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BI360 for Credit Unions Enabling World-class Decisions for Credit Unions A Solver Vertical Industry White Paper Updated: Nov – 2017, Document Version 4 Solver, Inc. www.solverglobal.com Copyright © 2017
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BI360 for Credit Unions

Enabling World-class Decisions for Credit Unions A Solver Vertical Industry White Paper

Updated: Nov – 2017, Document Version 4

Solver, Inc.

www.solverglobal.com

Copyright © 2017

Copyright Solver, Inc., 2017 BI360 White Paper | Page 2

Table of Contents

Introduction ..................................................................................................................................... 3

Architecture Overview .................................................................................................................... 4

CU01 – Performance Benchmarking ............................................................................................... 5

CU02 – Earnings Dashboard ............................................................................................................ 6

CU03 – Income Analysis .................................................................................................................. 7

CU04 – Performance Measures....................................................................................................... 8

CU05 - Performance Dashboard ...................................................................................................... 9

CU06 – Asset Quality Dashboard................................................................................................... 10

CU07 – Return on Assets ............................................................................................................... 11

CU08 - Asset Liability Management .............................................................................................. 12

CU09 – Capital Adequacy Dashboard ............................................................................................ 13

CU11 – Operational Measures ...................................................................................................... 14

CU12 – Operational Ratios ............................................................................................................ 15

CU15 – Supplemental Ratios ......................................................................................................... 16

CU20 – Profit and Loss Report ....................................................................................................... 17

CU21 – Balance Sheet .................................................................................................................... 18

CU30 – Call Report Summary ........................................................................................................ 19

CU45– Budget Goals Form ............................................................................................................ 20

Appendix – Terminology used in this Document .......................................................................... 21

Copyright Solver, Inc., 2017 BI360 White Paper | Page 3

Introduction

BI360 is a leading web-based Corporate Performance Management (CPM) suite made up of

budgeting, reporting, dashboards, and data warehousing, delivered through a web portal. BI360

is offered for cloud and on-premise deployment and represents the next generation of CPM

solutions. BI360 empowers business users with modern features including innovative use of

Excel in the model design process. End users have anytime, anywhere access from a modern

Web Portal and Mobile Apps.

The features that differentiate BI360 the most from other CPM applications are:

1. Available both for cloud and on-premise deployment. 2. Third generation Excel add-in for simple or complex reporting and budgeting template

design.

3. Modern Excel, Web and Mobile end-user front-ends for easy access to information and

powerful collaboration.

4. Pre-configured and extensible, “smart” data warehouse.

5. Deployed as individual modules or as a single, comprehensive CPM Suite with a single

security model and deployment.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 4

Architecture Overview

Below, you can see a simplified architecture with all of the BI360 modules. The Reporting,

Budgeting and Dashboard modules can both run live on a number of different ERP systems as

well as off the BI360 Data Warehouse.

Note: For more detailed information about BI360, please email [email protected] and request the

document: ”BI360 White Paper – Overview of the BI360 Suite.” You can also learn more about BI360 for Credit

Unions here.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 5

CU01 – Performance Benchmarking

This dashboard example compares key metrics between yourself and selected peers. It shows

the capability of using the BI360 Data Warehouse to load data from external data sources and

then, to design dashboards with the BI360 Dashboard module for user-friendly graphical

analysis, in this case used for benchmarking. This example will compare against past

performance and specifically chosen peer Credit Unions.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 6

CU02 – Earnings Dashboard

This is an example of an Earnings Dashboard for Credit Union executives. It shows the use of the

BI360 Data Warehouse to combine numerous important ratios and on a single dashboard, to

present whatever you determine as the most essential information related to Earnings. In this

sample dashboard, the following information is included:

Fixed Assets & FRA’s /Total Assets

Provision for Loan & Lease Losses/Average Assets

Net Income/Average Assets

Loan Income(Net)/Average Assets

Gross Income/Average Assets

Cost of Funds/Average Assets

Copyright Solver, Inc., 2017 BI360 White Paper | Page 7

CU03 – Income Analysis

This dashboard example focuses on Income. The following information is included:

Income by Category

Income by Type

Income Comparison

Copyright Solver, Inc., 2017 BI360 White Paper | Page 8

CU04 – Performance Measures

This BI360 dashboard example shows a series of measures as KPIs. The example below includes

charts and key figures, all in a YTD format.

Income

Net Operating Expense

Operating Expense

Net Worth

Total Assets

Personnel Expense

Cost of Funds

Net Interest Margin

Loans

Charge-Offs and PLLL

Copyright Solver, Inc., 2017 BI360 White Paper | Page 9

CU05 - Performance Dashboard

This dashboard example focuses on critical areas, such as Assets, Operating Expenses, Loans and

Investments. In these charts, you can drill down to see how NCUA Accounts adds up to make the

total amount for each category.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 10

CU06 – Asset Quality Dashboard

This dashboard example focuses on Asset Quality. The following information is included:

Delinquent Loans/Total Loans & Total Assets

Unrealized Gain (Loss) on AFS/Cost of AFS

Net Charge-Offs/Total Loans

Copyright Solver, Inc., 2017 BI360 White Paper | Page 11

CU07 – Return on Assets

This dashboard example focuses on critical information for the financial health of a Credit Union.

The YTD Return on Assets/Average Assets is demonstrated in a table and as a chart.

