Margin Management

A budgeting and forecasting tool that provides for the calculation of budgets down to the Net Interest Income line in the Profit and Loss account.

MARGIN MANAGEMENT OVERVIEW

Whistlebrook’s Margin Management application (WMM) is a budgeting and forecasting tool that provides for the calculation of budgets down to the Net Interest Income line in the Profit and Loss account. Margin Management is an assumption based application that works on Loans, Savings, Treasury and Current Accounts.

The Margin Management application consists of a visual component for entering planning assumptions and a non-visual planning engine that processes those assumptions and produces budgeted output.

MARGIN MANAGEMENT CHALLENGES

Many good general purpose planning applications exist in the market place, however few if any have been designed to cater for the specific needs of a financial institution. In contrast to this, we have used our experience of the financial services sector and significant user input to develop a system specifically for this market.

Understanding how future market conditions and events will effect your business’s profitability is a vital part of planning your organisation. The Whistlebrook application gives the user the ability to analyse in detail various scenarios and the effect they might have on an organisations bottom line.

BUSINESS BENEFITS

Actuals data is imported into the Margin Management database and then used as the starting point for ‘Business As Usual’ processing. This consists of interest calculation, repayment processing, interest capitalisation and account maturity.

Within the visual application, assumptions about the future of the business are entered, which the planning engine then overlays onto the Business As Usual results. Assumption type varies by business area, but the main assumptions are:

  • New Product Launch
  • Balance Increases
  • Balance Decreases
  • Product Migration
  • Transfers
  • Rate Changes

WMM offers many useful features, these include:

  • forward planning for any time period from 1 month to 5 years
  • plans for the same time period can be built in order to provide scenario comparisons
  • View a general view of the output from within the application
  • View detailed output via the Margin Management OLAP cube using Excel as the viewing tool
  • Compare different scenarios and in subsequent months, compare plan results with actuals
SUMMARY

Like all of our systems, WMM is purpose built for Financial Institutions and developed in conjunction with our customers. This includes the ongoing evolution of the product which sees many enhancements ‘suggested by users’ being added to the software.

As a result, users find the system logical, intuitive and straightforward to use, especially when compared to other products on the market that have not always considered the specific, complex needs of a financial institution.