Luminor Bank 

Activity-based Costing with SAP Profitability and Performance Management (PaPM)

  • Luminor Bank needed an activity-based costing solution that captured all costs in all dimensions, to improve decision-making with complete transparency

Project Details


  • Current activity-based costing system lacked flexibility and multi-dimensional views
  • Create an efficient process to support product and pricing decisions
  • Develop dimensional cost for granular analytics
  • Produce precision in profitability measurements and pricing


SAP Profitability and Performance Management:

  • Flexible and intuitive interface for activity-based cost modelling
  • Fully integrated with the existing architecture to improve the data flow
  • Easy to manage by the finance and controlling users with minimum IT involvement


  • Transparency in analyzing complex cost allocation and tracing results back to cost origin
  • Allows for efficient assessment and understanding of activities for cost optimization and competitive advantages
  • Generate process and cost comparisons across countries for better alignment

Why msg global

  • Global experts in developing and implementing SAP Profitability and Performance Management activity-based costing solutions
  • Passionate about the solution, eager to share knowledge and improve processes
  • Focus on long-term success and a cooperative partnership


luminor wordmark dark burgundy

As Promised

Project Delivered
On Time and On Budget


Passionate team made
success possible

Cooperative Partnership

Reliable and Trustworthy

"Activity-based costing model was required by Luminor’s executive management team to gain detailed cost transparency in granular dimensions, including product and segment.

We appreciate msg global’s support in delivering a high quality project with a challenging timeframe.”

Statement from Rait Maasikas, Head of Performance Management & Insight Department

Luminor Bank AS, 
the third-largest retail bank in the Baltics

Tallinn, Estonia


Products and Services
Retail and Wholesale Banking Products


Web Site

For more information on this customer story, please contact Louise Cooke