Jack Henry & Associates, Inc. announced today the ProfitStars Financial Performance SuiteSM
Designed to provide an integrated set of financial tools, this solution enables banks and credit unions to gain a single, concise view of data to better understand consumers and build effective pricing strategies for new transactions.
Industry studies report that up to 70 percent of financial institutions do not feel confident about their pricing and profitability practices. ProfitStars' Financial Performance Suite will give banks and credit unions a clearer picture of overall profitability and a way to consolidate their financial reporting into one system with a single download and single set of business rules to generate consistent results every time. The hosted solution offers comprehensive historical profitability and advanced pricing features with distinct simulation models for a variety of loan types. Financial institutions have immediate access to accurate, timely and meaningful profitability information to increase revenues and contain costs.
Oklahoma City-based First Fidelity Bank is an early adopter of the new ProfitStars Financial Performance Suite, though has a long history of using ProfitStars' predecessor relationship profitability solutions. Scott McLaws, executive vice president and chief financial officer of the $1.4 billion-asset bank, said, "ProfitStars Financial Performance Suite offers more capabilities to help us understand our customer base and segment it by profit. Being able to better match each loan's structure with customer profitability and smart loan pricing provides us stronger insights to targeted ROEs and rate approvals. We fully expect the solution to more accurately reflect loan pricing and profitability across our portfolio."
Financial institutions that have used ProfitStars' profitability and pricing solutions consistently have higher net interest margin (NIM) and return on equity (ROE) than their competition, with the NIMs achieving six to 10 basis points greater margin than industry averages. Through the ProfitStars Financial Performance Suite, they now have even greater control, discipline and consistency to the pricing process, ultimately powering the ability to maximize net interest income and better identify growth opportunities.
Hosted through Microsoft® Cloud, this new solution provides a thorough, accurate view of customer profitability alongside all loan and deposit pricing data. And since the platform runs in a secure, cloud-based environment, there is no hardware required; it allows access with either a PC or tablet. The platform integrates into any core and extracts data from sources such as the institution's credit and merchant card, as well as applications for leases, mortgages, trusts, deposits and insurance. Those involved with decisioning can interact with the common platform to gain insights and determine the most effective course of action.
Russ Bernthal, president of ProfitStars, added, "Disparate profitability solutions produce inconsistency in pricing results and demand an excessive effort to gather complete data. The ProfitStars Financial Performance Suite eliminates conflicting information so that institutions do not have to price blindly. It has never been easier for banks and credit unions to have the information they need to compete and make better customer-related business decisions."