“In the past, when commercial customers inquired about CD rates and other deposit rates, we sent an E-mail to our CFO to find out what specials we could give them. This took a lot of our CFO’s time and effort. With ProfitMagnifier we build different pricing scenarios to see how the profitability of our commercial customers change when we change the price of their deposits.

For instance, we built a scenario where we moved some of the balance from a commercial customer’s operating checking account into a tiered savings account and then guaranteed a higher rate for six months. We then built a scenario to revert back to the current rate after six months. After we built the scenarios we sent them to our CFO for approval. Our CFO is really impressed that we are using ProfitMagnifier to gauge the profitability of different scenarios.

We are currently working on a deal with a large commercial customer who approached us about a benefits program for their customers. The first thing we did was to use ProfitMagnifier to look at their profitability. They currently have only two small commercial loans and some deposits with us. The lender built a scenario in ProfitMagnifier that showed how profitable this commercial customer could be if they increased their loan and deposit balances. This was critical in helping us make a decision on whether or not to do this deal.

ProfitMagnifier provides critical business intelligence to help our Business Development and Finance teams work together to make the bank more profitable!”

Kylie LaPlante, Business Development Officer