BI360 for Credit Unions. Enabling World-class Decisions for Credit Unions A Solver Vertical Industry White Paper

Transcription

1 BI360 for Credit Unions Enabling World-class Decisions for Credit Unions A Solver Vertical Industry White Paper Updated: Nov 2017, Document Version 4 Solver, Inc. Copyright 2017

2 Table of Contents Introduction... 3 Architecture Overview... 4 CU01 Performance Benchmarking... 5 CU02 Earnings Dashboard... 6 CU03 Income Analysis... 7 CU04 Performance Measures... 8 CU05 - Performance Dashboard... 9 CU06 Asset Quality Dashboard CU07 Return on Assets CU08 - Asset Liability Management CU09 Capital Adequacy Dashboard CU11 Operational Measures CU12 Operational Ratios CU15 Supplemental Ratios CU20 Profit and Loss Report CU21 Balance Sheet CU30 Call Report Summary CU45 Budget Goals Form Appendix Terminology used in this Document Copyright Solver, Inc., 2017 BI360 White Paper Page 2

3 Introduction BI360 is a leading web-based Corporate Performance Management (CPM) suite made up of budgeting, reporting, dashboards, and data warehousing, delivered through a web portal. BI360 is offered for cloud and on-premise deployment and represents the next generation of CPM solutions. BI360 empowers business users with modern features including innovative use of Excel in the model design process. End users have anytime, anywhere access from a modern Web Portal and Mobile Apps. The features that differentiate BI360 the most from other CPM applications are: 1. Available both for cloud and on-premise deployment. 2. Third generation Excel add-in for simple or complex reporting and budgeting template design. 3. Modern Excel, Web and Mobile end-user front-ends for easy access to information and powerful collaboration. 4. Pre-configured and extensible, smart data warehouse. 5. Deployed as individual modules or as a single, comprehensive CPM Suite with a single security model and deployment. Copyright Solver, Inc., 2017 BI360 White Paper Page 3

4 Architecture Overview Below, you can see a simplified architecture with all of the BI360 modules. The Reporting, Budgeting and Dashboard modules can both run live on a number of different ERP systems as well as off the BI360 Data Warehouse. Note: For more detailed information about BI360, please info@solverglobal.com and request the document: BI360 White Paper Overview of the BI360 Suite. You can also learn more about BI360 for Credit Unions here. Copyright Solver, Inc., 2017 BI360 White Paper Page 4

5 CU01 Performance Benchmarking This dashboard example compares key metrics between yourself and selected peers. It shows the capability of using the BI360 Data Warehouse to load data from external data sources and then, to design dashboards with the BI360 Dashboard module for user-friendly graphical analysis, in this case used for benchmarking. This example will compare against past performance and specifically chosen peer Credit Unions. Copyright Solver, Inc., 2017 BI360 White Paper Page 5

6 CU02 Earnings Dashboard This is an example of an Earnings Dashboard for Credit Union executives. It shows the use of the BI360 Data Warehouse to combine numerous important ratios and on a single dashboard, to present whatever you determine as the most essential information related to Earnings. In this sample dashboard, the following information is included: Fixed Assets & FRA s /Total Assets Provision for Loan & Lease Losses/Average Assets Net Income/Average Assets Loan Income(Net)/Average Assets Gross Income/Average Assets Cost of Funds/Average Assets Copyright Solver, Inc., 2017 BI360 White Paper Page 6

7 CU03 Income Analysis This dashboard example focuses on Income. The following information is included: Income by Category Income by Type Income Comparison Copyright Solver, Inc., 2017 BI360 White Paper Page 7

8 CU04 Performance Measures This BI360 dashboard example shows a series of measures as KPIs. The example below includes charts and key figures, all in a YTD format. Income Net Operating Expense Operating Expense Net Worth Total Assets Personnel Expense Cost of Funds Net Interest Margin Loans Charge-Offs and PLLL Copyright Solver, Inc., 2017 BI360 White Paper Page 8

9 CU05 - Performance Dashboard This dashboard example focuses on critical areas, such as Assets, Operating Expenses, Loans and Investments. In these charts, you can drill down to see how NCUA Accounts adds up to make the total amount for each category. Copyright Solver, Inc., 2017 BI360 White Paper Page 9

10 CU06 Asset Quality Dashboard This dashboard example focuses on Asset Quality. The following information is included: Delinquent Loans/Total Loans & Total Assets Unrealized Gain (Loss) on AFS/Cost of AFS Net Charge-Offs/Total Loans Copyright Solver, Inc., 2017 BI360 White Paper Page 10

11 CU07 Return on Assets This dashboard example focuses on critical information for the financial health of a Credit Union. The YTD Return on Assets/Average Assets is demonstrated in a table and as a chart. YTD Return on Assets as % of Average Assets ROA vs Provision for Loss on Loans and Leases Yield on Loans vs Cost of Funds Copyright Solver, Inc., 2017 BI360 White Paper Page 11

12 CU08 - Asset Liability Management This dashboard example focuses on assets and liability management as dictated by the NCUA category of ratios. The following information is included: Cash Equivalents/Total Assets Shares, Deposits + Borrowings Long Term Assets and Total Assets Shares and Share Drafts vs Shares and Borrowings Copyright Solver, Inc., 2017 BI360 White Paper Page 12

