Kaufman Hall Receives Validation Certification for Its Axiom Relationship Profitability and Pricing System

CHICAGO, April 18, 2019 /PRNewswire/ -- Kaufman Hall, a leading provider of enterprise performance management software, data, and management consulting services, announced today that its Axiom Relationship Profitability and Pricing System™ (RPPS) has received Validation Certification from Darling Consulting Group (DCG), a long-standing industry provider of model validation services for financial institutions. In offering the certification, DCG performed extensive testing to ensure the RPPS model operates as intended and with mathematical accuracy.

The Axiom Relationship Profitability and Pricing System provides the framework to build complex relationships, precisely measure profitability for each relationship, customer, and account, and accurately price new business.

"Profitable customer relationships are the foundation of well-performing organizations and we are proud to provide tools that help financial institutions with those efforts," said Kermit Randa, CEO, Kaufman Hall Software. "Axiom RPPS enables a visualization of the entire customer relationship, with the ability to drill down to the underlying accounts. This provides an invaluable understanding of where and how to apply resources to fully realize and leverage the value of each account, customer, and relationship in the portfolio."

"Financial institutions are using Axiom RPPS to make day-to-day tactical decisions, so we knew validating the accuracy of calculations through an independent third party was important to giving clients complete confidence in the results the system generates," said Ken Levey, vice president, financial institution software at Kaufman Hall. "By confirming through this rigorous testing that the software produces accurate current, historic, and future profitability and pricing calculations at the account, customer, relationship, and portfolio aggregation levels, our clients can dig deeper to understand the value of their business relationships and act on the results."

Axiom RPPS offers the flexibility to create relationships, perform the calculations, price new products and analyze the results in a single solution. Its components include:

• Relationship Management: Enables institutions to build and maintain complex client relationships, enhancing visibility to the client's sphere of influence and full value to the institution.
• Relationship Profitability: Allows institutions to identify, monitor, and nurture high-value relationships, as well as to identify less profitable relationships that require additional focus.
• Relationship Pricing: Empowers client-facing staff to compare scenarios and set proposed new business pricing based on a relationship's overall contribution and empirical profitability, not just transaction volume or account balance.
• Analytics: Provides extremely intuitive analytical dashboards, supplying valuable insights to make business decisions. By determining the top performing "decile" (top 10 relationships), for example, financial institutions know which are the most important to protect and expand.

In certifying Axiom RPPS, DCG stated that it "conducted an extensive set of numerical tests and found that the system's profitability calculations are accurate. In particular, DCG calculated account level historic 12-month and future 12-month margin, contribution, and the risk adjusted return on capital or RAROC metrics. DCG also extensively tested the pricing component of RPPS, evaluating different types of new pricing strategies for existing relationships and prospective clients. All of the tests yielded results that were in line with DCG's expectations."

Learn more about Axiom Relationship Profitability and Pricing System.

About Kaufman Hall
Kaufman Hall provides a unique combination of software, management consulting and data solutions to help society's foundational institutions to realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.

Kaufman Hall's Axiom Financial Institutions Suite provides sophisticated, flexible performance management solutions for banks, credit unions, and farm credit associations that empower finance professionals to analyze results, model and forecast scenarios, and optimize organizational decision-making. Solutions for strategic decision management, budgeting and forecasting, funds transfer pricing and profitability management, reporting and analytics, and incentive compensation management are delivered on a single unified platform.

Press Contact:
Philip Anast
Amendola Communications (for Kaufman Hall)
Email: [email protected]
Phone: 312-576-6990

SOURCE Kaufman Hall

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