Improving Efficiency, Compliance & Productivity

with Finance Transformation in Financial

Services

October 29, 2014

Perficient is a leading information technology consulting firm serving clients throughout

North America.

We help clients implement business-driven technology solutions that integrate business

processes, improve worker productivity, increase customer loyalty and create a more agile

enterprise to better respond to new business opportunities.

About Perficient

• Founded in 1997

• Public, NASDAQ: PRFT

• 2013 revenue ~$373 million

• Major market locations throughout North America

• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston,

Indianapolis, Los Angeles, Minneapolis, New Orleans, New

York City, Northern California, Philadelphia, Southern

California, St. Louis, Toronto and Washington, D.C.

• Global delivery centers in China, Europe and India

• >2,200 colleagues

• Dedicated solution practices

• ~90% repeat business rate

• Alliance partnerships with major technology vendors

• Multiple vendor/industry technology and growth awards

Perficient Profile

BUSINESS SOLUTIONS

Business Intelligence

Business Process Management

Customer Experience and CRM

Enterprise Performance Management

Enterprise Resource Planning

Experience Design (XD)

Management Consulting

TECHNOLOGY SOLUTIONS

Business Integration/SOA

Cloud Services

Commerce

Content Management

Custom Application Development

Education

Information Management

Mobile Platforms

Platform Integration

Portal & Social

Our Solutions Expertise

Industry Driven SolutionsG

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ve

ry C

en

ters

/Off

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ore

De

live

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Deep Financial Services Domain Expertise

Strategic Partners

Deep Financial Services Domain Expertise

BANKINGWholesale

Consumer

Credit Unions

Payment Processing

Trust & Custody

Trade Services

Treasury Services

ASSET & WEALTHMANAGEMENTEquities & Fixed Income

Private Equity & Real Assets

OMS & EMS

Research Analytics

Portfolio Modeling

Portfolio Accounting

Performance & Reporting

CAPITALMARKETS

Equities & Fixed Income

FX & Commodities

Future & Options

Electronic Trading

INSURANCEInvestments

Customer Acquisition

Compliance & Risk Strategies

Property & Casualty

Life Annuities Services

Claims Evaluation

Underwriting

Consumer Direct

Business/

Technology Solution

Rationalization

and Delivery

Business Process

Improvement

Program Value,

Quality and

Cost Management

Client

Centricity

Risk and Regulatory

Compliance

Finance

Transformation

Solutions & Services

Presenter

Sanjay BalanDirector of Financial Services, Perficient

Sanjay Balan has more than 20 years of experience in the

financial services industry advising a large cross-section of clients

across capital markets, banking, asset and wealth

management. He is a director in Perficient’s Financial Services

practice and the industry leader for the finance transformation

competency that provides consulting services covering the full

lifecycle of the accounting process.

Historical View of Finance Function

• Consolidating financial information within

the general ledger (GL)

• Reconciling data

• Reporting to internal stakeholders and

external entities

Issues & Business Drivers

Global Accounting Policy

• Current back office clearance and

settlement systems have accounting rules

embedded within them with limited

transparency

• Some systems are fully integrated from

front to back offices, accounting rules and

GLs that provide very little documentation

on the exact accounting rule

• Accounting rules are created multiple

times for the same transaction type

globally

• Rules may be hard-coded into programs

and spreadsheets that directly feed the

global GL

• Conform to IFRS regulations

Issues & Business Drivers

Accelerating the Financial Close

• Many manual processes in the financial close originate in the front to back-office areas, which need to be addressed to drive accelerated close

• Inconsistent reconciliation model across locations and lines of business resulting in time consuming processes affecting the close cycle

• Transparency issues due to “legacy black boxes” in interfaces, transformation engines, back office systems

• Many different chart of accounts are costly to maintain adding to bottlenecks and reduced benefits realization from platform improvement efforts

Issues & Business Drivers

Regulatory Reporting Needs

• The increased regulatory landscape in

financial services has required various

reports (FR Y-9C, Call Report, FOCUS,

CCAR Y-14s, 10K, 10Q, etc.) to be

created and published on a periodic

basis to regulatory agencies

• Management reporting – controller

dashboards and financial analytics

increases the need to have a single

source of information for all data

consumption needs

The Changing Face of Finance

Expanded Responsibilities

• Larger, more complex and vastly

more critical function in financial

services

• Purview of corporate finance

extends long before GL processing

and ends long after reconciliation

• Far less linear and more

intertwined process

• Shift to a global accounting policy

• Ongoing regulatory demands

Finance Processes, Functions &

Key Stakeholders

Source: Forrester Research Finance Transformation: A Practical Guide to Streamlining Finance Functions That Pay Off

What is

the

Opportunity?

The New Corporate Finance Agenda

What is Finance Transformation?

Enterprise-wide “change” designed to

help finance organizations with:

• Inefficient, manual processes

• Disparate systems & data structures

• Complex organizational structures

• New business demands

• Regulatory reporting requirements

Goal: More streamlined, data-driven and

regulated environment that delivers value

to the organization.

Realizing Financial Success

P E O P L E P R O C E S S T E C H N O L O G Y

Finance Transformation programs require a systematic plan that

understands the current state of people, processes and technology

10/29/2014 17

Implementing technology alone

without considering needed

process or organizational

structure changes will not

achieve the desired

transformation objectives or

target operating model.

How to Initiate a Finance

Transformation Program

Business Process Reengineering

The New Finance Operating Model

Finance Transformation Services

• End-to-end process mapping

– Across product systems providing data to the general ledger,

including: accounting rules specific to equities, fixed-income,

FX, derivatives, options

• Sub-ledger architecture, general ledger implementation,

reconciliation, and consolidation

• Post-general ledger financial data warehouse for:

– Management

– Compliance

– Financial reporting

– Risk

Please enter your questions into

the chat box.

Download our new digital series Transform for Tomorrow:

Navigating New Forces in Financial Services:

http://www2.perficient.com/transform-for-tomorrow

@ P E R F I C I E N T _ F S