"Once we had cooperated on setting down the project specification, the application was parameterized. Product training then ensured that the Unicredit workforce could operate the software completely independently. I'd particularly emphasize Tagetik's ability to find timely solutions to the challenges presented by the customer, while remaining highly accessible at all times." Antonello Baudoino, Consolidated Balance Manager

Project Objectives

Unicredit was looking for a new software solution that would enable them to manage, in a structured way, all of its statutory consolidation processes including the sub-consolidation activities for its Poland, Turkey, Croatia, and Pioneer Group operations. The project was also intended to enable the accounts planning process to be fully restructured so that supervisory signals could be incorporated into the consolidation process. The following areas were covered by the project:

• automated input of data for the major group companies by means of an ETL process
• manual, web-based data input for the other companies
• web-based reconciliation of intercompany accounts
• management of all accounts at both the holding and subholding company level production of all of the spreadsheets needed for the Notes to the Consolidated
• Financial Statement
• Statistical supervisory signals
• Solvency supervisory signals

Project Scope

The Unicredit group operates 600 sets of corporate accounts, of which approximately 160 are consolidated.
There are more than 350 contributors mapped onto the system and of these several have multiple users involved in the data entry process. The consolidated accounts are generated via a "flat" structure, while the Tagetik CPM system is also used for drawing up four consolidated financial statements for each of the subholding companies (Bank Pekao, Koc Finansal, Pioneer, and Zaba).
As well as the information needed for the consolidated accounts and the Notes to the Financial Statement, the data used in producing the statistical and prudential indicators required by the central Banca d'Italia is also collected by means of the Tagetik CPM solution.

Why Tagetik was selected

Unicredit was looking for a technologically advanced and user-friendly web-based solution that included an Excel-based interface for entering input data and displaying output data. Of the solutions available on the market, Tagetik CPM proved itself to be the most flexible, with every stage of the consolidation process fully handled by the user with no need for the involvement of either the Tagetik consultants or in-house IT staff. The processes covered included opening new consolidation areas, adding new companies to the group and removing existing companies, creating new tables for collecting data and for displaying output data, parameterizing the automated consolidation accounts, converting values between currencies, and so forth. In addition, the data input process used with Tagetik CPM is completely web-based and allows data to be collected without any need for software to be installed on the users' machines.

Project Timings

Unicredit selected Tagetik CPM as its new tool for statutory consolidation during the second half-year of 2002. After analyzing and coordinating the model to be used between January and September 2003, the Tagetik team in cooperation with its client developed the interfaces required, and reproduced the 2002 half-yearly and annual consolidated accounts using a "flat" and "staged" methodology. As a result, following staff training Unicredit was able to complete its first set of accounts using the new IT system right away. In September of 2003, the project system went live, allowing Unicredit to close its quarterly accounts and then its 2003 annual accounts using the new software.

Project Outcomes

Unicredit's intention was to change its system of consolidation within a short timeframe by ensuring that the project covered all appropriate organizational and IT requirements. The new software that was introduced enabled the group to achieve significant improvements in terms of data management for system administrators and to reduce the time needed for the entire consolidation process. The process used for reconciling intercompany accounts was also completely restructured from an organizational and IT point of view. Specifically, system administrators now have access to a dashboard that allows them to monitor the process of submitting returns and to view real-time returns for every company on the system. This means they can supervise the entire process while leaving the group companies with the task of reconciling intercompany positions.
The generation of the statistical signals was a side-benefit of the main consolidation process, with a single, integrated accounting plan having been incorporated into the system. This also includes the details needed to produce the M base.

The company

UniCredit Group is the sixth largest banking and financial services organization in the world (the second in Europe) with a network of 7,200 branches and strong local roots in 20 countries. Its international network is made of branches, representative offices and small banking subsidiaries in other 40 countries worldwide. In Europe Unicredit is one of the leaders in terms of business size and can leverage on a unique strategic positioning. The Group is, in fact, leader in one of the richest areas of Europe: Bavaria, Austria and Northern Italy as well as in Central and Eastern Europe.