporting from  the data warehouse ― such as HR systems or the general ledger ― will use  Panorama by default. This eliminates the need to go through complex purchasing  or application development processes.

Solution Highlights

  • Meet Basel requirements by  reporting on risk-related data
  • Enable business end users to  construct and be accountable for their own reports
  • New reporting functionalities  lead to more complete data analysis
  • Introduce change gradually via  customization
  • Consolidate reporting tools  across the enterprise

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