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Next-level planning for banking

Start today, predict tomorrow

New tools, more data, more computing power – it’s a potent mix with the potential to transform planning. No longer a routine finance cycle, now a way to spot the opportunities to outcompete. The power to predict may be closer than you think – how will you modernise your planning capability?

Banks are facing great challenges in today’s economy: high inflation, rising interest rates, risk of recession, and declining asset values. After a decade of stable conditions, a tumultuous environment lies ahead. How can you accurately forecast your results with so many variables and potential outcomes? How can you safeguard your business from rising default ratios and steer it towards success in these volatile times?

Planning is not so simple anymore, and your finance teams need all the help they can get. Fortunately, recent advances in technology and data science can help you tackle these challenges head-on. Read on to find out how you can take your planning to the next level!

How has planning evolved over the years?

Traditionally, planning was a mechanical, finance-driven exercise. Send the Excel to the business, fill-out the numbers, return, consolidate. The process lacked transparency. Sometimes, it was based on inconsistent assumptions, as business areas toiled away in their silos, meaning the bank-wide picture was unreliable. Often, the plan was out of date almost before it came into use. We see some banks still working in this set-up, but we also see a refreshing ambition from CFOs to change it.

Connected (or integrated) planning serves that ambition. Thanks to new, cloud-based software, it is now possible for the entire organisation to collaborate on one internally consistent set of numbers. Silos are history. The impact of an action by one function can be seen across the whole business. For instance, updated IT cost allocations are instantaneously reflected in wealth management's profitability forecast. The planning cycle is compressed, and fewer iterations are needed.

Not all banks are there yet. Some urge caution around implementation effort and licence cost. Those that have made the switch see the benefits - improved speed and accuracy, which frees up more time to explore alternative planning scenarios.

But connected planning is only part of what is possible. The volume of data available to inform planning continues to grow. Coupled with the on-demand availability of cloud-based computing power, this provides the capability for the next phase of the planning transformation. The era of predictive planning is upon us.

This form of planning leverages historical data and algorithms to make data-driven predictions. Modern planning tools already have some of these functions built in. There are different ways to integrate them in your forecasting process. Initially, finance teams can use preset algorithms to generate forecasts and use them to improve their own. Visionary organisations aim higher. With more sophisticated machine learning algorithms and automated data pipelines, forecasts become faster and more accurate. Full automation is possible, with the machine-generated forecast needing little to no human enrichment.

Leveraging the power of data

Banks possess an ever-increasing amount of data, and technology allows us to use it. Predictions do not need to be limited to internal data – external data can further improve the accuracy of your predictions.

Predictive planning – your edge over competitors

The Deloitte ‘Global planning, budgeting and forecasting survey’ shows that 30 per cent of organisations are still using only spreadsheets to prepare plans, budgets and forecasts. However, more and more of them are adopting Software as a Service (SaaS) tools, such as Anaplan or Oracle, and reaping the benefits of continuous updates without the need for costly rollouts.

We believe that such cloud-based solutions, combined with predictive algorithms, are a must-have to succeed in today’s hypercompetitive environment. From a short-term perspective, they allow you to not only reduce your cost of finance but also to attract better talent. Inefficient manual processes and antiquated tools will put off the best finance talent and drive them straight into the arms of your competitors.

In the long run, better predictions enable better decision-making, which in turn leads to improved financial outcomes. By being able to analyse the potential outcomes of many different scenarios at a low cost, you can choose the best course of action. For example, you can shift resources to better address your client base in specific segments or take corrective action on a bad loan before it’s too late. Banks that embrace predictive planning are better equipped to tackle the challenges of today’s fast-paced environment.


Let’s explore an example of how you can apply advanced analytics to Assets under Management (AuM) planning to mitigate negative outcomes or even prevent them. Our 4-step approach will guide you along the journey. Click on each step to follow it.

Where could you apply predictive planning?

Predictive planning does not need to be a finance-only exercise. The whole bank can benefit. Although common use cases of connected and predictive planning are focused on the Finance function, next-level planning can also be implemented in other areas of the bank. Front Office, Risk, Compliance and Human Resources can all benefit from a wide range of use cases, such as scenario modelling or compensation planning.

At Deloitte, we have a collection of accelerators that can help address your business challenge. For example, Deloitte’s Banking Strategic Financial Planning app connects the dots between finance and risk, adapting to the specifics of your business. It enables better, informed decision-making and efficiency gains in the overall planning process.

Which tools are available on the market?

We know that choosing the best tool for the job can be problematic given many instruments available on the market. It’s easy to get lost in the myriad of different functionalities. The final decision will depend not only on the business need but also on the bank’s existing application landscape and strategic priorities. We partner with the many different vendors to find the solution that would best fit your needs.

Regardless of whether you choose to go with one of the above vendors, a custom-built solution or another tool on the market, Deloitte can help you with your challenge.

By helping you to choose the right solution and business application, get the buy-in from stakeholders and apply rigorous development and testing methodologies, we guide you to avoid the typical implementation pitfalls.

Deloitte’s approach: start small and expand

Are you still wondering if predictive planning is right for you? With our approach, you don’t have to risk everything with a massive multi-year implementation project. Our goal is to deliver a quick return on investment while minimising the development risk. To achieve this ambition, we follow the approach below:

Start today, predict tomorrow

Our turbulent environment places high demands on Finance. Plans created ten months ago are nearly worthless. Due to constant changes, many scenarios need to be analysed and the amount of data is getting harder to handle. Nonetheless, by using integrated planning and advanced analytics, you can prepare better and steer your business through the chaos ahead.

There are many ways to get started, either with a pilot or a broad transformation. We can help you assess what is right for you and what benefits you can achieve. When you are ready to get started, or if you simply wish to find out more, please do not hesitate to contact us.

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