Planning & Consolidation for Banks & Credit Unions

Net Interest Margin modelling requires complex calculations on large volumes of data (e.g. account level data about Mortgages, Car Loans, Time Deposits, etc.). Goal is to project future asset and liability balances with future market interest rates yielding net interest income which is interest earned on assets (loans/investments) minus interest expense on liabilities (deposits/borrowings).

  • The Banking industry has unique models to plan/forecast their business and must combine traditional Finance FP&A with Balance Sheet/Net Interest Margin Planning
  • Overall budget process includes Net Interest Margin Planning, Capital Expenditures, Human Resource, Operating Costs and Fee Revenue
  • In addition to the traditional general ledger data necessary to produce financial statements and support internal controls, banks require easy access to sub ledger account detail for investments, loans, transactional deposit accounts, time deposits and borrowings
  • To calculate Net Interest Margin, they must be able to integrate data from loans and deposits with general ledger data and then apply growth and interest rate drivers to calculate interest earned and principal cash flows:
    • The calculations must include projections based on the attributes of existing customer accounts and the anticipated attributes of new balances
    • These calculations must be based on forecasted interest rates


      • will address all functions on a single platform: OneStream

        • Financial Close including customer account data for loans and deposits
        • Scenario modeling allowing the finance team to test sensitivity to economic and demographic drivers
        • Budget and forecasting addressing the computational and data demands of Net Interest Margin planning
        • Profitability calculations based on Funds Transfer Pricing (FTP) and account attributes

      Solution Architecture (OneStream)

      See in action with this video