YTD Return on Assets as % of Average Assets

ROA vs Provision for Loss on Loans and Leases

Yield on Loans vs Cost of Funds

Copyright Solver, Inc., 2017 BI360 White Paper | Page 12

CU08 - Asset Liability Management

This dashboard example focuses on assets and liability management as dictated by the NCUA

category of ratios. The following information is included:

Cash Equivalents/Total Assets

Shares, Deposits + Borrowings

Long Term Assets and Total Assets

Shares and Share Drafts vs Shares and Borrowings

Copyright Solver, Inc., 2017 BI360 White Paper | Page 13

CU09 – Capital Adequacy Dashboard

As with earlier examples, these ratios are particularly important when considering a Credit

Union’s Capital position. Here we are concerned with the following ratios:

Classified Assets/Net Worth

Net Worth/Total Assets

Solvency Evaluation

Delinquent Loans/Net Worth

Copyright Solver, Inc., 2017 BI360 White Paper | Page 14

CU11 – Operational Measures

This dashboard example focuses on metrics identified in the Call Report automation process.

The following information is included:

Measures as KPI

YTD Net Measures

Assets by Category

Copyright Solver, Inc., 2017 BI360 White Paper | Page 15

CU12 – Operational Ratios

As with earlier examples, these ratios are of interest in the day-to-day operations of a Credit

Union:

Expense Ratio

Net Income vs Operating Expenses

Growth Categories

Copyright Solver, Inc., 2017 BI360 White Paper | Page 16

CU15 – Supplemental Ratios

This dashboard example contains additional metrics that support the overall view of the Credit

Union’s financial performance. The following information is included:

Cost of Funds/Average Assets

Net Margin & Operating Expense/Average Assets

Operating Expense vs Gross Income

Copyright Solver, Inc., 2017 BI360 White Paper | Page 17

CU20 – Profit and Loss Report

This BI360 report example shows a formatted Profit & Loss Report. Virtually any financial

statement can be designed with BI360’s flexible report designer. The example below includes

charts and key figures in large fonts to draw the reader’s attention to the most important

information in the report. Users can drill down to analyze the details behind the numbers.

As with all BI360 Reports and Dashboards, filters can be used to run the report for any time

period, any branch, etc. Also, the report can be run and published by email, or run on-demand in

Excel, in the Web Portal or on a Mobile device.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 18

CU21 – Balance Sheet

Similar to the Call Report Summary (CU14), this balance sheet is categorized in compliance with

the fashion that most Credit Unions organize their accounts.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 19

CU30 – Call Report Summary

The Call Report Summary is based on media produced by NCUA to show variance against prior

periods, as well as peer group or national average. Functioning as a Balance Sheet, it is common

to the industry.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 20

CU45– Budget Goals Form

This BI360 report example shows a web-based Budget Goals input form. Virtually any input form

can be designed with BI360’s flexible report designer. The example below includes budgets by

different branches and can be generated as individual branch reports for update by branch

managers, and the data will roll up to the main budget report.

As with all BI360 Forms, Reports and Dashboards, filters can be used to run the form for any

time period, any branch, etc.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 21

Appendix – Terminology used in this Document

This demo model is for Credit Unions, and it pays particular attention to the National Credit

Union Administration (NCUA) definitions and protocols. The basis for this data set is a data

warehouse uniquely shaped to address the 5300 Call Report requirements, which all NCUA

members must address quarterly.

CU01 - Performance Benchmarking

Each sheet of this report is dedicated to NCUA defined ratios within discrete categories. The

actual KPIs are self explanatory, and their existence in the category is to be expected by the

audience.

CU02 - Earnings Dashboard

Fixed Assets & FRAs refer to the fixed assets as well as foreclosed, recovered assets.

Provision for Loan & Lease Losses or PLLL is a specific reserve mandated by the NCUA.

Average Assets is a measure commonly used to be understood as the YTD balance

averaged and annualized.

CU04 - Performance Measures

This dashboard simply demonstrates the existence of the expressions and KPIs that a Credit

Union can expect to exploit once they have automated their call report using the BI360 data

warehouse and reports.

CU05 - Performance Dashboard

This dashboard allows for drill down to an NCUA Account from five distinct charts. Each of these

is a major category in the NCUA Call Report and is made up of various other measures. We have

left the null sets in the drill down as they demonstrate the completeness of the equation and in

many cases, will hold no value in the real world.

CU06 - Asset Quality Dashboard

AFS (Alternative Financial Solutions) include payday advance loans and other lending services.

Copyright Solver, Inc., 2017 BI360 White Paper | Page 22

CU07 - Return on Assets

Return on Assets as % of Average Assets – this is a critical measurement, though not

included in the NCUA summary. Demonstrating ROA as a by product of the Call Report

Automation is a key value add.

Yield on Loans vs Cost of Funds touches on one category of assets and the return therein.

CU08 - Asset Liability Management

Cash and Equivalents refers to cash on hand, liquid assets and similar items.

Shares, deposits and borrowings represent the liabilities a Credit Union is most

concerned with in terms of measuring their effectiveness.

CU11 - Operational Measures

While not included as a category in the NCUA Summary, all of the measures included are of

interest on their own.

CU12 - Operational Ratios

Interesting set of charts that demosntrate the use of expressions to generate charting that falls

outside of the NCUA demand for information. These are credible examples of information an

auditor might want, while not specifically included in the call report submission.

CU15 - Supplemental Ratios

This is a standard category of ratios. All the ingredients are self explanatory.

CU30 - Call Report Summary

This is an example of the call report summary, which the NCUA issues every Quarter as a

summary of all Credit Unions. Using our NCUA dataset, we can also run this for a specific peer or

peer group as well as running the numbers for our own data. Very helpful in bringing home the

point that benchmarking can be accomplished at a granular level.

CU45 - Budget Goals Report

The Budget Goals report consists of two reports in the demo. One is for a specific branch, the

other covers all entities. This demonstrates the Web Budgeting as well as security features of the

BI360 data warehouse.


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