FTP is a highly flexible management accounting tool that allows banks to measure and evaluate net interest margin and profitability across assets and liabilities. Our FTP product takes data at an account level and has the ability to aggregate to different reporting dimensions such as branch, product, business line, relationship manager, and more. The system is also capable of deriving the monthly average balance at the account level, allowing for accurate FTP rate calculation. With the ability to set up FTP methodologies of varying degrees of complexity, our engine is designed to be highly flexible and can assign distinct FTP rates for various pools based on product and customer mix. Overall, our FTP solution is a powerful tool for performance evaluation, product pricing, and appropriate cost allocation.
Measure profitability through various dimensional reports (branch/product/business line/RM/customer).
Supports an exhaustive set of FTP methods available out of the box such as “Matched Term”, “Cashflow Based”, “Assigned Rate”, “Margin Based”, “Spread Locks” and more.
Takes account level average balances along with base curve and adjustment curve rates to compute the transfer pricing spreads made against the contractual interest rates.
Distributing different type of costs i.e., Direct and Indirect and allocation of such costs to different business unit using rule-based allocation method and cost drivers.
Generate reports and analyses on FTP interest and final FTP rate, profitability, division of spread, business unit FTP, and net income calculation.
Allow base, yield curve, branch, and business line definitions
