Our experts deliver an actionable profitability framework that combines funds transfer pricing (FTP) best practices, service transfer pricing, and economic capital allocation practices to help your institution maximize profitability.
The Kaufman Hall framework makes profitability measurement processes completely transparent, enabling stakeholders to have a clear picture of the many factors affecting costs and profits. This multi-tiered service can include a combination of methodologies, analyses, audits, strategic deployments, and executive and management training to maximize efficacy in your institution.
With an efficient approach to profitability management, financial institutions can:
- Calculate FTP to view the value created by funds users, funds providers, and interest rate risk managers
- Support costing with rate/volume equations at the most granular level
- View top- and bottom-performing products and services to identify areas for profit improvement
- Apply cost factors that may have been estimated from cost studies or other means
- Draw on profitability results to inform other areas of planning and incentive compensation management
These capabilities and tools provide your institution with valuable insights to drive better decision making across the enterprise for years to come.