Business Intelligence and MIS Solution

separatesnottySoftware and s/w Development

Nov 25, 2013 (3 years and 4 months ago)

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Mortgage Banking


Business Intelligence and MIS Solution

2

Outline


Introduction
-

Who we are


3

Introduction


Who we are


Orbit Systems is a Columbus, OH based Business Intelligence company


Business domain expertise in Financial Services, Healthcare and Retail


Dedicated practice with trained & certified BI professionals including
Data Warehouse architects, ETL/Report developers & SME


Strategic partnerships


IBM, Oracle, Informatica


Cater to Fortune 500 clients



Our recent experience of successful business intelligence implementation at
Chase Home Finance gives us a strong foothold in the MBBI domain. We have the
domain knowledge as well as the technical expertise to make it happen. We
know the reporting needs of a Mortgage company, what is needed by their
management to make business decisions in this fast changing environment.

4

Introduction


What we do


We implement custom tailored Business Intelligence solution


Not just technical solution. We bring business knowledge


We implement BI solution that bridges the gap between management
and daily operations & provides single point of access for reporting


A solution for everyone in the organization
(Right tools for the right user)
:


Executives
-

Our analytics helps business decision
-
makers analyze reliable, timely
information on day to day business activities


Power Users
-

Analysts focus on analysis not on data gathering.


Operations


We build Workflow management tools to:


Drive operational efficiencies


Save cost by additional visibility on expense


Accelerated time
-
to
-
results with Orbit’s domain knowledge of the
mortgage industry combined with technical expertise

5

Introduction


How do we do IT


Custom tailored solution catered to client needs

1.
GAP Analysis => Recommend Solution => Phased implementation







2.
Get down to business => Iterative Approach (Spiral)



6

Introduction


Approach

7

Mortgage Banking


People are feeling the pain


Rates are all time low


Higher focus of cost savings


Changing business landscape => drives better understand the business


Focus on “Do more with less”; Higher productivity and efficiency


Government initiatives & regulations & audit
scrutiny


Mergers and acquisitions


Bankruptcy and fear in the environment


Risk : Credit risk : consumer and bank


Mortgage and servicing valuation


Loss Reserves calculations,


Capacity Models


Staffing (ABC models)


8

Mortgage Banking


Loss Mitigation and mortgage modification


MHA


Making house affordable,


TMQ
-

Trial Modification Qualifier


Collections (inbound and outbound) tracking


Call Center metrics


mortgage companies have data scattered

in different forms and systems


The combination of compliance requirements, a competitive business environment, the sub
-
prime credit crunch and the need for stronger management will drive retail banks'
investment in business intelligence software.


Furthermore, ever
-
increasing regulatory pressures on financial services companies make it
all the more important for banks to have risk management, fraud prevention, and anti
-
money laundering systems in place.


The need for comprehensive Business Intelligence in Mortgage industry is now needed more
than ever. The dynamic nature of mortgage business requires timely access to accurate
information which is consistent throughout the organization.


Interest rate changes: Affects call volume, payoffs and loan originations.


Federal Initiatives: Affects on mortgage modifications, and delinquent loans.

9

Business Intelligence


Drive Business Performance


Higher Business value


Cost savings / analysis


36 percent of managers state that they have the right information available to them to run
their business


without the right analysis, reporting tools and simplified access


integrates the mortgage company’s own data and provides a unified business intelligence


Provide data collection mechanisms


standardized reports that deliver insight


Visibility into business operations


bridges gaps between management and operational


Multi
-
tiered reporting in one solution


Data integrity and consistency of reports and metrics


Focus on BI Architecture , not data warehouse (technical) architecture


10

Business Intelligence
-

MIS


Better risk analysis based on:


LTV geographic location


Property Valuations


Credit Ratings


Performance based incentive


Loan Analysis by Channel


Broker vs. Self


Gain insights quickly

View your key business drivers from a single source through the Cognos
ReportNet dashboard.


it tracks and monitors operational risk, and provides a more sophisticated and consolidated
picture of risk exposure across all LOBs

To secure the reports they need, these managers often

have to work extensively with their IT departments, sacrificing

both time and opportunity.


Interest rate movements.


Pipeline volumes.


Processing efficiency.


Performance by region and broker.


Customer satisfaction.

11

Success Stories
-

Challenge


Numerous data silos throughout business areas


Data scattered in multiple forms


MS Access, excel, emails.


Data consistency (or lack thereof)


Everyone had different number to report, human error


Low Customer Satisfaction due to lack of accountability


Lower customer loyalty due to lack of data access in customer relations group


Higher customer escalated complaints


Low self service channel utilization (e.g. IVR, Web)


Higher workforce attrition resulting in lower productivity and efficiency


Access to consistent information for rating agencies and PMSR valuations


Unmanageable T & E expenses


No financial oversight on the staffing process


No financial accountability on operational manager


Misalignment / distributed BI environment


12

Success Stories
-

Challenge


Lack of intelligence on customer contacts


Lack of analytics on collector / banker / call center behavior



13

Success Stories
-

Solution


Facilitated merger activity


Consistent reporting for call centers across


Drove accurate headcount forecasting by Product and Channel


Visibility into staffing process resulting in lower headcount expense


Reduced repeat caller volume


Provided mechanism to allocate expenses across business units based on drivers


Drive better data capture via business process improvements


Created workflow management systems (CSTS, ERT, ERG)


Web based report delivery system


Report usage tracking




ALL YOUR REPORTS: ONE INTERFACE



support financial analysis, customer intelligence systems and more formalized performance
and risk management, have all collectively become an important organizational imperative.


