2015 Teradata 大数据峰会·深圳

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The EDW - a key tool for Sberbank business transformation Gennady Shilov Head of EDW Program Sberbank of Russia

8 May 2015 Shenzhen

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1.  About Sberbank

2.  THE 1ST PHASE OF SBERBANK TRANSFORMATION: 2009-2014

3.  HOW THE EDW WAS BUILT AND ITS ROLE IN THE TRANSFORMATION

4.  THE CURRENT STATE OF THE EDW

5.  THE 2ND PHASE OF SBERBANK TRANSFORMATION: 2014-2018

6.  DATA DRIVEN DECISION MAKING

7.  THE NEW CHALLENGES TO THE EDW

Agenda

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SBERBANK RUSSIAN AGRICULTURAL

BANK

VTB ALL OTHER BANKS

Sberbank: Largest in Russia by any measure

~110 MILLION RETAIL CUSTOMERS >1.0 MILLION CORPORATE CUSTOMERS INCL. SME >90,000 ATMS AND SELF-SERVICE TERMINALS >85.5% RETAIL TXNS EXECUTED VIA REMOTE CHANNELS >2 BILLION TXNS PROCESSED FOR RETAIL CUSTOMERS ANNUALLY ~4 MILLION VISITORS TO SBERBANK’S OUTLETS DAILY >19 MILLION ACTIVE MOBILE BANKING USERS >15 MILLION SBERBANK ONLINE ACTIVE USERS

SOURCES: ROSSTAT, SBERBANK’S OPERATING STATISTICS, SBERBANK CALCULATIONS BASED ON CBR STATISTICS AND DATA UNDER RAS AS OF DEC 31 2014, CBR DATA AS OF OCT 1 2014

# OF BRANCHES, Q3 2014

45.0%

29.1% 32.5%

35.0% 35.9%

Retail deposits Assets Credit cards Corporate loans Retail loans

SHARE OF RUSSIAN BANKING MARKET, Q4 2014

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CENTRAL & EASTERN EUROPE

SBERBANK EUROPE (FORMER VBI) •  100% stake •  3.6% of Group’s assets •  Headquarters in Austria; 294 branches & subsidiaries

in Croatia, Czech Republic, Slovakia, Bosnia, Hungary, Slovenia, Serbia, Ukraine, Austria, Germany (direct bank)

Sberbank: Broad Geographical Coverage

KAZAKHSTAN

SB JSC SBERBANK •  100% stake •  1.6% of Group’s assets •  #4 by assets •  7.9% market share by assets

UKRAINE

SBERBANK OF RUSSIA JSC •  100% stake •  0.6% of Group’s assets •  #8 by assets •  3.3% market share by assets

BELARUS

JSC BPS-SBERBANK •  97.9% stake •  0.7% of Group’s assets •  #3 by assets •  10% market share by assets

TURKEY

DENIZBANK AS •  99.85% stake •  8% of Group’s assets •  ~ 713 branches, 3 357 ATMs, 126 863 POS terminals •  #8 by assets, (~4.9% market share)

SOURCE: SBERBANK’S UNAUDITED QUARTERLY IFRS STATEMENTS FOR 9M 2014. SBERBANK’S AND SUBSIDIARIES’ RANKS AND MARKET SHARES BASED ON THE THE RESPECTIVE CENTRAL BANKS’ DATA

•  SBERBANK IS #1 BANK IN CENTRAL AND EASTERN EUROPE (THE BANKER, 2014)

•  RUSSIA REMAINS SBERBANK’S KEY FOCUS AND ACCOUNTS FOR 86% OF GROUP’S ASSETS

OTHER INTERNATIONAL SUBSIDIARIES

•  Representative offices in Germany and China •  Branch in India •  Wholly-owned subsidiary in Switzerland

(Sberbank Switzerland AG) •  Trading platforms in London & New York

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V  LOW RATE OF CROSS-SELLING & PROFITABILITY

V  HUGE OPERATIONAL COSTS

V  LOW PRODUCTIVITY

V  POOR SCALABILITY OF BUSINESS PROCESSES

LACK OF UNIFIED BUSINESS PROCESSES

VERY LONG TIME-TO-MARKET

POOR UTILIZATION OF HUGE AMOUNTS OF

CUSTOMER DATA

Sberbank: The 2008 environment

DECENTRALIZED BUSINESS

FUNCTIONS AND OPERATIONS

LOW AUTOMATION LEVEL

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THE MAIN THEME OF THE STRATEGY IS THE CENTRALIZATION OF EVERYTHING

CENTRALIZATION OF MANAGEMENT

CENTRALIZATION OF OPERATIONAL FUNCTIONS

UNIFICATION OF BUSINESS PROCESSES

UNIFIED IT ARCHITECTURE

Sberbank Strategy - First phase: 2009-2014

CENTRALIZATION OF MANAGEMENT REPORTING

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Sberbank: Role of the EDW in the transformation

