Strengthening Strategy, Risk, and Financial Excellence in the Banking Industry

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1. Introduction: Why EPM Matters More Than Ever for Banks

The banking industry is experiencing one of the most complex operating environments in its history. Global banks and Indonesian financial institutions alike are facing simultaneous pressure from tighter regulations, volatile interest rates, digital disruption, cybersecurity risks, ESG requirements, and rising customer expectations. In such an environment, traditional financial management tools, largely dependent on spreadsheets and fragmented systems, are no longer sufficient. Enterprise Performance Management (EPM) has become a critical foundation for modern banking organizations. EPM enables banks to integrate financial planning, budgeting, forecasting, reporting, and performance analysis into one unified framework. Rather than merely reporting historical performance, EPM empowers banks to become forward-looking institutions, capable of anticipating risks, optimizing capital allocation, and aligning strategy with execution. For Boards of Directors and senior management, EPM is no longer an operational support system. It is a strategic decision-making platform that connects business strategy, regulatory compliance, risk management, and profitability.

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2. Key Global Trends Shaping EPM in the Banking Industry

2.1 Increasing Regulatory and Capital Management Complexity

Globally, banks operate under increasingly sophisticated regulatory frameworks such as Basel III/IV, IFRS 9, stress testing requirements, and liquidity coverage ratios (LCR/NSFR). These regulations demand

• Accurate multi-scenario forecasting

• Transparent audit trails

• Integrated financial and risk data

• Frequent regulatory reporting

EPM systems allow banks to model capital adequacy, credit risk, and profitability simultaneously, ensuring that regulatory compliance does not come at the expense of strategic growth.

2.2 Shift from Static Budgeting to Continuous Forecasting

Traditional annual budgeting is becoming obsolete. Leading global banks are adopting:

• Rolling forecasts

• Driver-based planning

• Scenario-based financial modeling

This allows management to respond quickly to interest rate changes, macroeconomic shifts, and credit quality deterioration. EPM platforms support this transition by enabling flexible assumptions and real-time recalculation across complex banking models.

2.3 Data-Driven and Performance-Oriented Culture

Banks today manage enormous volumes of data, from core banking systems, treasury platforms, risk engines, CRM systems, and external economic indicators. Without a centralized performance layer, this data remains underutilized.

EPM acts as the performance intelligence layer that transforms raw data into meaningful insights such as:

• Product profitability

• Branch and regional performance

• Customer segment analysis

• Risk-adjusted returns (RAROC)

2.4 Integration of Financial and Non-Financial Metrics

Modern banking performance is no longer measured solely by profit. Global institutions increasingly integrate:

• Risk metrics

• ESG indicators

• Operational efficiency KPIs

• Customer experience metrics

EPM provides a unified framework where financial and non-financial performance can be analyzed together, enabling truly balanced scorecards.

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3. The EPM Landscape: Global Best Practices vs Indonesia

3.1 Global Banking EPM Maturity

In advanced markets (Europe, North America, and parts of Asia), banks typically:

• Use integrated EPM platforms across group, subsidiary, and business-unit levels

• Perform automated consolidation and reporting

• Apply driver-based planning and stress testing

• Integrate finance, risk, and strategy

EPM in these institutions is deeply embedded in board-level decision-making.

3.2 Current Situation in Indonesia

In Indonesia, many banks are progressing rapidly but still face structural challenges:

• Heavy reliance on Excel for budgeting and forecasting

• Fragmented data between finance, risk, and business units

• Limited scenario modeling capabilities

• High manual effort during budgeting and regulatory reporting cycles

While core banking systems are relatively strong, the performance management layer often lags behind.

3.3 The Gap and the Opportunity

The gap between global and Indonesian banking EPM maturity represents a major opportunity:

• Faster decision-making through automation

• Improved governance and transparency

• Stronger alignment between strategy and execution

• Better preparedness for OJK regulations and future stress-testing frameworks

Implementing a modern EPM platform allows Indonesian banks to leapfrog stages of maturity rather than evolve slowly through incremental improvements.

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4. How EPM Software Supports Banking Excellence

A modern EPM platform enables banks to:

4.1 Integrated Planning and Budgeting

• Centralized budgeting across branches and business units

• Driver-based models (loan growth, NIM, cost-to-income)

• Top-down and bottom-up alignment

• Version control and approval workflows

4.2 Advanced Forecasting and Scenario Analysis

• Interest rate sensitivity analysis

• Credit growth and NPL scenarios

• Stress testing under macroeconomic shocks

• What-if simulations for strategic decisions

4.3 Financial Consolidation and Reporting

• Faster monthly and quarterly close

• Automated consolidation across entities

• Consistent chart of accounts

• Audit-ready reporting

4.4 Performance Analytics and Management Reporting

• Profitability by product, customer, and region

• Risk-adjusted performance views

• Executive dashboards for management and board

• Single source of truth for decision-making

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5. Board EPM: A Unified Platform for Banking Performance

Board is a leading Enterprise Performance Management platform designed to unify planning, analysis, reporting, and decision-making within a single environment.

