Proven to increase profitability and efficiency
Axiom™ Relationship Profitability and Pricing System (RPPS) lets financial institution leaders and relationship managers build and manage complex relationships, precise measure profitability, accurately price potential new business, and inform business decisions.
A third-party analysis shows that a typical bank with $5B total assets generates a return on investment (ROI) of 165% over 5 years (21.52% annualized) and a payback of 6.5 months through improving relationship profitability and pricing analyses, incentivizing profitable growth, and reducing time spent on relationship analysis. A similarly sized credit union generates a return on investment of 409% over 5 years (38.47% annualized) and a payback of 3.4 months.
Why is Axiom RPPS a cut above the rest?
Through close examination of financial results, a typical Axiom RPPS implementation reduces time spent on relationship analysis by 33%. For an institution with $5B total assets, Axiom RPPS improves relationship profitability and pricing analysis to increase return on equity (ROE) by 5 basis points (banks) or return on assets (ROA) by 1 basis point (credit unions). By incentivizing profitable growth, Axiom RPPS clients also increase ROE by 2.5 basis points (banks) and ROA by 1 basis point (credit unions).
Want to improve your relationship profitability analysis and pricing? Learn more about Axiom RPPS.
“Axiom includes more costs and profitability metrics that allow us to protect profitability opportunities on existing relationships and determine the risk of pricing.”
– Director of Finance at a Mid-Sized Bank
Axiom RPPS received a Validation Certification Statement from Darling Consulting Group in 2019, certifying:
- Accuracy – Axiom RPPS produces accurate current, historic, and future profitability and pricing calculations
- Reliability – Axiom RPPS can be reliably used to price and manage business
- Compliance – Axiom RPPS satisfies SR 11-7 (Federal Reserve Guidance on Model Risk Management) and OCC Bulletin 2011-12 (OCC Supervisory Guidance on Model Risk Management)