ABC Product Profitability
Snapshot ($7,500 - $8,500)
For smaller credit unions, and others not currently positioned to acquire a full Activity-Based Assessment of Balance Sheet Products, Kohl Advisory Group offers a moderately priced alternative that approximates the cost and profitability of 13 lending products and 6 types of deposits.
The ABC Product Profitability “Snapshot” utilizes average cost data by product in combination with actual information by product from your credit union. Results are delivered as a comprehensive report that includes charts depicting each major cost element by product and the resulting financial performance for each category of loans and deposit products. A presentation of findings is also included that explains the report and suggests how insights gained should influence marketing, pricing, product design and other product related decisions at the credit union.
Information required from your credit union includes total balances, number of loans and deposit accounts, average yields, projected loan losses, average interest rates and non-interest income (all by product). These amounts are used in conjunction with the average operating costs by product (from Kohl's ten most recently completed credit unions) and your credit union's total operating expense. Total net income therefore ties to your actuals.
Utilizing this methodology, Kohl Advisory Group provides reasonable estimates of financial contribution by lending product and the total “Net Cost of Funds %” by deposit product.
For a free sample report of what you would receive from an ABC Product Profitability Snapshot, including the one page input form that is all that needs to be completed, click below.
“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.”
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.”
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
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.”
Edge Federal Credit Union
$40 million assets