Tashkent, Uzbekistan (UzDaily.com) -- Uzpromstroybank has automated budgeting processes based on the SAP BPC solution, SAPRUN has become a development and implementation partner. The transition to a centralized automated data collection system made it possible to halve the time required for preparing financial statements.

The finance transformation project laid the foundations for further bank automation. At the moment, Uzpromstroybank together with the SAPRUN team has completed the development of a methodology for transfer pricing and cost allocation and is working on the design of mechanisms for determining the cost of banking products in the SAP PaPM system. It is planned that this project will be completed in the spring of 2022 and will be the first such implementation in the banking sector of Uzbekistan.

Oybek Vohidov, director of the department of accounting and financial management of Uzpromstroybank, noted: “The modern automated budgeting system is a significant competitive advantage not only in the financial sector of Uzbekistan, but also globally. The project allowed the management to see the real picture of what was happening, to understand the current situation, and also to build a new level strategy on the basis of a new decision. The bank has become more attractive to external investors due to the transparency of budgeting processes, business transparency and opportunities for high-quality and realistic forecasting. "

Before switching to the SAP BPC solution, the budgeting process took up to 3 months and was extremely time-consuming, since it required manual collection and consolidation of data, planning was carried out in MS Excel. In addition, it was closed on the financial forecasting department and cut off from the activities of other divisions of the bank, only key items were taken into account, and the detailing took place on a quarterly basis, there were no mechanisms for determining the cost of a banking product.

The introduction of the new solution made it possible to create in "Uzpromstroybank" a single integrated system for strategic planning, budgeting and consolidation of reporting. A methodology was developed and the functionality of target and key budget indicators was introduced, they are included in a single integrated budget model, which allows regular monitoring and a plan-fact analysis of their implementation, the main criterion for the successful completion of the budget planning process is the achievement of the target indicators of the business plan. Formation of financial statements is carried out in an automated mode, analytical capabilities have been expanded: added analysis by CFD, product, currency, sales channel, urgency, tariff plan. The planning granularity has been moved from quarterly to monthly, and the planning horizon has also been reduced.

Vitaly Garbuzov, Project Director of SAPRUN, said: “Clause-by-clause financial analysis has been reoriented to product analysis, analytics are now conducted for each banking product, this helps to calculate the profitability of the proposal, detail the analysis of financial indicators, increase the transparency of processes and optimize operating costs. The bank has developed a methodology for transfer pricing and cost allocation, divisions are divided into cost and profit centers. "

The bank has launched a new planning functionality: for large clients of the bank, including enterprises of strategically important industries, the oil, energy industry, construction complex, mechanical engineering and transport will use an individual approach to planning for each transaction, for retail and small business transactions - mass planning. In the near future, there is a further expansion of the functionality of the new budgeting system: the integration of KPIs into the budget model, planning and control in accordance with IFRS, detailing the OPEX / CAPEX planning forms, and the introduction of limits.

Laziz Adkhamov, director of SAP Uzbekistan, noted: “The business effects that the bank will receive as a result of the project are long-term and capital-forming. This is the standardization and improvement of business processes in terms of budgeting and financial analysis, increasing investment attractiveness, reducing unprofitable products. SAP BPC is a scalable system that will support the growing business needs, ensure the speed and accuracy of financial planning. "