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Profitable Customers aren't Always Shiny

Dan Havey

February 8, 2024

It's easy to compare two loans against each other, but do you know which customer is more profitable?

Many banks and credit unions segment customers based on account balances, number of services, and length of tenure to determine their relative value to the organization. It’s true that as these things increase, the value and profitability of the customer or member will most likely also increase. However, it’s not the full story.

It is important to figure out a customer's actual profitability in addition to these other metrics. With that important data, you can retain and grow the most profitable relationships and implement strategies to improve the unprofitable ones.

Our IQProfitability module will do the heavy lifting for you, so you can do what you do best: Build relationships with clients across the profitability spectrum.


Funds Transfer Pricing

Funds Transfer Pricing will allocate cost of funds to all of your various loan products and alternate investment income to all of your deposits and shares. We follow the US Treasury Yield curve for fixed rate loans/fixed term deposits/shares and Federal Funds for floating rate loans and demand deposits/shares.


We will track all of your non-interest income at the account level. Deposit service charges, loan fees, trust, merchant, insurance, safe deposit box and many other types of fees are tracked.


Activity Based Costs are broken down into for main categories:

·       Origination Costs (Spread over the expected life)

·       Servicing Costs (Deposits Services, Loan Services, Wealth, etc.)

·       Manual Transactions (Teller Transactions)

·       Machine Transactions (Bill Pay, ACH, Wires, etc.)


Request your Demo

The best way to experience the Quest Analytics solution is to see it in action with a live demonstration. Our community banking CRM is right-sized for your needs.

During the demo, we can focus on the areas that are most important to your institution as well as discuss how we have helped other banks and credit unions just like yours to grow, retain, and enhance customer relationships.​

Click here and request your demo now.

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