Profitability Analysis
Managing profitable customer relationships is key to survival in this increasingly complex and competitive financial environment. Banks need to have a system in place to enable them to maintain and grow profitable relationships.
Customers are demanding more and more customer service as they perceive products and services to be a commodity. To be able to provide effective customer service and maintain bank profitability, managers need better information. FarSight will allow you to build stronger customer relationships and to be able to price and market products and services effectively.
Other systems use simpler bank wide cost of funds calculations to assign costs which gives you a skewed view of the profit or loss of an account.
Funds Transfer Pricing is the industry recognized best solution to properly assign cost of funds to loans and funds credits to deposits, thus leveling the playing field and allows both borrows and depositors to be given credit for borrowing funds and for providing funds.
Customers are demanding more and more customer service as they perceive products and services to be a commodity. To be able to provide effective customer service and maintain bank profitability, managers need better information. FarSight will allow you to build stronger customer relationships and to be able to price and market products and services effectively.
Customer Profitability | Organizational Profitability | Employee Profitability | Product Profitability
Funds Transfer Pricing
Through the use of Funds Transfer Pricing Möbius provides you with the most accurate picture of your cost of funds. Funds Transfer Pricing allows your institution to assign funds at the account, customer, product and branch level.Other systems use simpler bank wide cost of funds calculations to assign costs which gives you a skewed view of the profit or loss of an account.
Funds Transfer Pricing is the industry recognized best solution to properly assign cost of funds to loans and funds credits to deposits, thus leveling the playing field and allows both borrows and depositors to be given credit for borrowing funds and for providing funds.
Customer Profitability
Möbius will provide your organization a clear picture of how profitable each of your customers are by providing a powerful set of tools that will measure profitability at both the account and customer levels. You will have a true ROE for each customer relationship.
Customer Relationship Managers will know where cross selling opportunities exist and which customers they need to focus on. In addition, FarSight will help bank personnel in making informed decisions on how to price products and services to an individual customer based upon their profitability to the organization.
Sample Customer Profitability Reports
Customer Rank Changes
Customer Profitability Ranked by Dollars
Customer Relationship Managers will know where cross selling opportunities exist and which customers they need to focus on. In addition, FarSight will help bank personnel in making informed decisions on how to price products and services to an individual customer based upon their profitability to the organization.
Sample Customer Profitability Reports
Customer Rank Changes
Customer Profitability Ranked by Dollars
Householding
Through sophisticated software Möbius is able to provide you with customer relationships you can not get from other products. With our householding feature customers are related
automatically even if you don't have them related in your core accounting system.
The software can relate husbands and wives, relate couples to their children and other family members. Business owners can be related to their businesses as well. If your core accounting system does have customer relationships in it such of "Joint Ownership", "Payable on Death", "Guarantor ", etc. these can be processed and also used to relate customers.
Then in our FarSight software, when you view a customer, all customers who are related will be easily available allowing you to see the overall profitability of a family, a business owner and his business or any other combination.
The software can relate husbands and wives, relate couples to their children and other family members. Business owners can be related to their businesses as well. If your core accounting system does have customer relationships in it such of "Joint Ownership", "Payable on Death", "Guarantor ", etc. these can be processed and also used to relate customers.
Then in our FarSight software, when you view a customer, all customers who are related will be easily available allowing you to see the overall profitability of a family, a business owner and his business or any other combination.
Organizational Profitability
In addition to customer analysis, FarSight provides you Organizational Profitability Analysis. Reporting is done beyond the institutional level provided by the General Ledger and is done at the branch or profit center level. Each branch will be assigned a cost of funds for loans and credits their deposits based upon performing Funds Transfer Pricing on each individual account at that branch. In addition, all non-interest income and non-interest expense can be allocated via multi pass rules and/or activity based costing.
Analysis at this level will enable management to measure performance in a department by department context. You will know what branch or business unit is driving your profits and what your true expenditures are at each level of the organization. Profit center managers will know the overall profitability implications of their activities.
The organization will be able to build strategies to leverage the strengths of those operational units that are operating at or above expected levels. In addition, you will have detailed analysis of those units that are performing below expectations and make informed decisions on how to improve performance.
Sample Organizational Profitability Reports
Loans and Deposits by Branch
Comparative Income Statement
Executive Summary
Analysis at this level will enable management to measure performance in a department by department context. You will know what branch or business unit is driving your profits and what your true expenditures are at each level of the organization. Profit center managers will know the overall profitability implications of their activities.
The organization will be able to build strategies to leverage the strengths of those operational units that are operating at or above expected levels. In addition, you will have detailed analysis of those units that are performing below expectations and make informed decisions on how to improve performance.
Sample Organizational Profitability Reports
Loans and Deposits by Branch
Comparative Income Statement
Executive Summary
Employee Profitability
Möbius also provides senior management with powerful tools to measure employee productivity. Reports will be at your fingertips to enable you to accurately tie
compensation plans to performance - ideal for incentive based compensation measurement!
In addition, lenders will be able to compare against bank wide results and other officers with similar portfolios.
Sample Employee Profitability Reports
Loan Officers Ranked by Profit In Dollars
New Loan by Officer
In addition, lenders will be able to compare against bank wide results and other officers with similar portfolios.
Sample Employee Profitability Reports
Loan Officers Ranked by Profit In Dollars
New Loan by Officer
Product Profitability
The product profitability component allows a financial institution to analyze true product margins on loans and deposits via Funds Transfer Pricing. By assigning direct and indirect costs on each product utilizing activity based costing you will be able to obtain a complete picture of a products profit or loss. Product definitions are bank defined as are the parameters that affect the profit on each product.
Flexible reporting will provide you with numerous report options. Reports include branch level reports that will allow management to compare their portfolio to other branches and to bank wide results and a yield by product report that allows for comparisons for pricing decisions.
FarSight can perform individual product stratification, including balances in individual customer accounts, which will help you determine pricing for various tiers of account balances.
Sample Product Profitability Reports
Deposit Products Ranked by Profit In Dollars
Loans Products Ranked by Profit In Dollars
Flexible reporting will provide you with numerous report options. Reports include branch level reports that will allow management to compare their portfolio to other branches and to bank wide results and a yield by product report that allows for comparisons for pricing decisions.
FarSight can perform individual product stratification, including balances in individual customer accounts, which will help you determine pricing for various tiers of account balances.
Sample Product Profitability Reports
Deposit Products Ranked by Profit In Dollars
Loans Products Ranked by Profit In Dollars
Please Note: All sample reports on this page are in PDF format. Please visit Adobe for further information on viewing these files.