Creating Value for You
It's all in the details
Clients who use us regularly enjoy a Return on Assets (ROA) over 15 basis points better than industry average. This 15 basis point advantage translates into more than $1,500,000 additional income per year for every billion dollars of assets. For public companies with a Price/Earnings Ratio of 10 that could be an additional $15,000,000 in market capitalization. This also means our clients average an annual Return on Investment (ROI) of over 30 times their Kohl investment.
What Makes Kohl Unique
The strength of our process is the ability to identify the appropriate assignment of a financial institution’s largest cost quickly and accurately. For example, 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 directly gather operational employee data 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 enables us to assign employee and other costs to product categories in a highly accurate and detailed manner. Our studies have proven that assigning people costs using other drivers like loan balances or counts lead to very large inaccuracies. For example, if the people costs for one product are wrong then they are wrong for all products because every products received the wrong portion of the people cost pie. The bottom line is that if 1/2 of costs are assigned incorrectly then the entire profitability solution results are highly questionable.
Kohl also assigns other direct revenues and costs in a highly precise manner. When possible, Kohl extracts transaction data directly from the core and other systems, maps those individual transactions to the product categories and then aggregates the number of transactions and amounts to the appropriate category. This approach is far superior to the time consuming and less accurate process of creating allocations rules to dis-aggregate 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. In addition, it enables the comparison of how well employees are performing against other financial institutions in our database.
How Clients Benefit
Because we are a service, this allows us to collect a variety of benchmark data to assess our client’s performance at an unparalleled level of detail. We use this data to pinpoint exactly where you are doing better (or worse) than industry comparisons on an activity-by-activity basis. This enables clients to address waste and inefficiencies they commonly did not even know existed.
These benchmarks include operational process and cost information on approximately 100 activities supporting loan and deposit operations. By comparing our client’s operational time and cost data to Kohl’s benchmarks we can determine exactly where the issues are and calculate the value of addressing them. Kohl is the only company with this benchmark data which means we are the only company which can do this analysis at this level of detail.
Our Technology Advantage
Kohl Analytics Group doesn’t just provide numbers, we provide easy to understand analysis. Our advanced automation and smart algorithms apply facets of machine learning and artificial intelligence to not only generate 300 pages of performance detail, but also preform root cause analysis. The root cause analysis results in 10-15 page Summary of Findings with easily understandable English explanations of where (and why) there are performance issues. This means you don’t have to dig the issues out the 300 page document. The Summary of Findings report is great for presenting to the Board of Directors, examiners, ALCO, auditors etc.
In addition, with the Multidimensional Value Analysis, Kohl provides granular, instrument-by-instrument line item P&L data in Excel or CSV format. This enables clients to "slice and dice" the results right on their desktop using the reporting tool of their choice. It even enables users to customize the standard Kohl reports plus add data and dimensions to truly personalize the results.
Our Cost Advantage
Because of our highly automated solution, we can provide a level of sophisticated analytics for much less than the annual cost of owning an in-house system. Our cost is often less than just the support cost of commercial profitability software and far less when considering staff time.