Retain and Expand Your Best Client Relationships
SKOKIE, Ill. – September 26, 2018 – Kaufman Hall announced today the release of Axiom Relationship Profitability and Pricing System™ (RPPS). In a single solution, Axiom RPPS helps financial institutions improve performance by more effectively building and managing client relationships, understanding associated profitability, and pricing new business. Kaufman Hall is a leading provider of enterprise performance management and decision support software, and management consulting services.
“We see tremendous potential for how Axiom RPPS will help us develop and retain our best client relationships,” said Brian Spielmann, director, Financial Planning and Analysis at First Business Bank. “The pricing tool in Axiom RPPS shows the impact of proposed new business on the relationship contribution—and whether it will meet established hurdle rates. Relationship managers also will have unprecedented ability to compare different pricing scenarios, side by side, arriving at the best proposal to meet both client and institution needs.”
Axiom RPPS offers three key components with comprehensive reporting in a single solution:
- Relationship Management: Enables institutions to build and maintain complex client relationships, enhancing visibility to the client’s sphere of influence and full value to the institution
- Relationship Profitability: Allows institutions to identify, monitor, and nurture high-value relationships, as well as to identify less profitable relationships that require additional focus
- Relationship Pricing: Empowers client-facing staff to set proposed new business pricing based on a relationship’s overall contribution and empirical profitability, not just transaction volume or account balance
Financial institutions typically analyze profitability across business lines, products, channels, officers, and clients. Adding relationship profitability to the analysis with Axiom RPPS provides relationship managers and institution leaders a more comprehensive, accurate view of performance.
Loan officers, for example, gain powerful monitoring tools, such as the following:
- A rolling 12-month view of profitability for each account, client, and relationship
- At-a-glance indicators for relationships that fall below risk and return thresholds (examples include risk adjusted return on capital and net income)
- Drill-down filtering on such items as instrument maturities, balances, and other measures that support the development of an actionable plan
Leaders can achieve better insight into portfolio performance by relationship manager, loan officer, and branch manager, leveraging the data to create and apply performance measures for incentive compensation, and to support decision making related to performance improvement.
“Businesses are evolving and we are committed to offering advanced solutions that will continue to meet the changing market needs,” said Kermit Randa, chief executive officer of software for Kaufman Hall. “Our new Axiom RPPS release exemplifies our spirit of innovation and commitment to add real and differentiated value for our clients.”
Learn more about Axiom Relationship Profitability and Pricing System.
About Kaufman Hall
Kaufman Hall provides software and advisory services to help financial institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods into their strategic planning and financial management processes, and quantify the financial impact of their plans and strategic decisions to consistently achieve their goals.
Kaufman Hall’s Axiom Financial Institutions Suite provides sophisticated, flexible performance management solutions for banks, credit unions, and farm credit associations that empower finance professionals to analyze results, model and forecast scenarios, and optimize organizational decision-making. Solutions for strategic decision management, budgeting and forecasting, funds transfer pricing and profitability management, reporting and analytics, and incentive compensation management are delivered on a single unified platform.