Come join us!Explore our open positions >
The contribution margin represents the core of the solution.
Within a multi-level schema, you can define all relevant revenue, cost and contributing margin components and consequently measure the profitability of a bank at different levels. During the last step of the setup, you map each component on the lowest level to all the relevant data sources.
Example of profitability calculation and multi-level schema of profitability components
As you can see from the example below, we have defined 17 profitability components that we would like to monitor at the highest level. Starting with contribution margin 1 (i.e. net interest income), which consists of interest income as the first component, minus interest expenses as the second. You have to add-up net non-interest income to obtain contribution margin 2.
Because we would like to track net non-interest income in more detail, we have defined additional components of non-interest income and non-interest expenses at the second level and six additional components at the third level.
Bear in mind that this is just an example. The solution is completely customizable both in terms of profitability components definition and number of levels.