With over 280 branch offices, this universal bank is a strong financial partner for more than 600.000 private and corporate customers throughout Europe. It is a wholly-owned subsidiary of a leading financial institute with more than 135 million private customers and over 1 million corporate customers in 22 countries worldwide.
The bank was re-established after a takeover some years ago. The previous product portfolio was expanded but the existing system architecture did not cover the new business operations. A decision was taken to remove the IT environment and set up a new one.
The bank decided on the FlexFinance solution from FERNBACH to cover the IFRS regulations. FlexFinance automates the entire accounting process for the whole portfolio for private and corporate customers in accordance with IAS/IFRS and lays the foundation, even today, for complying with the upcoming IFRS 9 standards.
A standard package for all business cases
Setting up the IT landscape involved a huge investment in time and money from our customer. Smooth IT implementation was all the more important because the bank needed to use the solution for its business operations quickly, efficiently and without any restrictions.
Therefore, a crucial factor in favour of FlexFinance was that the solution is delivered 'out of the box'. 'Out of the box' is the term used for the pre-configured standard installation in FlexFinance which was set up for a typical bank (model bank) to cover most banking requirements. The delivery contains the standard configuration for valuation, journalisation, general ledger functions as well as disclosures for internal and external purposes. All the necessary deal types, financial instruments as well as the most common currencies were directly available for this customer. The IFRS requirements did not have to be implemented by pre-processing during the project which meant that the solution could be used immediately. Despite preconfigured products, our customer could still use his own chart of accounts and adapt the solution to meet his requirements.
Individual financial statements are required owing to the business activities in several countries with different currencies. The Accounting Generator in FlexFinance can process multi-company and multi-currency requirements. It covers all IFRS regulations, generates credit/debit entries for all accounting events and creates individual statements for each organisation.
A Look Ahead
In view of the future compliance requirements for IFRS 9, it is essential that appropriate precautionary measures are taken, even now, so that the necessary processes are available when the time comes. FlexFinance allows our customer to act now in this respect and to position himself so as to secure an advantage over the competition. FlexFinance provides efficient and cost-effective methods to support the three stages of risk provisioning under IFRS 9.
FERNBACH monitors the development of the IFRSs closely and implements the necessary adjustments at an early date. This ensures that our customers always have an up-to-date IFRS solution in operation.