Transforming Profitability Analytics into Strategic Advantages

Financial institutions are currently grappling with the challenges of pricing, liquidity, and interest rate risk, potentially leading to a decline in profits, capital reserves, and overall financial stability

At KohlAG, we offer a variety of game-changing solutions through our innovative Strategic Management Framework that effectively tackles these challenges head-on, with a focus on three pivotal areas.

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Pricing

Strategic pricing to meet Capital/ROA goals and better serve stakeholders.

Operational Effectiveness

Analyze employee costs (up to 80% of Non-Interest Expense) for improved efficiency.

Portfolio Mix

Identify and leverage high-value products to strengthen your balance sheet.

Strategic Management Framework

Kohl's Strategic Management (SMF) Framework provides a structured approach for organizations to define their direction, make decisions, and achieve long-term objectives in a competitive environment. It acts as a roadmap that aligns an organization’s vision, resources, and actions with external opportunities and internal capabilities.

Kohl's Product Value Assessment (PVA) and Multidimensional Value Analysis (MVA) are essentially embedded tools within the Strategic Management Framework (SMF) that operationalize how strategy is evaluated, prioritized, and refined—especially around product decisions.

Solutions

Starting at $9,500

 

  • Fast and inexpensive
  • Uses your financial data
  • Provides comparisons to other institutions in our database
  • Optional Funds Transfer Pricing
Starting at $38,500
  • Complete analysis of value contributed by loan and deposit products
  • Your institution's loan, deposit and core transaction data
  • Your institution's financial data
  • Our Employee Cost Assessment tailored to your institution
  • Optional Funds Transfer Pricing
Starting at $68,000
  • Our flagship service
  • Includes the Product Value Assessment (PVA)
  • Includes Funds Transfer Pricing
  • Extends the PVA to individual loan and deposit level
  • Allows users to examine profitability from infinite perspectives.

Starting at $15,000

 

 

  • Included with the MVA
  • Optional add-on for PVA
  • Can be purchased as a stand alone service.

  • Kohl's FTP service provides our core financial institution clients with access to net 
    interest margin information at 1/10th the cost of other solutions
Starting at $18,000
  • Kohl's Employee Time Study works with the systems you already use.
  • Measure how employees spend their time on day-to-day activities.
  • Improve the accuracy of cost and profitability analysis
  • Reveal opportunities for process improvement.
  • Data driven insight for staffing, budgeting, and strategic planning. 
 
  • Profitability and Operational Analytics:  Establishing the Fact Base
  • Strategic Planning: Turning Analytics into Driver-Based Strategic Modeling
  • Strategic alignment: documenting executive, horizontal, and vertical alignment
  • Strategy execution: converting strategy into daily operating discipline

Strategic Pricing System

KohlAG's Strategic Pricing System assists our clients in setting the minimum prices for loans and maximum prices for deposits. This ensures sufficient Risk-Adjusted Return on Assets (RAROA) to maintain the institution's desired capital ratio.

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Significance of Strategic Pricing

The framework underscores the significance of strategic pricing in financial services, advocating the Risk-Adjusted Return on Assets (RAROA) framework to balance profitability and risk.

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Focus on ROA

Emphasizing the Return on Assets (ROA) metric, it guides institutions in pricing to cover costs and manage capital.

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Funds Transfer Pricing

The framework focuses on Liquidity and Interest Rate Risk using methodologies such as Funds Transfer Pricing.

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Operational Cost Assignment

Time Driven Activity Based Costing ensures accurate, transparent, and detailed assignment of employee and vendor costs.

 

Try our Loan & Deposit Pricing Calculators

The Kohl loan and deposit pricing calculators form the core of the Strategic Pricing Framework. These tools determine at least the minimum price for loans and the maximum price for deposits.

By factoring in detailed origination and servicing costs, along with Funds Transfer Pricing from KohlAG's assessment, they provide fully risk-adjusted and costed pricing. This approach ensures alignment with an optimized Risk-Adjusted Return on Assets, preserving at least the institution's current capital ratio.

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