High speed charging for Sunline’s Comprehensive Value Management Business with the newly won project for a provincial association as well as the recent project launches for a joint-stock and a rural commercial bank.
With the continuous development of China's information technology, the economic environment and financial environment are also undergoing profound changes. The wide application of the Internet and Big Data in the financial field has caused the banking industry to face different business risks and competitive pressures. Only by taking precautionary measures, increasing revenue by reducing expenditure, realizing refined management and differentiated operations, as well as accelerating product innovation and service quality improvement, can banks stay in the fight and achieve sustainable development.
Independent research and development have helped the management transformation of many banks
A provincial association has many branches and various business types and with the annual budget being unable to be unified across the banks, the head office is unable to show comprehensive statistics. Therefore, the association has decided to construct a comprehensive budget management system. With many successful cases for banks in the country, and other factors such as the ability to exceed customer expectations, quality of its business teams and the experience of its delivery team, Sunline has won the association’s operating budget management system project in mid-August 2022.
The comprehensive budget management system is independently developed by Sunline based on years of experience in the financial industry, combined with the knowledge on business characteristics and business needs of China's financial industry. The system can quickly build a complex and complete budget management model based on the actual business management needs of financial enterprises, realizing the whole process of budget management from strategic goal decomposition, budget preparation, budget summary to execution monitoring, budget analysis and assessment. With the features of flexible configuration and convenient use, the system can meet the complex, diverse and personalized needs of the budget management for financial enterprises.
Through the construction of a comprehensive budget management system, Sunline will help the customer summarize the operating budgets of each branch and group in a unified manner, and make a reasonable group budget preparation, which is convenient for the head office to control and perform unified planning. This time, Sunline cooperated with the provincial-level United Credit Union for the first time in the development of the comprehensive budget management system, which is of special significance for Sunline to expand its business into another market in the future.
Winning the project marks a new starting point, while the launch is an important milestone
Sunline's comprehensive budget management system has been put into production in more than 10 leading city commercial banks, rural commercial banks, and joint-stock banks. Its business scope includes but is not limited to business budget, financial budget, expense budget, capital budget, and capital expenditure budget. It has achieved a good outcome in refined management. Recently, the system has been newly launched in a leading rural commercial bank, and preparing to launch in another joint-stock bank.
After implementing the localized core system with traditional bank database, this leading rural commercial bank took a year to upgrade the comprehensive budget system by means of step-by-step iteration. Focusing on the goal of "tools + application", it has realized the construction of a complete budget management with sound and clear budget organization and management, value-oriented key indicator system, standardized budget preparation model, shared and efficient information management system and other modules.
Through the analysis of the implemented functional modules of the commercial bank, we can get a glimpse of the realization path of Sunline's comprehensive budget management system, aiming to provide some ideas and references for banks and financial institutions in need.
Based on the external economy, market indicators, and inter-bank information, combined with the bank's development strategy, the rural commercial bank's various business lines are simulated by scenario assumptions, including forecasting deposit and loan-to-customer interest rates, FTP interest rates, business development structure, and business development quotas and future business scenarios, so as to simulate and predict business profitability.
Annual budget preparation
The overall preparation of the annual budget covers the business, expense, finance, and capital expenditure budgets of the head office budget, branch budgets, and village bank budgets.
Combining with the current management status of the rural commercial bank, we sorted out the annual budget preparation template and budget preparation process suitable for the current situation, realized the online budget preparation and centralized financial approval of the branch, and automated the budget summary, which greatly improved the standardization of the budget preparation process. and efficiency.
In addition, the preparation process realizes the transformation and unity of the business context and the financial context, making it easier to form a consensus on the budget results.
Budget release and control
The functional module of budget release includes functions such as pre-release, final release, release query, etc., which visually displays the expense indicators after the event, helping the rural commercial bank to achieve scientific management and control. In addition, this module opens up the financial system to form a closed-loop model, realizes the linkage between systems, regulates the management and control of financial reimbursement, and achieves pre-forecasting, in-process control, and post-event analysis.
The combination of rigidity and flexibility in budget management is reflected in the complementarity of rigid annual budgets and flexible rolling budgets. The rigidity of annual budgets is reflected in the setting of performance appraisal benchmarks, the formulation of countermeasures and action plans, and the allocation of resources while the flexibility of rolling budgets is reflected in the orderly coordination of the daily control and the handling of changes will help the rural commercial bank to advance its work in a more standardized and orderly manner.
The budget analysis function is divided into two aspects: report display and visualization. By realizing the visualization and concreteness of data display, the managers of the bank can have a clear overview of the overall situation at a glance, be clear of the gap between execution and goals and provide support for relevant decision-making.
Budget management workbench
The budget workbench involves functions such as workflow, task flow, approval flow, tasks to be prepared and approved, budget warning, etc. This module can solve the management pain points of the rural commercial bank's chaotic tasks, achieve efficient connection between subordinate and subordinate businesses, and clarify responsibilities at all levels. Among them, the budget early warning is like a monitoring tool that regularly sends early warnings for delayed and missed work tasks, effectively supervises the progress of the work, and improves the overall work efficiency in an all-rounded way.
Through the construction of the comprehensive budget management system, the financial analysis and decision-making support capabilities of the rural commercial bank’s head office and the preparation and analysis efficiency of the budget management of the whole bank have been comprehensively improved, doubling efficiency improvement of "decision-making" and "management", thus enhancing the implementation of the bank's strategy. The ability of landing and scientific management can effectively support its future strategic development and transformation.
Comprehensive budget management is the starting point of the bank's refined management, and it is an effective strategy for China's commercial banks to improve their core competitiveness and development benefits. Sunline has always insisted on independent research and development as well as deep understanding in the industry. The excellent market performance is a strong testimony to the continuous progress and the company will continue to use lean innovation to improve the bank's comprehensive decision-making ability, boost the bank's stable operation, and finally realize the bank's strategy.