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Logical Data Model for Retail Banking

September 6, 2007

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TABLE OF CONTENTS

1 2 3 4

Executive Summary ...............................................................................................................4 Business Architecture .............................................................................................................5 BI-DW System Architecture ....................................................................................................6 Data Architecture ..................................................................................................................7 4.1 4.2 4.3 4.4 Star Schema.................................................................................................................8 Dimensions ................................................................................................................ 16 Measures ................................................................................................................... 20 Bus Matrix.................................................................................................................. 24

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Executive Summary

C-BIA hereby presents Logical Data Model (LDM) for Retail Bank. A brief overview of Bank Business and need for Business Intelligence and Data Warehouse are identified in the Business Architecture. BI-DW System Architecture lists the features of LDM and the components of data architecture namely Star Schemas Dimensions Measures Bus Matrix Data Architecture contains the star schema for each subject. Dimensions & Facts in the Star Schema are detailed out with the respective attributes and measures. A Bus matrix identifying the common dimensions to be conformed across subjects is also detailed.

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Project Assembly Component

Retail Bank Data Warehouse Logical Data Model (LDM) Design

Business Architecture

Overview of Business A retail bank is a commercial institution with several branches across countries. It provides financial services, including issuing money in the form of coins, banknotes or debit cards, receiving deposits of money, lending money and processing transactions. A retail bank accepts deposits from customers and in turn makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as legal tender. Many retail banks offer ancillary financial services to make additional profit; for example: selling insurance products, investment products or stock broking. A retail bank generates a profit from the differential between what level of interest it pays for deposits and other sources of funds, and what level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Services typically offered by banks Although the basic type of services offered by a retail bank depends upon the type of bank and the country, services provided usually include: Taking deposits from their customers and issuing current and savings accounts to individuals and businesses Extending loans to individuals and businesses Cashing cheques Facilitating money transactions such as wire transfers and cashiers checks Issuing credit cards, ATM cards, and debit cards Storing valuables, particularly in a safe deposit box Cashing and distributing bank rolls Consumer & commercial financial advisory services Need for Business Intelligence and Data Warehouse Summary information to assess performance v/s target and benchmark Discover low performing and high performing areas Discover causes of low / high performance Bringing data together for a single point of truth. Make better decisions with timely reports and increased collaboration. Real-time analysis of information on integrated systems. Get instantaneous answers to those "what if" questions Deploy analytical techniques correlation, pareto analysis, trend analysis, distribution analysis

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Project Assembly Component

Retail Bank Data Warehouse Logical Data Model (LDM) Design

BI-DW System Architecture Features of logical data model include: o o o o All entities and relationships among them All attributes for each entity The primary key for each entity Foreign keys (keys identifying the relationship between different entities)

Data architecture o o o o Star/ Snowflake Schemas Dimensions Measures Bus Matrix

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Project Assembly Component

Retail Bank Data Warehouse Logical Data Model (LDM) Design

Data Architecture

Data Architecture for the following subjects related to the operations of a Bank are defined: o o o o o o o o o o o o Customer Profile Deposits Loan Accounts Interest Income Corporate Services Treasury Expenses Profitability Asset Liability Management Human Resource Credit Card ATM

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4.1 Star Schema

Customer Profile

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Deposits

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Loan Accounts

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Corporate Services

Treasury

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Expenses

Profitability

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Asset Liability Management

Human Resources

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Credit Card

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ATM

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4.2 Dimensions

Customer Primary Key: Customer_Key Dimension Customer Attribute Customer Type Customer Relationship Number Household Name Customer Name Address City State ZIP Contact Details Age Group Month Since Account Opened Month Since Account Closed Annual Income Marital Status Gender Education Occupation Credit Rating Hierarchy Country State City ZIP Code Customer Type Household Name CR Nu m be r

Location Primary Key: Location_Key Dimension Location Attribute Country State City name ZIP Code Region Zone Branch Type Hierarchy Country State City ZIP Code Region Zone Branch

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Branch Name Type

Service Primary Key: Service_Key Dimension Service Attribute Type Category Subcategory Description Accounts attributes Loan Attributes Deposit attributes many service specific attributes Hierarchy Type Category Subcategory Description

Time Primary Key: Time_Key Dimension Time Attribute Fiscal Year Year Quarter Month Week of month Day Hour Hierarchy Fiscal Year Year Quarter Month Week of month Day Hour

Deposit Primary Key: Deposit_Key Dimension Deposits Attribute Deposit Type Deposit Name Maturity Period Interest Rate Renewal Type Penalty Hierarchy Deposit Type Deposit Name

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Loans Primary Key: Loans_Key Dimension Loan Attribute Loan Type Loan Name Loan Term Interest Rate Pre-Payment Penalty Repayment Periodicity Total Duration Hierarchy Loan Type Loan Name

Corporate Service Primary Key: CorpService_Key Dimension Corporate Service Attribute Service Type Service Name Service Period Other Service Specific attributes Hierarchy Service Type Service Name

Treasury Primary Key: Investment_Key Dimension Investment Attribute Investment Type Investment Name Investment Period Interest Rate Hierarchy Investment Type Investment Name

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Expenses Primary Key: Expense_Key Dimension Expense Attribute Expense Head Expense Type Expense Name Hierarchy Expense Head Expense Type Expense Name

Asset Liability management Primary Key: Asset_Liability_Key Dimension ALM Attribute Asset Liability type Asset Liability name Asset Liability indicator ALM specific attributes Hierarchy Asset Liability Type Asset Liability Name

Credit Card Primary Key: creditcard_Key Dimension Credit Card Attribute Credit Card Type Credit Card No. Issue Date Expiry Date Billing Cycle Loyalty Points Interest Rate Credit Withdrawal Limit Cash Withdrawal Limit Hierarchy Credit Card Type Credit Card No.

