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 Pricing 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 Pricing Framework

KohlAG's Strategic Pricing Framework 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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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 $37,500
  • 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.

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