Resource Center

How Bankers Can Address Growing Budgeting Headaches

Budgeting at banks is a tricky balancing act that gets more challenging each year. The financial crisis, and its aftermath, created a new layer of regulation to consider. A growing need to fund technology projects and an uncertain rate environment have only made it harder to forecast revenue and expenses. As banks struggle with lower returns, compared to pre-crisis levels, finance officer will need to become more accurate with forecasting and budgeting, industry observers said. While there is no clear-cut solution, chief financial officers must rely more on input from business line heads, while increasing accountability when it comes to meeting goals.

Westerra Credit Union Improves Efficiencies in Financial Reporting and Budgeting by Leveraging Axiom Software

Denver, Colorado-based Westerra Credit Union is a $1.3 billion asset-sized institution that ranks among the top 250 credit unions in the United States. At Westerra Credit Union, its more than 100,000 members are owners and shareholders. The credit union’s goal is to return its profits in the form of lower loan rates, higher savings rates and lower fees for services, as well as by investing in new products and services for its members. Westerra Credit Union was looking for a solution that would significantly improve efficiencies in its performance management processes, particularly financial reporting and budgeting. It was critical that the platform they chose was a long-term solution, and scalable so that the credit union’s finance team could truly champion it and expand its use over time. Additionally, Westerra Credit Union wanted to maximize user adoption by selecting solutions that required minimal staff training and maintenance.

Budgeting for Performance

Managing business and financial performance in today’s challenging and constantly evolving financial environment is critical for any bank to achieve its short-term and long-term goals. The ability to manage business and financial performance is directly dependent upon an institution’s understanding of the drivers of that performance and the ability to effectively quantify projected business strategies.

Gauge All True Costs

As community bankers evaluate the most effective ways to achieve their profitability goals, the importance of calculating and tracking funds transfer pricing (FTP) should not be overlooked.

Baxter Credit Union Improves Profitability Measurement and Financial Reporting with Kaufman Hall’s Axiom Financial Institutions Suite

Vernon Hills, Ill. - based Baxter Credit Union ($2.5 billion in assets) sought to enhance its overall profitability framework, including a comprehensive Funds Transfer Pricing system and the ability to efficiently manage its cost allocations process. Additionally the credit union needed to streamline reports production and distribution so that credit union managers could receive better and more timely information to assist in their decision making. Baxter Credit Union also desired a partner that not only offered software solutions, but one with the ability share best practices for profitability measurement and analytics to help the credit union achieve its strategic goals.

State Bank & Trust Streamlines Financial Reporting with Kaufman Hall’s Axiom Software

With $3.5B in assets, 25 branches and seven mortgage origination offices, State Bank and Trust Company provides a variety of community banking services to both individuals and businesses. The company offers a range of deposit products and services, loans for small and medium-sized businesses, residential mortgage loans, home equity loans, and consumer loans. In addition, the company offers payment solutions for funds collection and concentration services, cash management accounts, disbursement services, fraud controls, online cash management systems, and payroll services.

Eastern Bank Enhances Budgeting, Capital Planning with Kaufman Hall’s Axiom Software

Boston-based Eastern Bank, the largest and oldest mutual bank in the country, faced unique business challenges brought about by its rapid growth and changing industry regulations. With the implementation of a new enterprise performance management (EPM) system in mind, the bank’s leaders sought a solution to support budgeting and reporting practices, help them manage profitability at a business-line level, and provide in-depth financial insight into proposed capital projects. Additionally, Eastern Bank recognized the value of working with a trusted partner that offered a single, unified system to manage these key business processes and provide strategic counsel on industry best practices.

Five Tasks for 2016

To succeed in 2016, hospital leaders should focus on five tasks designed to transform their organizations for a value-based, consumer-centric, Internet-oriented environment.