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4.3 Measures

Customer Profile Primary Key: custprofilefact_key Foreign Keys: Customer_key, Location_key, Time_key, service_key, status_key, acno_key Measure Customer Count Closing Balance Interest Payable No. of withdrawals No. of deposits No. of Transactions Total Deposit amount Total Withdrawal amount Total loan amount Calculated Measures Customer Turnover Average Revenue per customer No. of new customers acquired Avg. No. of Transactions per customer No. of Inactive Customers % Loan to Deposits Customer profitability

Deposits Primary Key: depositfact_key Foreign Keys: Customer_key, Location_key, Time_key, deposit_key, status_key, acno_key Measure No. of Deposits Interest Rate Deposit Amount opening balance Deposit Amount closing balance Transaction cost Transaction charges levied Calculated Measures No. of Accounts No. of Active Accounts Avg. period of deposits No. of Fixed Deposits Total Deposit Fixed deposits % to total deposits Monthly average deposit Avg. deposit per branch

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Loans & Interest Amount Primary Key: loanfact_key Foreign Keys: Customer_key, Location_key, Time_key, loantype_key, status_key, acno_key Measure Loan Amount Interest Amount Recovered Amount Loan Amount Disbursed No. of loans Disbursed Interest Accrued Total Repayment Overdue Amount Current Balance No. of Paid Installments Calculated Measures No. of Loan Accounts Average loan amount per branch (Rs. Lakhs) Current Recovery Rate per Branch % No. of Non-Performing Assets No. of Installments Due % Non-Performing Assets No. of Overdue Installments

Corporate Services Primary Key: CorpServicefact_key Foreign Keys: Customer_key, Location_key, Time_key, servicetype_key Measure Service Charge No. of Transactions Transaction Value Total Debits Total Credits Overdraft Limit Overdraft utilised Calculated Measures Avg yield per service Avg. revenue per Corporate customer No. of New customers No. of transactions per customer No. of transactions per service type % Overdraft limit utilised

Treasury Primary Key: Treasuryfact_key Foreign Keys: Time_key, Investment_key Measure Investment Amount Income earned Period of Investment Calculated Measures Amount invested in market instruments (Rs. In Lakhs) % Return on Investments % Foreign currency earnings

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Foreign Currency earnings

Expense Primary Key: Expensefact_key Foreign Keys: Account_key, Location_key, Time_key, Expense_key Measure Variable Overheads Fixed Overheads Expense Amount Calculated Measures Total Overheads (Rs. In Lakhs) % Fixed Overheads

Asset Liability Management Primary Key: ALM_key Foreign Keys: Location_key, Time_key, Measure Credit Amount Investment Amount Loan Amount Total Capital Total Assets Total Liability Credit risk Maturity gap Duration gap Calculated Measures Credit ratio Market risk Liquidity risk Interest rate risk Risk-adjusted-return-on-capital (RAROC) Funds Transfer pricing Assets % of liabilities

Profitability Primary Key: profitabilityfact_key Foreign Keys: Account_key, Location_key, Time_key, Profitability_key Measure No. of Customers No. of Accounts Total Assets Total Equity Business Income Investment Income Interest given on deposits Calculated Measures Total Expenses Total Income Return on Equity % Investment % of Assets Expense % of Income Avg. expense per customer or /account Gross Profit

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Fixed Expenses Var. Expenses

HR Primary Key: HRfact_key Foreign Keys: Service_key, Location_key, Time_key, Employee_Key Measure No of Customers No of transactions Total value of transactions Cost to Company (CTC) Calculated Measures % Transaction to total transactions in branch % Transaction to total customers in branch Revenue % to Total Revenue Revenue % to Employee Cost

ATM Primary Key: ATMfact_key Foreign Keys: Customer_key, Location_key, Time_key Measure ATM Withdrawals ATM Deposits Transaction Charge No. of ATM Withdrawals No. of ATM Deposits Calculated Measures Avg. transaction value % deposits to withdrawals Avg. no. of transactions

Credit Card Primary Key: creditcardfact_key Foreign Keys: Customer_key, Location_key, Time_key, creditcard_Key Measure Credit Card Withdrawals Credit Card transaction value No. of cash Withdrawals No. of transactions Interest Amount Finance Charge Total Due Amount Minimum Due Amount Calculated Measures Avg. transaction value % deposits to withdrawals Avg. no. of transactions Avg. credit value % overdue to total amount No. of defaulters Non Performing Assets (NPA)

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Paid amount

4.4

Bus Matrix Customer Profile HR Profitability Credit Card Deposits Loans Corporate Services Expenses Treasury Interest Income ATM 24/25 ALM

Subjects

Dimensions Time Customer Location Service Loans Deposits Investment Expenses Corporate Services Asset Liability Mgt. Employee Credit Card

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Syscon Infotech Pvt. Ltd. www.sysconinfotech.com September 2007 SIPL. All other trademarks and logos appearing in this document are the property of their respective owners.

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