Mirai FTP & Profitability Solution
Manage NII volatility
to drive sustained profitability
Break down the transfer price at the contract level
into its components with the highest level of
granularity and full auditability.
Understanding Net Interest Income (NII)
Why choose the Mirai FTP &
Profitability Solution?
Net Interest Income (NII) is a critical metric for financial institutions, impacting shareholder capital infusion. The Mirai FTP & Profitability solution allows banks to build a transparent system for measuring profitability by breaking NII into its underlying components. It clarifies past profitability drivers, aids in pricing strategies for future earnings, and reduces uncertainty in financial planning.
Banks can use this insight to manage NII volatility, efficiently managing NII across diverse business areas and changing rate scenarios. This process shields business units from risks related to interest rates and liquidity, while centrally managing them through an ALCO-managed mismatch center. By accurately integrating costs like liquidity and funding, our FTP solution enables precise internal funding rates and foster sustained profitability for Tier 1 banks and G-SIBS.
Mirai FTP & Profitability
Solution Highlights
Comprehensive Calculation Methodologies
Leverage industry-leading transfer pricing methods featuring accurate base rate calculations for every instrument on the balance sheet.
FTP Extension into the Balance Sheet Forecast
Incorporate forward-looking transfer pricing into asset liability management scenarios, along with planning and budgeting.
Detailed Profitability Analysis
Compute profitability across multiple levels, from individual contracts to broader categories such as cost centers and business lines.
Deep dive into our advanced functionality
Mirai FTP & Profitability Solution Capabilities
Powered by our cloud-native platform, our FTP & Profitability solution introduces transformative use cases.
Access a comprehensive array of calculation methodologies for each FTP component, enabling modeling at varying levels of granularity based on required cost allocation. This ensures pricing alignment with the financial behavior of the product and the specific characteristics of the FTP component. Non-cash flow transfer pricing methods:
- Constant
- Hybrid
- Moving average
- Repricing term
- Solve method
Cash flow transfer pricing methods:
- Macaulay duration
- WAL (Weighted Average Life)
- Weighed term
- Yield to maturity
- Zero discount factor
Non-standard transfer pricing methods:
- Average yield method
- Guaranteed minimum margin
- Annual guaranteed margin