Unlike traditional tools, Board combines:

• Financial planning

• Business intelligence

• Predictive analytics

• Workflow and governance

into one integrated platform, particularly well-suited for complex organizations such as banks.

Through its unified architecture, Board enables banks to manage financial, operational, and strategic performance without data fragmentation.

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6. Enhancing Decision-Making with Board Signals and Board Foresight

6.1 Board Signals: Real-Time Performance Awareness

Board Signals provides banks with early-warning indicators and performance monitoring capabilities. It enables management to:

• Detect deviations from targets

• Monitor KPIs in real time

• Identify emerging risks and opportunities

• Support proactive rather than reactive management

For banks, this is particularly valuable in monitoring credit quality, liquidity trends, and operational efficiency.

6.2 Board Foresight: Predictive and Scenario Intelligence

Board Foresight strengthens forward-looking capabilities by enabling:

• Predictive forecasting

• Scenario modelling

• Trend identification

• More accurate assumptions based on historical and external data

This helps banks better anticipate changes in interest rates, loan demand, and economic conditions, supporting stronger strategic planning and capital management.

Together, Signals and Foresight transform EPM from a reporting tool into a true decision intelligence platform.

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7. AI-Augmented FP&A: A Strategic Enhancement

While the core of EPM remains conventional planning and performance management, Board also supports AI-augmented FP&A capabilities as a strategic enhancement.

AI-enabled EPM platforms strengthen the four critical FP&A activities, budgeting, forecasting, planning, and analysis, through:

7.1 Data Preparation and Automation

Complex workflows process large banking data models accurately while allowing flexibility to adjust drivers and assumptions in real time.

7.2 AI Agents for Analysis

AI agents can perform variance analysis and ad-hoc investigations instantly, enabling finance teams to analyze performance from multiple perspectives, while maintaining a single source of truth, unlike disconnected Excel files.

7.3 Scenario Modelling and What-If Analysis

AI-supported scenario modelling helps banks identify trends, anomalies, and potential risks earlier. The integration of external data improves forecast accuracy and alignment with changing economic conditions.

7.4 Automated Reporting and Forecasting

Machine learning capabilities allow automated generation of reports and forecasts, reducing manual effort and accelerating insight delivery.

7.5 Intelligent Data Integration and Decision Support

AI processes data from multiple internal and external sources, reducing redundancy and supporting faster, more informed strategic decisions.

These capabilities complement, rather than replace, the fundamental EPM framework, making finance teams more strategic and less transactional.

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8. The Role of PT. Sazanka Henig Solusi

Successful EPM transformation requires more than technology, it requires expertise, methodology, and industry understanding.

PT. Sazanka Henig Solusi plays a crucial role in supporting organizations through:

• EPM design and implementation

• Banking and financial services modelling

• Performance management best practices

• Integration with existing enterprise systems

With experience across various industries, PT. Sazanka Henig Solusi helps companies translate EPM concepts into practical, value-driven solutions, ensuring that technology delivers measurable business impact.

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9. Conclusion: Building the Future-Ready Bank

In an era of uncertainty and rapid change, banks must evolve from backward-looking financial management toward intelligent, integrated performance management.

Enterprise Performance Management provides the foundation for:

• Stronger governance

• Better regulatory compliance

• Faster and more accurate decision-making

• Sustainable long-term growth

With Board’s unified EPM platform, enhanced by Signals and Foresight, and supported by PT. Sazanka Henig Solusi’s expertise, banks in Indonesia have a powerful opportunity to close the gap with global best practices and build future-ready financial institutions.

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EPM is no longer optional. It is a strategic necessity for banking leadership in the digital age.

Learn more about how Board EPM can transform your leasing operations: www.board.com

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For more information and consultation, contact our expert:

Hananto Pandu SE., S.Kom., Ak., CA., CPA., ASEAN CPA. - 0896 3626 1684

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Best Regards,

Yohannes Ekaputra Sananto SE. MSc.

yohannes.sananto@sazankahenig.com

Financial Product Consultant

PT Sazanka Henig Solusi

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