EDW

SALES PERFORMANCE CROSS-SELLING

PROFITABILITY: CLIENTS

PRODUCTS CHANNELS

RISK ALM

CENTRALIZATION OF MANAGEMENT REPORTING

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THERE WERE 4 TYPES OF BANKING SYSTEMS EACH HAVING 100S OF

INSTANCES

THERE WERE 800 BACK-OFFICE PROCESSING

CENTERS

OPERATIONS CENTRALIZATION

PROGRAM CORE BANKING SYSTEM

CENTRALIZATION

NEW SYSTEMS: ERP

CRM

MDM

Sberbank: Strategy implementation

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HOW WE ARE DEALING WITH THAT :

V  PROGRAM MANAGEMENT

V  DEMAND MANAGEMENT

V  RELEASE MANAGEMENT

V  SANDBOXING

Sberbank: Building the EDW

THE OVERHAUL OF THE BUSINESS MODEL:

V  BUSINESS REQUIREMENTS ARE CHANGING

V  CHANGE IN BUSINESS CAUSES CHANGES TO IT SYSTEMS

V  THE CENTRALIZATION AND CONSOLIDATION OF IT SYSTEMS

V  THE INTRODUCTION OF NEW SYSTEMS

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Sberbank: Building the EDW

PROGRAM MANAGEMENT - MIS/EDW PROGRAM OFFICE

V  MANAGEMENT  OF  INTERNAL  DEPENDENCIES  BETWEEN  THE  MIS  AND  EDW  PROGRAMS  V  MANAGEMENT  OF  EXTERNAL  DEPENDENCIES  BETWEEN  THE  MIS/EDW  AND  OTHER  PROGRAMS  V  REQUESTS  TO  SOURCE  SYSTEM  OWNERS  TO  IMPROVE  THE  QUALITY  OF  THE  DATA  V  GOVERNANCE  FUNCTIONS:  PRINCIPLES,  METHODOLOGIES,  TOOLS,  POLICIES  

DEMAND MANAGEMENT

V  MANAGEMENT  OF  PROJECT  DATA  REQUIREMENTS    V  THE  MAXIMUM  REUSE  OF  THE  DATA  ALREADY  KEPT  IN  THE  EDW  

SANDBOXING

V  INVOLVEMENT  OF  BUSINESS  PEOPLE  V  RAPID  PROTOTYPING  V  REFINEMENT  OF  PROJECT  REQUIREMENTS  

RELEASE MANAGEMENT

V  OPTIMAL  PACKAGING  OF  PROJECTS  INTO  RELEASES  V  DECREASE  OF  DEPENDENCIES  BETWEEN  PROJECTS  V  WENT  FROM  6-­‐MONTH  CYCLE  TO  2-­‐WEEK  CYCLE  

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The EDW: Some numbers

> 30 SOURCE SYSTEMS

30 PROJECTS DONE BY 7 COMPANIES

DATA ON > 100 MILLION RETAIL CUSTOMERS

> 260 TB OF DATA ON PRODUCTION

> 140 TB OF DATA IN THE CORE MODEL

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22+11 TERADATA 6750H NODES

The EDW: The technology

PRODUCTION SYSTEM

22+22 TERADATA 6650H NODES UAT SYSTEM

11+11 TERADATA 6650H NODES SIT SYSTEM

8+8 TERADATA 6650H NODES DEVELOPMENT SYSTEM

INFORMATICA ETL TOOL

SAP BUSINESS OBJECTS BI TOOL

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The EDW: The business

MIS REPORTING

V  PROFITABILITY  OF  THE  CORPORATE  AND  RETAIL  LINES  OF  BUSINESS:  CUSTOMERS  &  SEGMENTS,  GEOGRAPHY,  PRODUCTS,  CHANNELS  

V  WEEKLY,  MONTHLY,  QUARTERLY  REPORTING  

ASSET AND LIABILITY MANAGEMENT

V  LIQUIDITY  MANAGEMENT  

V  INTEREST  RATE  RISK  MANAGEMENT  

RISK MANAGEMENT

V  CALCULATION  OF  BASEL  II  METRICS  

STAFF PERFORMANCE

V  CALCULATION  OF  BONUSES  FOR  MASS  POSITIONS  AND  CUSTOMER  MANAGERS  

CROSS-SELL INITIATIVES

V  SOURCE  OF  CUSTOMER  DATA  

V  CUSTOMER  INTELLIGENCE  

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Sberbank Strategy - Second phase: 2014-2018

