Kohl’s Product Value Assessment service provides critical information for pricing your loans and deposits based on your cost of delivery. This information also identifies what products create or destroy value. Kohl combines transactional data from your core and financial information from the general ledger with employee cost information from a tailored Employee Cost Assessment. This provides a complete picture of the value contributed by loan and deposit products.
Our clients use the information from their Kohl Product Value Assessment to establish loan and deposit prices based on accurate cost information, not guesses about what the “shop down the street” is doing. Kohl’s work also identifies which products provide value and which don’t and why. Where value/profit issues exist, our detailed comparisons to other financial institutions uncover the source of the problems, enabling management to take actions to resolve the issues therefore promoting increased profitability.
Collection of Data
Sharing data with Kohl couldn't be easier. With "Analytics" in our name, we handle the heavy lifting while you reap the rewards. Rest assured, no personally identifiable information (PII) is needed, keeping compliance worries at bay.
“The Kohl Assessment identified areas of opportunities in our suite of core products. Using the data from the Kohl Assessment, our Management team was able to collaborate, pinpoint specifics and take action. We are confident this will lead to substantial improvement in the contribution of these products and improved overall membership value."
- Hilary A. Eisbrenner SVP/CFO Space Coast Credit Union
Kohl Analytics Employee Cost Assessment
Almost half of all non-interest costs stem from salaries and benefits alone. When factoring in the expenses of supporting these employees, the costs can surge up to 80%. Understanding the exact roles and costs associated with employees presents a significant challenge for many organizations. Kohl excels at accurately identifying and assigning employee expenses to products by utilizing time-focused activity based costing.
Current Product Performance
Kohl's results include graphical and numeric representations of loan and deposit performance down to the activity level. This enables institutions to identify product value , how it is created or destroyed and why.
Acting on this detailed information enables institutions to improve performance by making specific changes to processes
.jpg "EmbeddedImage")
.jpg "EmbeddedImage")
Product Performance Trends
Trends in product value are extremely important to identifying the future performance of your institution. Once you have acted on the "Why," future Assessments will allow you to track the impact of your decisions.
Benchmark Comparisons
Other profitability solutions may be able to provide time and cost information. However, without the comparisons uniquely available from Kohl Analytics you will not know if your time is long/short or your cost high/low. These comparisons enable clients to identify where performance can be improved and where competitive advantages can be levered in the market to enhance returns.
To effectively put product value information to work, Kohl provides a Product Value Simulation Model that facilitates the development and testing of product-related strategies as well as the ability to update important value drivers without doing all of the work of a Product Profitability Assessment.
A PVA Refresh aligns your most recent PVA results from [AS OF DATE] with your current balance sheet mix and overall non-interest income and expense levels. This ensures your profitability insights remain accurate, relevant, and actionable for the next quarter.
Why Refresh?
- Ensure your PVA aligns with your latest income statement and balance sheet in between Assessments
- Understand how changes in volumes, rates, and charge-offs impact ROA and product profitability
- Gain a fresh baseline for “What If” scenario analysis with the Product Value Simulator
- Little work is required on your part—we only need updated product files and your income statement.
- Quick turnaround - Kohl Analytics takes care of the Refresh using the original PVA mapping, and the refresh can be completed in just a few weeks.