Personalized pricing for Allianz Bank Bulgaria

Executive summary

Goals: Implement preference packages functionality to personalize service fees for customers

Solution: Customized the Oracle FLEXCUBE Relationship Pricing module and implemented accounting automation to process

payments for preference packages and individual fees seamlessly

Benefits: Enhanced customer appeal due to personalized terms of services, higher competitiveness in the market with unique propositions by numerous banking services, and higher engagement in the segment of legal customers.

Services delivered: Custom software development, quality assurance, knowledge transfer, maintenance & support

Client background

Allianz Bank Bulgaria is part of Allianz SE, one of the leading global insurance and asset management companies with over 122 million private and corporate customers in 70+ countries. Allianz Bank Bulgaria is a universal commercial bank that provides complete bank services, including general insurance, retirement provision, mortgage loans, e-banking, leasing, and other financial services. It is among the 10 largest banks in Bulgaria.

• Client: Allianz Bank Bulgaria
• Location: Bulgaria
• Industry: Financial services
• Website: https://www.allianz.bg/

Business challenge 

Allianz Bank Bulgaria needed to set up the Relational Pricing module of Oracle FLEXCUBE to provide individual terms for its services and personalize the customer experience. For this purpose, the bank sought to implement a range of preference packages

offering beneficial fees for various financial operations, including money transfers, cash deposits and withdrawals, and more.

However, the standard functionality of the Relationship Pricing module could not address the bank’s goals out of the box. It needed complex configuration and customizations with creating direct database requests and building so-called system data elements and

user-defined elements based on database components. Implementing the desired functionality required qualified talent with relevant expertise.

The bank approached Tieto Tech Consulting for the implementation of the Relational Pricing module. Prior to this initiative, we’d had several successfully delivered projects for Allianz Bank, including the implementation of Oracle FLEXCUBE’ Mortgages, Deposit Locker, and Instant Payments [URL] modules.

Solution & business value

In close collaboration with Allianz Bank, Tieto Tech Consulting developed and deployed a custom preference package functionality based on the Relationship Pricing module of Oracle FLEXCUBE and the custom accounting model to seamlessly process fees and payments within preference packages.

Main features:

• Multiple preference packages, each containing 30-40 rules for different operations.
• Ability to create packages of individual preferences for corporate clients
• Automated accounting functionality integrated with Oracle FLEXCUBE
• Multiple historical data reports for Oracle BI
• Agreement templates to apply for a preference package service

Benefits for the client:

• Higher customer appeal: increased attractiveness to corporate clients thanks to the ability to provide individual preferences
• Unique value proposition: more comprehensive preferences compared to similar offerings in the market
• Automated accounting: seamless fee processing with no manual effort required
• Enhanced flexibility regarding individual service package management: the ability to create individual preferences for a specific client quickly and relatively easily
• Strengthened position in the corporate clients market segment

Technical details

After analyzing the client’s requirements and choosing Oracle FLEXCUBE toolset (Relationship Pricing module), our team developed the package preferences functionality:

• Phase 1 - The preference packages implementation: Each package involves 30-40 rules for different types of operations. Each rule either nulls a fee for a specific operation type or lowers it.

Since the preference packages included rules for various commissions, one of the main tasks was to implement appropriate ‘catching’ mechanisms to track transactions from other components inside and outside the Oracle FLEXCUBE ecosystem. In total, we implemented integrations with around 10 different systems of the client, including online banking, mobile banking, cash operations, and others.

• Phase 2 - Accounting automation: Preference packages are a paid service with a monthly or yearly subscription fee. This functionality was absent in Oracle FLEXCUBE out of the box. Therefore, our team implemented a custom accounting model and custom UI forms to let bank customers choose monthly or yearly payments for the preference package.

By default, such customizations require a run environment which wasn’t available. However, we managed to customize FLEXCUBE forms even without a run environment. Another customization included changing the logic of withdrawing fees from the customer’s account. By default, the system withdrew the full fee amount and then returned its part according to the preference package rules. The client wanted to make this process smooth and user-friendly for bank customers. We implemented all the required customizations.

This phase also included a great deal of custom logic development. For instance, when a bank client purchases the preference package on a monthly subscription, they pay for one month of use in advance. If there is not enough money in the account for the next payment, the system tracks the required amount for six months, attempting to withdraw it. If not paid, the required amount turns into debt receivable on other accounts, and the preference package subscription is canceled.

In addition, the Tieto Tech Consulting team implemented multiple historical data reports for Oracle BI to enhance bank data analytics and data-driven decision-making.

Phase 1 took three months from start to go-live, and Phase 2 was implemented in less than three months.

After the project was finalized and deployed, we prepared a detailed user guide for working with the Relationship Pricing module. We also delivered a presentation explaining all the features and conducted a few training sessions to ensure smooth knowledge transfer.

The solution passed through in-depth testing with the engagement of specialists from other banks and gained positive feedback from them. Currently, our client continues onboarding their employees through Allianz Bank Bulgaria branches, and Tieto Tech Consulting continues solution support.

Technologies

• Oracle FLEXCUBE
• PL/SQL
• UIXML
• JavaScript
• EAR service
• SQL database objects
• Oracle BI