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Using an MCIF to Price Products.

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The Free Library. (2014). Retrieved Jul 03 2014 from

One of the first things First Things is a monthly ecumenical journal concerned with the creation of a “religiously informed public philosophy for the ordering of society”. (First Things website). ?you learn in marketing is that you

shouldn’t should·n’t? 
Contraction of shouldn't.

shouldn't?should ?sell your products by lowering prices. You’ve

probably also learned that you should always try to differentiate your

products and services from your competition so you can sell based on

value. But how do you create value when the public perceives bank

products as mere commodities? A CD is a CD is a CD. Who’s got the

highest rates? Isn’t that all that matters?

Fortunately, an MCIF MCIF Marketing Customer Information File
MCIF Marketing Central Information File
MCIF Miniature Card Implementers Forum ?can help you understand the relationship your

customer has with you so you can sell them products they need when they

need them, at a price that's best for the customer and the bank. After

all, don’t you want to make your best product offers to your best

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The first thing that comes to mind for most small businesses is advertising on the Yellow Pages or on the local newspapers. While these are clearly necessary marketing channels, an option...


Which MCIF reports are useful for asset/liability management Asset/Liability Management
A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as “surplus management. ?

An MCIF can be a powerful asset/liability tool. One of the most

versatile reports in an MCIF is a product summary report. This report

breaks out your products into separate portfolios. It can also

illustrate the number of accounts, balances, weighted average rate, net

interest income, noninterest income, noninterest expense and

profitability for each subproduct, product, group or service. You can

use this information to increase your net interest income and increase

your noninterest income for a particular product.

Another useful report is the date analysis report, which shows

households with maturing CD or loan balances in a given time period. By

segmenting this report based on profit and the number of services a

customer has with the bank, you could offer a better CD rate or a better

loan rate for your most profitable customers who have multiple

services–when they need these services!

How do you use historical funds transfer pricing Funds Transfer Pricing (FTP) is a process used in banking to measure a funding source’s contribution to overall profitability. External links

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While you?ll want to continue to seek new customers, the key to profitability is retaining and cultivating your existing ones. It?s far less expensive to sell more products or services to them than to seek new, single-transaction customers. You minimize the need for costly advertising as...

  • Introduction to Funds Transfer Pricing From the Journal of Bank Cost &. Management Accounting

?data within your

MCIF to price your products?

One of the most exciting developments in the MCIF industry is the

use of historical funds transfer pricing (FTP FTP
?in full file transfer protocol
Internet protocol that allows a computer to send files to or receive files from another computer. Like many Internet resources, FTP works by means of a client-server architecture. The user runs client software to connect to ) data within an MCIF. With

FTP, a bank’s loans are given a funding rate and its term deposits

are given an earnings rate at the account level as of the date of

origination Origination
The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor’s real property.
Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real . These rates, which can be based on Treasury rates for

various maturities, are then used to calculate each account’s

unique net interest income, based on the account balance, account rate

and alternative sources and uses of funds available in the market.

It’s important to note that net interest income is by far the

largest driver of product profitability, typically accounting for up to

80 percent of a bank’s revenue.

There are many benefits for having this FTP data reside in an MCIF.

For instance, you could identify your most profitable products based on

spread (the difference between the interest rate of the product and the

FTP rate). You could identify your most profitable branches based on

product deployment and effective pricing. And, you could get to know

which of your CD and IRA Ira, in the Bible
Ira?(ī`rə), in the Bible.
1 Chief officer of David.
3 Two of David’s guard.

IRA, abbreviation
IRA. ?customers are rate sensitive!

CFOs typically use FTP rates to make weekly or monthly product

pricing decisions. However, senior management could use FTP to reward

branch managers and loan officers who set pricing based on FTP as a

benchmark. For example, a loan officer could be held accountable for

pricing an auto loan at not less than 2 percent above the FTP funding


In effect, having FTP data in your MCIF transforms it into a

sophisticated asset/liability tool. Using FTP for your bank’s

pricing could also transform your marketing department from a cost

centre to a profit centre. It’s that powerful!

John J. Coffey, CPA (Computer Press Association, Landing, NJ) An earlier membership organisation founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. . Gene Palm are the principals of Profit

Resources, a consulting company Noun 1. consulting company –. A firm of experts providing professional advice to an organisation for a fee
consulting firm
business firm, firm, house –. The members of a business organisation that owns or operates one or more establishments. “he worked for a ?that specializes in MCIF technologies:

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