INTERACTIVE DECISION MODEL

A/LM Modeling for Credit Unions

Every decision has a financial consequence, and decision making never stops. While sitting around a table with your management team discussing options, you can test your decisions under consideration—right there. Usually in 1 to 4 minutes, you can see how each decision (or combination of decisions) can change your long-term risks to earnings and net worth.

This is what we mean by "Interactive."


Modeling Capabilities

Our technology can model just about anything out there. And with our easy-to-understand graphics and reports, communicating the important measurements of your existing and future earnings power and risk in your balance sheet has never been easier. Modeling capabilities include:

  • Automatic twisting of the yield curve from +400 to -200 basis points
  • Quantification of long-term risks to earnings and net worth
  • Flexibility in modeling non-maturity accounts
  • "What-Ifs" in 1 to 4 minutes
  • Existing commitments separate from new business
  • Target balance sheets and strategic plans
  • ROA required from new business to achieve goals
  • Merger analysis
  • Bump CDs
  • Embedded options
  • Derivatives
  • Net Economic Value (NEV)
  • Calls/step-ups
  • CMOs and other complex investments
  • FAS 107
  • Non-interest income
  • Mortgage servicing
  • Structured borrowings with optionality
  • Operating expense
  • History-based rate environments

Consultative Assistance and Training

The Interactive Decision Model is fast and easy to use. We will implement it for you, including guidance in developing critical assumptions. Then, we will deliver the model to you with your financial structure set up and ready to use.

Our support is not just "how to operate the model." Our highly specialized consultants provide assistance in using the Interactive Decision Model as a weapon. Because our consultants conduct thousands of simulations and work with hundreds of senior executives each year, we encourage all clients to use them as a resource to discuss various options for achieving their unique objectives.

Complimentary model training is regularly scheduled at our Phoenix headquarters.


Independent Assessments Are Included

Annually, we will conduct a thorough Independent Assessment of your long-term risks to earnings and net worth and review the results with you.


DATA DOWNLOAD

Highly Recommended

Our Data Download quickly and automatically downloads your financial information into our models. We will map your loans, shares and CDs from your data processor into our Interactive Decision Model in order to set up your beginning position for your simulations and simplify data gathering for your loans, shares and CDs.

Contact us for more information.