This has resulted in a focus on establishing efficient sales channels, improving the quality of
customer service and maintaining high levels of customer retention. A front
-
office focus
means that distribution channels and customer relationships
-

cross/up
-
selling and the
ability to search for new potential growth segments
-

are becoming increasingly critical to a
bank's success. This requires an improved and more complete understanding of the
consumers of banking services, and the ability to act on that information.

14

Success Stories
-

Solution

15

Mortgage BI
-

Implementation


Consolidation of data into single repository


Data cleansing


data integration, metadata management, and data store infrastructure will be vital to
create this comprehensive view

16

BI Architecture

Mortgage Banking
Data Warehouse
OLAP Cubes
Analytical
Reports
Standardized
Reports
Ad hoc
Reports
IVR
Call Quality
Workforce Mgmt
CMS
Call Center
Customer
Satisfaction
Customer Metrics
CRM
Cards
Auto
Other LOB
Workflow
Mgmt
Business Apps
Forecasting
Planning
Financial
EDW
Enterprise Applications
HRMS
Accounting
Other Sources
External
Vendors
Manual
Feeds
Downstream
Systems
Servicing
Default
REO / Losses
Collections
Originations
Portfolio
17

BI Architecture

Mortgage Banking
Data Warehouse
Performance
Mart
MARKETING
- Cross Sell Opportunities
- Marketing Campaigns
- Churn Analysis
- Zone Analysis
- Segmentation
CREDIT RISK
- Cross LOB Risk Analysis
- Early Warning Indicators
- Consumer Credit Risk Analysis
Finance
Mart
Call Center
Mart
Customer
Mart
Product
Mart
PRODUCT MGMT
- Product Profitability
- Portfolio Analysis
- Channel Reporting
CREDIT RISK
- Cross LOB Risk Analysis
- Product Risk Analysis
EXECUTIVE
- Dashboards
- KPI Analysis
- Business Reviews
- Rating Agencies
OPERATIONS
- Scorecards
- Performance Trending
- Initiatives
FINANCIAL ANALYSIS
- Actual / Forecast Analysis
- Headcount Reporting
- Workforce Planning
- P & L Statements
- Balance Sheet
- Planning Initiatives
OPERATIONS
- Call Analytics
- Customer Satisfaction
- Workforce Scheduling
-
-
Cross Sectional Analytics : Customer / Product Affinity, Cross LOB Analysis, Operation / Finance Analysis, Co relational Analytics
18

BI Solution


Analytical Reporting


OLAP Cubes


Call Center Metrics


Portfolio Tracking


Financial (P&L and Balance Sheet)


Headcount


Default Portfolio Tracking


Bankruptcy & Foreclosure


Collections


Loss Mitigation / Losses


Payment to Vendors


Business View for Power Users

19

BI Solution


Operational Reporting


Daily Delinquency Trends


Pipeline reports by products


Daily Waterfall


Volume and UPB trends by lien an LTV


Daily Potential Delinquency Reports (POTS)


Daily REO aging report


Good Bank / Bad Bank Reporting


Escrow Administration


Hazard insurance reporting


Performance Reviews (PMAC Scores)


Portfolio Trends (Different Portfolio, Loan Type cuts)


Delinquency (Outstanding, 1
-
29, 30+ buckets)


Roll Rates (30
-
59, 60
-
89, etc…)


Loss Analysis
-

Loss Composition, Writedowns, Loss Severity, Short Sale / Settlements


Inventories


Foreclosures, Bankruptcy, REO


Loss Mitigation


Modifications, Forbearance, Reinstated, Deed in Lieu, Short Payoff

20

BI Solution


Analytical Reporting



Non
-
performing assets as a percentage of receivables


Net charge
-
offs as a percentage of average receivables


Reserves as a percentage of receivables


Provisions and net charge
-
offs


Aging of advances


Financial quantification of default pipeline


Reserve level analysis based on historical loss data and comparisons to risk pipeline


Occupancy status


Fraud Prevention


Check verification, dormant accounts,


Cross Sell management, incentives, tracking, compensation


Owned vs. non
-
owned portfolio analysis


21

BI Solution

Executive Reporting



Business Reviews



Site Scorecards,



Historical Trends, comparisons



MBA & Rating Agency Reviews



JDPower Metrics



Product Profitability



Real Time Unified Dashboard



Attrition Reporting



P & E and KPI



Merger / Integration





22

Introduction


Approach

Phase1:KickoffWorkshop:Theworkshopwillinitiatetheengagement.Theonedaywork
-
shopwillinvolveahighlevelunderstandingoftheclient’sstrategy,expectations,validat
ionoftheagendaandappointmentoftheclient’scontacts(projectparticipants)forinte
rviews.

Phase2:StudyandResearch:InphasetwoPolariswillperformacomprehensiveinventoryasse
ssmentstudy,understandtheclient’sbusinessplans,productgapsandtechnologyrequi
rementscross10days.

Phase3:AnalysisandBlueprintDevelopment:InphasethreePolariswillanalyzetheinformati
ongatheredtocomeupwithrecommendationsfortheclient,theoverallblue
-
printforthedeploymentoftheproduct,effortforthegapsandprioritization(4days

overlapwithPhase2)

Phase4:
FinalPresentation:
ThePolaristeamwillpresentitsanalysisandfindingsanddiscussthesamewi
ththeclientandincorporatetheirfeedback.Thiswillbeatwoworkingdayprocess.