Transforming Profitability Analytics into Strategic Advantages

Too often institutional plans remain broad while departments pursue seperate priorites. This results in fragmentation - departments moving in different directions while the insitutions strategic goals go unmet The Strategic Management Framwork solves this by creating a common strategic framework that aligns departmental decisions with institutional obectives such as ROA, Capital Strengh, Risk and Growth.

SMF Department Graph

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.

Strategic Pricing System

Kohl's Strategic Pricing System (SPS) is a key execution tool for the SMF. It 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.

Upward Graph 1
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.

ROA-1
Focus on ROA

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

photo_59596_20160110-1
Funds Transfer Pricing

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

DC3
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 System. 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.

Calculator 500x450

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 $68,500
  • 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.

Information Request