Many financial institutions utilize some form of transfer pricing to measure and evaluate the net interest margin ("spread") of products, business lines, officer portfolios, customer relationships and segmentations. However, unless the system motivates profitable actions and provides for comparable performance evaluation there may be little to no benefit realized in terms of earnings enhancement.
FTP allows you to identify spread contributions from assets, liabilities and interest rate risk through a variety of user-defined methods and yield curves. It also provides comprehensive allocation techniques to assess the contribution of individual transactions based on true economic characteristics.
FTP's built-in range of reports enables analysis of the net-interest margin at any organizational- and product-level desired. Standard reports include current process reporting, variance reporting, funding center reporting, as well as exception and account-level reports.
The integration with the Fiserv suite of profitability measurement and reporting tools enables users to calculate and report bottom-line profit contribution at the organizational-, product- and customer-level.