Functional Statistics

Where does our public data come from?

Kohl Analytics is a boutique management consulting firm with a unique approach to understanding performance. We are a performance consulting service with our own software which enables us to accumulate a broad range of operational and financial data from our clients and use that as the basis for publications.

The strength of our process is the ability to identify the appropriate assignment of a financial institution’s largest cost quickly and accurately. Employees make up close to 50% of all costs, yet most organizations do a very poor job of analyzing and understanding exactly what employees really do. Kohl’s approach is to survey all the operational employees to understand how much time they spend on their specific job activities from a set of close to 100 of the most common loan and deposit operational activities. This allows us to assign employee and other costs to product categories in a highly accurate and detailed manner. In addition, it enables comparison of how well to they are performing those activities against other financial institutions in our database.

Kohl also assigns other direct revenues and costs in a highly precise manner. Kohl extracts transaction data directly from the core and other systems, maps those detailed transactions to the product categories and then aggregates the number of transactions and the actual transaction amounts to the appropriate product category. This approach bypasses, where possible, the time consuming, less accurate process of creating allocations rules to disaggregate the GL into the proper product categories.

The end-result is a unique data set which is detailed, accurate, and traceable back to its source.

The information contained in the Kohl Functional Financial Statistics is a derived from that client database. We then use standard statistical processes to determine the 25th, 50th, and 75th percentile for the categories presented. We also have over 100 other performance statistics available for each loan and deposit category listed in the publication.

One note, it can be argued that our percentiles are somewhat stronger than industry averages. This is because our average client enjoys more than a 15 basis point stronger Return on Assets (ROA). As such, it reasonable to assume our client’s other financial statistics are also better, but lacking industry wide information for comparison this has yet to be definitively proven.