Flagstar Bank runs routine financial processes 8X faster with Oracle Cloud EPM
Flagstar Bank improves productivity and profitability with faster planning, modeling, and reporting in Oracle Cloud EPM.
“Our financial budgeting and planning processes using Oracle Cloud EPM are streamlined, fast, and flexible. Our staff can easily navigate through the system to get the information they need—no more time-consuming manual inputs and days waiting to see results.”
Business challenges
Flagstar Bank is the United States’ seventh-largest bank mortgage originator and third-largest savings bank. The company is also a leading servicer and subservicer of mortgage loans—handling recordkeeping for around $343 billion in home loans.
Flagstar Bank used Oracle Hyperion Planning on-premises for many years. As the company grew, the system became slower and more cumbersome from inefficient use of data partitioning and replication, which reduced operational efficiencies and staff productivity.
Consolidating and analyzing data required numerous manual workarounds that were time-consuming and increased the risk of errors. Consequently, data visibility was limited, and financial planning, budgeting, and reporting took up a huge amount of time and effort.
The bank decided to upgrade its performance management system to gain stronger performance, agility, scalability, and user-friendliness. Specific aims included streamlining budgeting and planning processes, simplifying data input required from users, speeding up data transfers, and standardizing reporting.
Financial allocations used to be the bane of my existence. Allocations that used to take 90 minutes now run in 10 to 20 minutes.
Why Flagstar Bank chose Oracle
Although Flagstar Bank leaders had been happy with Oracle Hyperion for many years, they decided to migrate to Oracle Cloud Enterprise Performance Management (EPM) because of its high performance, agility, advanced analytics, and scalability.
By upgrading to Oracle Cloud EPM, Flagstar wanted to reduce costs, centralize its finance data, and streamline and speed up financial processes. In addition, Oracle Cloud EPM offers powerful, advanced functionality for the key modules Flagstar Bank wanted to upgrade—financial, workforce, allocation, and reporting. It also integrates seamlessly with other applications the company was already using, such as WorkForce and PeopleSoft.
The bank’s leaders also valued the fact that Oracle rolls out upgrades to its cloud applications to customers in a timely manner, with the option to defer implementation if preferred. This provides a faster and easier route to keeping systems up to date for optimal performance, requiring far less time and effort to review and implement than for on-premises upgrades.
Flagstar Bank increases performance of financial planning processes by 4X using Oracle Cloud EPM.
Results
After implementing Oracle Cloud EPM, Flagstar Bank experienced improved business results almost immediately. By centralizing its finance and accounting data, the company was able to standardize reporting, improve profitability, and lower costs. The move to Oracle Cloud EPM also eliminated manual errors, centralized support to one application, allowed for easier scaling, and reduced the bank’s legacy technology footprint and costs.
Overall performance of the bank’s financial planning processes increased by 4X with Oracle Cloud EPM. Many routine financial processes are now 8X faster, such as Fund Transfer Pricing and expense allocations. Oracle Cloud EPM’s high performance, speed, and agility allows for more efficient and automated workflows, eliminating previous manual workarounds. This improved staff productivity by freeing time and effort to focus on more strategic activities for the bank.
Flagstar Bank now has excellent visibility into its financial performance, with centralized data providing one version of the truth that can be accessed both onsite and off. Oracle Cloud EPM’s advanced data analytics provides standardized data that can be sliced and diced in multiple ways for agile and sophisticated reporting.
Using Oracle EPM SmartPush, new data entries are updated throughout the system in near real time. This makes financial modeling and planning considerably faster and easier, with less chance for error. Users can enter salary data on planned new hires, for example, then instantly view the impact in the profit and loss ledger and adjust plans accordingly.
By minimizing the data input needed from users, and streamlining financial planning, budgeting, and reporting processes, Flagstar Bank has created a user-friendly system that was adopted enthusiastically by the staff. Buoyed by the successful switch to Oracle Cloud EPM, Flagstar Bank is now planning to expand its use of the Oracle Cloud EPM suite of products.
Partners
Flagstar Bank selected Oracle Partner Inspirage, Part of Accenture, to implement Oracle Cloud EPM and migrate from Oracle’s Hyperion on-premises applications. Inspirage, part of Accenture, worked closely with the Flagstar team to ensure the new system and processes were optimized to fulfill their requirements.
“Our team has a phenomenal partnership with Inspirage, part of Accenture, that enabled us to succeed. We appreciate all of the hard work by Inspirage, part of Accenture, on this project,” says Damon Hrydziuszko, first vice president, financial systems manager.
About the customer
Headquartered in Troy, Michigan, Flagstar Bank has over US$18 billion in assets, more than 250 branches and mortgage locations, and over 4,000 employees.