Funds Transfer Pricing & Profitability
Drive strategic performance and business line incentives.
Given the vital role Funds Transfer Pricing (FTP) and profitability models have on your institution's capital/strategic planning, product pricing, and performance incentives, ensuring these models' continued accuracy, reliability, and ability to generate actionable intelligence is critical to financial success and gaining competitive advantage.
“Are you confident in your risk management process? More importantly, can you afford not to be confident?”
Informed Effective Challenge
DCG's validation framework is informed by a team comprising former profitability model developers, implementation and use consultants, and thought leaders/educators including a faculty member of Financial Managers Society's Profitability Institute.
Strategic Benefits Beyond Validation
Institutions with well developed, documented, managed, and validated profitability models can gain tremendous insights into operations and inspire more effective product pricing and financial performance.
How We Help Clients
Examples of Client Results
Helped improve institution’s risk position modeling through identification of missing contractual characteristics in loan file by performing data validation.
Identified deficiencies in assumptions development and support process for deposit behavior characteristics. Helped institution better understand alternatives to defend deposit assumptions and deposit stability. Strengthened model assumptions and re-focused management on strategic deposit initiatives.
Re-validated risk models for $2B bank after exam found third-party vendor's validation “did not provide sufficient rigor.” DCG's re-validation with effective challenge uncovered myriad input and model deficiencies that, once addressed, changed bank’s risk profile and strategic direction.