THE 1ST PHASE ACHIEVED ITS GOALS

THE 2ND PHASE SETS EVEN MORE AMBITIOUS TARGETS

1CLIENT OWNERSHIP: WE  WILL  BUILD  DEEP,  TRUSTING  RELATIONSHIPS  WITH  OUR  CLIENTS  AND  WILL  BECOME  A  USEFUL,  SOMETIMES  INVISIBLE,  BUT  INTEGRAL  PART  OF  THEIR  LIVES    

TEAM AND CULTURE: WE  STRIVE  TO  OUR  PEOPLE  AND  CORPORATE  CULTURE  ONE  OF  OUR  KEY  COMPETITIVE  ADVANTAGES  

TECHNOLOGICAL BREAKTHROUGH: WE  WILL  COMPLETE  THE  TECHNOLOGICAL  MODERNIZATION  OF  THE  BANK  AND  INTEGRATE  CUTTING  EDGE  TECHNOLOGY  AND  INNOVATIONS  INTO  OUR  BUSINESS  

FINANCIAL PERFORMANCE: WE  WILL  IMPROVE  OUR  FINANCIAL  PERFORMANCE  THROUGH  BY  EFFECTIVE  MANAGEMENT  OF  COSTS  AND  THE  RISK  TO  RETURN  RATIO  

MATURE ORGANIZATION: WE  WILL  DEVELOP  ORGANIZATIONAL  AND  MANAGEMENT  SKILLS,  AND  ESTABLISH  PROCESSES  MATCHING  THE  INTERNATIONAL  SCALE  OF  THE  SBERBANK  GROUP  AND  OUR  NEW  AMBITIONS  

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Core strategy themes: Mature Organization – MIS Culture PRINCIPLES OF REGULAR MANAGEMENT

WHAT WHO HOW KPI FEEDBACK

MIS CULTURE - DATA DRIVEN DECISION MAKING

DATA-DRIVEN BUSINESS KNOWLEDGE

SINGLE VERSION OF THE TRUTH. CONSISTENT SET OF METRICS CASCADING DOWN FROM THE BOARD LEVEL TO LOW-LEVEL MANAGERS

 MANAGEMENT BY EXCEPTION

(INCL. FORECASTING)  

EXCEPTION HANDLING ACTIONS

   

ANALYSIS OF ACTIONS TAKEN

SET-UP OF RELEVANT KPIS

COMMON UNDERSTANDING OF ACHIEVEMENTS AND

THEIR CAUSES AT EACH LEVEL

DATA AS SERVICE

MIS TOOLS (NAVIGATOR ETC.)

COVERAGE OF ALL UNITS AND MANAGEMENT AREAS

CALCULATIONS, FORECASTING & METHODOLOGIES

COLLECTION, ORGANIZATION AND PRESENTATION OF DATA; ODS AND EDW

INFORMATIONAL SERVICE

SOURCE DATA CUSTOMER TRANSACTIONS OPERATIONAL

EFFECTIVENESS OPERATING EXPENSES

CORPORATE DATA MANAGEMENT

DATA QUALITY

POLICIES AND STANDARDS

DATA MODELS

OPERATIONAL MODELS

DATA-DRIVEN GOAL-SETTING

TRANSPARENT RESPONSIBILITY BASED

ON FINANCIAL RESULTS

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The EDW/MIS System

Operational Systems

EDW

MIS

MIS Portal

Executive Board Business Units, Regional Banks

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INTRODUCTION OF THE CDO FUNCTION

V  CORPORATE  DATA  STRATEGY  V  DEVELOPMENT  OF  INFORMATION  ARCHITECTURE  V  DATA  QUALITY  MANAGEMENT  V  DELIVERY  OF  INFORMATION  SERVICES  TO  BUSINESS  V  IMPLEMENTATION  OF  INNOVATIONS  IN  INFORMATION  MANAGEMENT  

PERFORMANCE

V  REAL-­‐TIME  ANALYTICS  V  THOUSANDS  OF  USERS  

EXPANSION INTO THE ENTIRE SBERBANK GROUP

V  INTERNATIONAL  SUBSIDIARIES,  RUSSIAN  NON-­‐BANKING  SUBSIDIARIES  

The EDW: new challenges

SUPPORT OF THE LOGICAL EDW CONCEPT

V  COMBINATION  OF  MULTIPLE  TYPES  OF  DATA  REPOSITORIES  TO  SATISFY  SLA  AND  COSTS  CONSIDERATIONS  

V  BIG  DATA  ANALYTICS  

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THANK YOU!

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