13 CU09 Capital Adequacy Dashboard As with earlier examples, these ratios are particularly important when considering a Credit Union s Capital position. Here we are concerned with the following ratios: Classified Assets/Net Worth Net Worth/Total Assets Solvency Evaluation Delinquent Loans/Net Worth Copyright Solver, Inc., 2017 BI360 White Paper Page 13

14 CU11 Operational Measures This dashboard example focuses on metrics identified in the Call Report automation process. The following information is included: Measures as KPI YTD Net Measures Assets by Category Copyright Solver, Inc., 2017 BI360 White Paper Page 14

15 CU12 Operational Ratios As with earlier examples, these ratios are of interest in the day-to-day operations of a Credit Union: Expense Ratio Net Income vs Operating Expenses Growth Categories Copyright Solver, Inc., 2017 BI360 White Paper Page 15

16 CU15 Supplemental Ratios This dashboard example contains additional metrics that support the overall view of the Credit Union s financial performance. The following information is included: Cost of Funds/Average Assets Net Margin & Operating Expense/Average Assets Operating Expense vs Gross Income Copyright Solver, Inc., 2017 BI360 White Paper Page 16

17 CU20 Profit and Loss Report This BI360 report example shows a formatted Profit & Loss Report. Virtually any financial statement can be designed with BI360 s flexible report designer. The example below includes charts and key figures in large fonts to draw the reader s attention to the most important information in the report. Users can drill down to analyze the details behind the numbers. As with all BI360 Reports and Dashboards, filters can be used to run the report for any time period, any branch, etc. Also, the report can be run and published by , or run on-demand in Excel, in the Web Portal or on a Mobile device. Copyright Solver, Inc., 2017 BI360 White Paper Page 17

18 CU21 Balance Sheet Similar to the Call Report Summary (CU14), this balance sheet is categorized in compliance with the fashion that most Credit Unions organize their accounts. Copyright Solver, Inc., 2017 BI360 White Paper Page 18

19 CU30 Call Report Summary The Call Report Summary is based on media produced by NCUA to show variance against prior periods, as well as peer group or national average. Functioning as a Balance Sheet, it is common to the industry. Copyright Solver, Inc., 2017 BI360 White Paper Page 19

20 CU45 Budget Goals Form This BI360 report example shows a web-based Budget Goals input form. Virtually any input form can be designed with BI360 s flexible report designer. The example below includes budgets by different branches and can be generated as individual branch reports for update by branch managers, and the data will roll up to the main budget report. As with all BI360 Forms, Reports and Dashboards, filters can be used to run the form for any time period, any branch, etc. Copyright Solver, Inc., 2017 BI360 White Paper Page 20

21 Appendix Terminology used in this Document This demo model is for Credit Unions, and it pays particular attention to the National Credit Union Administration (NCUA) definitions and protocols. The basis for this data set is a data warehouse uniquely shaped to address the 5300 Call Report requirements, which all NCUA members must address quarterly. CU01 - Performance Benchmarking Each sheet of this report is dedicated to NCUA defined ratios within discrete categories. The actual KPIs are self explanatory, and their existence in the category is to be expected by the audience. CU02 - Earnings Dashboard Fixed Assets & FRAs refer to the fixed assets as well as foreclosed, recovered assets. Provision for Loan & Lease Losses or PLLL is a specific reserve mandated by the NCUA. Average Assets is a measure commonly used to be understood as the YTD balance averaged and annualized. CU04 - Performance Measures This dashboard simply demonstrates the existence of the expressions and KPIs that a Credit Union can expect to exploit once they have automated their call report using the BI360 data warehouse and reports. CU05 - Performance Dashboard This dashboard allows for drill down to an NCUA Account from five distinct charts. Each of these is a major category in the NCUA Call Report and is made up of various other measures. We have left the null sets in the drill down as they demonstrate the completeness of the equation and in many cases, will hold no value in the real world. CU06 - Asset Quality Dashboard AFS (Alternative Financial Solutions) include payday advance loans and other lending services. Copyright Solver, Inc., 2017 BI360 White Paper Page 21

22 CU07 - Return on Assets Return on Assets as % of Average Assets this is a critical measurement, though not included in the NCUA summary. Demonstrating ROA as a by product of the Call Report Automation is a key value add. Yield on Loans vs Cost of Funds touches on one category of assets and the return therein. CU08 - Asset Liability Management Cash and Equivalents refers to cash on hand, liquid assets and similar items. Shares, deposits and borrowings represent the liabilities a Credit Union is most concerned with in terms of measuring their effectiveness. CU11 - Operational Measures While not included as a category in the NCUA Summary, all of the measures included are of interest on their own. CU12 - Operational Ratios Interesting set of charts that demosntrate the use of expressions to generate charting that falls outside of the NCUA demand for information. These are credible examples of information an auditor might want, while not specifically included in the call report submission. CU15 - Supplemental Ratios This is a standard category of ratios. All the ingredients are self explanatory. CU30 - Call Report Summary This is an example of the call report summary, which the NCUA issues every Quarter as a summary of all Credit Unions. Using our NCUA dataset, we can also run this for a specific peer or peer group as well as running the numbers for our own data. Very helpful in bringing home the point that benchmarking can be accomplished at a granular level. CU45 - Budget Goals Report The Budget Goals report consists of two reports in the demo. One is for a specific branch, the other covers all entities. This demonstrates the Web Budgeting as well as security features of the BI360 data warehouse. Copyright Solver, Inc., 2017 BI360 White Paper Page 22