Activity-Based Assessment of Balance Sheet Products

Relied upon by financial institutions from about $100 million in assets to over $40 billion, this comprehensive service is for those who want an independent, in-depth evaluation of the cost and profitability of their products. The service takes 3 - 6 months to complete and entails onsite work. The fee varies by balance sheet complexity and number of employees, but generally ranges between $20,000 and $30,000 for the initial Assessment and approximately 15% less for annual updates.

Utilizes Activity-Based Costing


The analytical foundation for all services provided by the Kohl Advisory Group is Activity-Based Costing. ABC has powerful capabilities that afford credit unions the most useful and least disruptive means for identifying the cost and profitability of their products. In addition to discovering cost and profitability levels by product, ABC has a truly unique ability to disclose the costs associated with each major step in loan origination as well as collections versus non-collection servicing.

Enhanced Decision Making


The Activity-Based Assessment of Balance Sheet Products materially enhances the ability to make informed product related decisions. By discovering and understanding cost and profitability by product, management is better situated to decide which products to most aggressively promote and which ones to be more passive about. And for these latter products (the weaker performers), insights are provided that lead to corrective changes that enhance their contribution.

ABC Earnings Enhancement Model (optional add-on)

For those wishing to truly put the information to work, Kohl provides a 3-tier financial model that facilitates the development and testing of product related strategies. The ABC Earnings Enhancement Model provides an impressive capability to "What If" existing products as well as design and test new ones. Priced at $3,500 to $7,500 (depending on "Level"), the model also provides important insights into Risk-Based Lending.

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“We received substantially more than anticipated. We now have a more comprehensive Product Profitability Report, which incorporates extensive interviews with staff and contains detailed meaningful components of costs, to assist us in product profitability analysis.”

Janet Lee
Chief Financial Officer
Chevron Federal Credit Union
$1.4 billion assets

“Over the last ten years Navy Federal has used Kohlís Activity-Based Assessment to better understand and manage the cost and profitability of our products and services. In today's environment, in order to remain competitive, we strongly believe that credit unions need to understand and effectively manage what their products and services earn. Kohl's Activity-Based Assessment provided us with the tool to understand our product and service profitability.”

Joel Polster
SVP Financial Operations
Navy Federal Credit Union
$40 billion assets

“This is just the information our credit union has needed and we'll be putting it to very good use. I feel like a blind woman who's just had laser eye surgery!

Thanks again!”

Karen Rosales
Marketing & Business Dev.
Justice Federal Credit Union
$500 million assets

“Kohl Advisory Groupís "ABC Product Profitability Snapshot" not only develops cost and profitability by product, but also explains why our products cost and earn what they do. In addition Kohl provides guidance and training on how to use the accompanying software ("EZ What if" Model) to develop and test product related strategies. Our recent rollout of a member onboarding program helped us design a suite of profitable products that increase the usage and number of services acquired by members; generating revenue in areas that were loss leaders.”

Theresa Lotito-Camerino
Manager/CEO
Edge Federal Credit Union
$40 million assets