Established in 1987, China Merchants Bank was China’s first joint-stock commercial bank. Since its inception, the bank has grown from one branch with 30 employees and capital of US$15.7 million (100 million yuan), into a nationwide organization with 900 branches, more than 50,000 employees, and a net capital of US$31.4 billion (200 billion yuan), plus assets worth US$441 billion (2.8 trillion yuan). China Merchants Bank is ranked 60 in the world’s top 1,000 banks by The Banker magazine.
Like many institutions affected by the global financial crisis, China Merchants Bank is focused on improving operations by reducing capital consumption, increasing loan pricing, controlling costs, managing risk, and winning and retaining customers. To achieve these tasks, the bank built a budget management system based on Oracle Hyperion Planning. As a result, China Merchants Bank has improved the efficiency and quality of its budget preparation by reducing the manual effort required to develop budgets by more than 80%. Oracle Hyperion Planning’s comprehensive features are also supporting senior managers in making responsive and well-informed budget decisions.
China Merchants Bank evaluated a range of budget control software from vendors, such as SAP and Oracle. The bank chose Oracle Hyperion Planning after discovering the solution was widely used and accepted in the global financial industry, due to its flexible, interactive interface for financial analysts, as well as its user-friendly architecture for developers, which makes it easy to maintain and upgrade the system.
In addition, Oracle Hyperion Planning has a range of features essential for budget management systems in the financial sector, including built-in budget management processes, version control, forecast model setups, and rolling prediction capabilities.
In March 2010, China Merchants Bank began deploying the Oracle Hyperion Planning budget management system. The implementation was divided into three phases: business consulting, system implementation, and system cutover and optimization.
The system covers budget preparation, distribution, adjustment, and analysis; and it provides target calculation, monthly prediction, annual budget adjustment, and other features. The bank went live on the system in September 2011.
China Merchants Bank engaged Oracle Diamond Partner IBM Global Business Services to help implement Oracle Hyperion Planning. IBM was responsible for designing the budget management framework by reviewing and analyzing the bank’s business requirements, and developing near- and long-term transformation roadmaps.
IBM also designed the budget preparation, submission, and analysis platform; created multi-dimensional budget models; standardized budget management processes; and developed interfaces between the budget management system and the bank’s business information systems, such as its core banking system.