About our client
Our client, MKK Zrt. (Hungarian Claims Management Center), is a leading player in the Hungarian receivable management market. As a comprehensive manager of receivables, MKK Zrt. specializes in managing both retail and business receivables, as well as engaging in factoring (financing) activities. Essentially, they purchase various claims and endeavor to recover them.
The work involved in our client’s sector typically requires substantial manual effort from case managers and controllers, prompting a need for a solution to streamline and automate these processes.
Business Challenge
The process for managing each claim was the following:
- The controller requests the factual data from the system and enters it into an Excel file
- The spreadsheet is sent out to the case manager via email or uploaded into a file share
- The case manager sends back the necessary claim data within a certain deadline (if this happens slowly, the factual data might need to be updated)
- In their own Excel file, the controller edits, consolidates and calculates data, creating the necessary case value
- There is no validation, whether the case manager accidentally or on purpose changed the fact data
- The calculation is double-checked by the controller
Typically, processing each claim could take up to two hours, not including additional time for validation checks, which added several more hours to verify factual data and calculations for hidden values or functions.
With around 80-100 custom claims, the time spent on manual and inefficient tasks was substantial, particularly during high-stress periods like the financial year-end.
Moreover, it was always questionable if the current version of the Excel file is the final one or not.
Another concern was the auditors’ desire for a more secure tool, as Excel’s “open” nature allowed unrestricted data modifications (anybody can add or edit the data).
Solution
Phase I. - Creating a paginated report using SSRS technology
We developed a paginated report for group claims by re-creating all data and calculations from the initial Excel files, such as IFRS-based claim evaluations and net present value (NPV) reports, using SQL calculations.
This resulted in an Excel report displaying only the numbers, with the underlying calculations hidden. However, the auditors’ lack of SQL knowledge made this solution a but of a “black-box” to them.
Phase II. - Individual claim management using Abylon Rapid Planning
Here the primary goal was to create the Excel files employing standard ETL technology (e.g., SSIS) iat a specific time, similarly to the group claims, but with some additional information (there are multiple weighted values for the expected cash flow).
A customized Excel template was developed for case managers using Abylon Rapid Planner, automatically populating it with factual data. Case managers then added necessary claim data received from debtors.
The evaluation conducted within the same template now included visible calculations in Excel, generated by SQL for formulas and cell references, enhancing process transparency and comprehensibility.
Results
- The first two stages of the case evaluation process is fully automated saving a lot of time.
- The work of the auditors is easier. They work with generated data – which means it can’t really be messed up.
- A specialized report tracks claim and data submissions.
- Greater transparency is achieved as all calculations and formulas are visible.
About our Financial Planning Solution
For more information check out some of our other blogposts about the Rapid Platform and our FP&A solution Abylon Rapid Planner:
