One of the big challenges for bank management is the need to calculate profits on different products, customers and divisions in order to make informed business decisions. The revenue from interest, which forms the largest component of bank’s profits, is received on loans and paid on deposits, this is why deposits seem to generate only costs, whereas they’re the source of funding necessary for lending. As a consequence, customers that only deposit funds without taking loans would be deemed unprofitable. To solve this problem, banks need to define an internal price that allows estimating the cost of financing a bank incurs and assigning it to users of funds. This is why Fund Transfer Pricing systems (FTP) comes as a solution that allows not only to measure and report profitability in a variety of ways, but also enhances institution’s profits.
Pio-Tech is pleased to introduce Bank-BI® FTP - Fund Transfer Pricing Engine, an essential tool that provides banks with sound method of calculating the fund transfer prices for effective decision-making, organizational and product profitability, product pricing in addition to balance sheet and resource allocations. Bank-BI® FTP enables the banks to transfer price of all financial instruments with complex attributes, behaviors and cash flows to reach a better evaluation of its products, customers, business units and other views of the financial institution.
For more details please contact Pio-Tech business development team on BD.Team@pio-tech.com