The Snapshot Assessment provides many of the same reports and charts that are included with the Product Value Assessment, but does not utilize an Employee Cost Assessment or detailed core transaction data resulting in a quicker and less expensive solution.
The Snapshot relies on a simplified methodology for developing direct operating cost by product that is based on per unit averages from recently completed Product Profitability Assessment clients. These results are then scaled to match reported employee costs, non-interest expense and non-interest income. Other ingredients of cost and financial performance utilize the client's actual data, e.g., product balances, number of loans and deposit accounts, loan yields and deposit rates, loan losses and non-interest income.
While the Snapshot's approach will not yield the same degree of accuracy as the Product Value Assessment, it does provide reasonable estimates of costs on financial contribution by product.
SnapShot Assessment (Optional) FTP
Kohl’s analysis indicates that accurate assignment of FTP rates contributes approximately two-thirds of the critical information required for proper product pricing. Together, the SnapShot FTP system and the Cost Assessment form the pillars of the comprehensive Kohl Strategic Pricing Framework, offering a thorough and efficient approach to financial product pricing.
The Kohl SnapShot FTP system leverages the data acquired from the SnapShot Cost Assessment, assigning specific Funds Transfer Pricing (FTP) rates to each financial instrument based on the publicly accessible Federal Home Loan Bank (FHLB) Advance rates from the FHLB of Des Moines. The choice of the FHLB of Des Moines rates is driven by their public availability and ease of download, facilitating independent verification by interested parties.